ECON 102 Lecture Notes - Lecture 1: Federal Funds Rate, Output Gap, Economic Indicator
Document Summary
Economic way of thinking: quick review of microeconomics. Markets and government: aggregate demand and supply, role of government, market process. Core macroeconomics: money, banking, monetary policy, fiscal policy, economic growth, phillips curve, unemployment, inflation, equilibrium. International trade, comparative advantage, international monetary system, exchange rates. Homework: typically on last page of notes sent out at the beginning of each week. Readings: overview on the last sheet of the syllabus, skipping chapter 2-5 because they are topics covered in microeconomics. Unemployment insurance: safety net after people get laid off. Initial unemployment insurance claims: immediately after get laid off (more likely to get another job: continuing unemployment insurance claims: have been taking money/using the insurance for a much longer period. Firms increase layoffs (which leads to: 350,000 is consistent with stable unemployment rate, labor market is heading in the right direction: This is reducing the slack in the labor market. Lots of slack = lots of unemployment/lots of unemployment.
