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CB2: Business Economics Exam Prep (CB2)
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Module 12
Aggregate Economic Models and Policy Debates
1
Deriving the IS Curve Algebraically
Derive the IS curve algebraically from goods market equilibrium conditions (Y = C + I + G).
2
Deriving the LM Curve Algebraically
Derive the LM curve algebraically from money market equilibrium conditions (M/P = L(Y, i)).
3
Solving for Equilibrium: The IS-LM Model
Solve the IS-LM system of equations to find the equilibrium income and interest rate.
4
IS-LM Model: Fiscal and Monetary Policy Impacts
Use the IS-LM model to calculate the effects of fiscal and monetary policy changes on equilibrium income and interest rate.
5
Deriving AS-AD from IS-LM
Derive the Aggregate Demand (AD) curve from the IS-LM model and construct short-run and long-run Aggregate Supply (AS) curves.
6
AD-AS Model: Shocks to Output and Price Level
Use the AD-AS model to calculate the effects of demand-side and supply-side shocks on output and the price level.
Fiscal Multipliers and Policy Effectiveness: Keynesian vs. Classical Approaches
Calculate fiscal multipliers and compare policy effectiveness under different macroeconomic schools of thought (e.g., Keynesian vs. Classical).
8
Policy Effectiveness in the Mundell-Fleming Model
Apply the Mundell-Fleming model to compare policy effectiveness under different exchange rate regimes.
End of course,
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