Introduction to Macroeconomics,Jonathan Crook

1. Demand for the Euro is less than supply.
2. Look at news before coming to class.
3. resources are scarce, how much should be produced?
4. What is the origin of scarcity?
5. Businesses seek to maximize profits and share price; individuals seek to maximize satisfaction
6. "Aggregate Demand"
7. "Goods Market" <has a relationship with> "Money Market"
8. Abstractions and assumptions are used to make predictions.  Economic Models are selected based on frequency of their correctness.
9. Lucca's question:  Why the infighting between economists with their different models?  Response:  Some new theories take time to verify
10. "Econometrics"-data analysis and correlation
11. Demand and Supply Curves plotted for every possible price
12. marginal=extra
13. marginal satisfaction/cost for it
14. Demand=amount people wish to buy at every possible price
15. Equilibrium Condition
16. Start next handout:  Determinants of Demand and Supply
17. spot market:  for sale then and there
18. Price Index:  A number which shows adjusted prices  CPI-weighted average (Question:  How are weights determined, ie cultural specificity)
19. "nominal amount"=money amount
20. Discussion of supply and demand curve moving factors