I. Basic Economic Concepts (8-12%) |
|
A. |
Scarcity, choice, and opportunity costs |
4, 5, 7, 9, 10, 12-14, 17, 18 |
|
B. |
Production possibilities curve |
11-18 |
|
C. |
Comparative advantage, specialization, and exchange |
6-12, 18, 20, 21, 404, 405, 437, 754-779 |
|
D. |
Demand, supply, and market equilibrium |
47-65 |
|
E. |
Macroeconomic issues: business cycle, unemployment, inflation, growth |
472-483, 527-529 |
III. National Income and Price Determination (10-15%) |
|
A. |
Aggregate demand |
|
|
1. |
Determinants of aggregate demand |
592 |
|
|
2. |
Multiplier and crowding-out effects |
560-564, 573, 574, 578, 580-585, 587, 624, 625, 628, 629, 632 |
|
B. |
Aggregate supply |
|
|
1. |
Short-run and long-run analyses |
594-597 |
|
|
2. |
Sticky versus flexible wages and prices |
478-483, 750 |
|
|
3. |
Determinants of aggregate supply |
598-600 |
|
C. |
Macroeconomic equilibrium |
|
|
1. |
Real output and price level |
601, 685 |
|
|
2. |
Short and long run |
594-597, 600-607, 718-720 |
|
|
3. |
Actual versus full-employment output |
532, 594-597, 602-604 |
|
|
4. |
Economic fluctuations |
557-560 |
IV. Financial Sector (15-20%) |
|
A |
Money, banking, and financial markets |
|
|
1. |
Definition of financial assets: money, stocks, bonds |
639, 640, 701, 702 |
|
|
2. |
Time value of money (present and future value) |
300, 301, 698-700 |
|
|
3. |
Measures of money supply |
637-642, 645, 646, 672, 675 |
|
|
4. |
Banks and creation of money |
655-657, 663-677 |
|
|
5. |
Money demand |
671-673 |
|
|
6. |
Money market |
671-673 |
|
|
7. |
Loanable funds market |
298-303, 310, 312 |
|
B |
Central bank and control of the money supply |
|
|
1. |
Tools of central bank policy |
675-680 |
|
|
2. |
Quantity theory of money |
738, 739 |
|
|
3. |
Real versus nominal interest rates |
302, 540, 555 |
V. Inflation, Unemployment, and Stabilization Policies (20-30%) |
|
A |
Fiscal and monetary policies |
|
|
1. |
Demand-side effects |
731, 732 |
|
|
2. |
Supply-side effects |
731, 732 |
|
|
3. |
Policy mix |
747, 748 |
|
|
4. |
Government deficits and debt |
612, 625-632 |
|
B |
The Phillips curve |
|
|
1. |
Short-run and Long-run Phillips curves |
728, 729 |
|
|
2. |
Demand-pull versus cost push inflation |
535-538 |
|
|
3. |
The role of expectations |
730, 734, 741, 742, 743, 750, 751 |
VI. Economic Growth (5-10%) |
|
A |
Definition of economic growth |
|
B |
Determinants of economic growth |
|
|
1. |
Investment in human capital |
511, 516-517 |
|
|
2. |
Investment in physical capital |
267, 268, 302, 3099 |
|
|
3. |
Research and development, and technological progress |
6, 474-475 |
|
C |
Growth policy |
506, 511-514 |
VII. Open Economy: International Trade and Finance (10-15%) |
|
A |
Balance of payments accounts |
|
|
1. |
Balance of trade |
782 |
|
|
2. |
Current account |
782-783 |
|
|
3. |
Financial account (formerly known as capital account) |
783, 784 |
|
B |
Foreign exchange market |
|
|
1. |
Demand or supply of foreign exchange |
787-789 |
|
|
2. |
Exchange rate determination |
785-792 |
|
|
3. |
Currency appreciation and depreciation |
785-789 |
|
C |
Imports, exports, and financial capital flows |
490, 491, 495, 502, 574-577, 586, 591, 593, 594, 755, 795 |
|
D |
Relationships between international and domestic financial and goods markets |
755, 756 |