discussions mac

1) The natural rate of unemployment.

2) The Phillips Curve.

3) Rational Expectations.

D9
Discuss:

1) The several motives people hold money.

2) The Quantity Theory of Money.

3) The significance of the increase in the quantity of bank reserves.

4) Why did Lehman Brothers fall? Do you think it should had been bailed out? Why?
D8
1) Define the concept of money and explain how banks create money.

2) Define the money multiplier and explain how monetary policy works.

3) According to Chairman Bernanke, what was the effect of the collapse of Lehman Brothers on the money market fund industry? How did the Fed respond and why?

D7
1) Explain the concept of aggregate demand and explain how

fiscal policy works.

2) Discuss the concept of the Laffer curve.

3) What does Prof. Ferguson warn about in his presentation regarding the relationship bewteen The United States and China that he calls Chimerica?
D6
1) Explain the concept of the marginal propensity to consume.

2) Explain the concept of the multiplier.

3) According to Inside Job, what caused the financial crisis? How do you think can we solve the financial crisis?
D5
Discuss,

1) When economists talk about correcting for externalities, what are they talking about? What are externalities?

2) Why do governments exist? Is it better to have a big government, small government or no government? What are the functions of government?

3) Watch the Short and Long Debt Cycles video and explains what needs to be done during a deleveraging. Begin by explaining what is deleveraging.
D4
Discuss

1) The effects of putting a price ceiling or rents.

2) The effects of putting a price floor on wages.

3) Four deficits America faces according to David Walker (Click on the Federal Debt link.).

4) What percentage of GDP was the national debt during World War II? What was it in 2000, in 2008, and in 2013? How serious in your opinion is the problem of the national debt?
D3
II Discuss:

1) Law of demand

2) Demand curve

3) Assumptions behind the demand curve

4) movements along the demand curve versus shifts of the demand curve

5) the difference between a surplus and a shortage

6) Watch Professor Ferguson’s The Ascent of Money and explain how the problem of high interest rates versus low interest rates was solved.