Topics
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The circular flow of income model
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Measures of economic activity: GDP, GNP, or GNI
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Short-term fluctuations and long-term trend
2.2 Aggregate Demand and Aggregate Supply
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The AD curve
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The components of AD
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The determinants of AD or causes of shifts in the AD curve
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The meaning of aggregate supply
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Alternative views of aggregate supply
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Shifting the aggregate supply curve over the long term
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Short-run equilibrium
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Equilibrium in the monetarist/new classical model
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Equilibrium in the Keynesian model
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The nature of the Keynesian multiplier
2.3 Macroeconomic Objectives
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The meaning of unemployment
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Consequences of unemployment
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Types and causes of unemployment
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The meaning of inflation, disinflation, and deflation
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Consequences of inflation
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Consequences of deflation
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Types and causes of inflation
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Possible relationships between inflation and unemployment
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The meaning of economic growth
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Causes of economic growth
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Consequences of economic growth
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The meaning of equity in the distribution of income
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Indicators of income equality/inequality
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Poverty
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The role of taxation in promoting equity
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Other measures to promote equity
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The relationship between efficiency and equity
2.4 Fiscal Policy
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Sources of government revenue
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Types of government expenditures
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The budget outcome
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Fiscal policy and short-term demand management
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The impact of automatic stabilizers
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Fiscal policy and its impact on potential output
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Evaluation of fiscal policy
2.5 Monetary Policy
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Interest rate determination and the role of a central bank
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Monetary policy and short-term demand management
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Monetary policy and inflation targeting
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Evolution of monetary policy
2.6 Supply Side Policies
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Supply-side policies and the economy
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Investment in human capital
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Investment in new technology
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Investment in infrastructure
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Industrial policies
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Policies to encourage competition
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Labour market reforms
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Incentive-related policies
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The strengths and weaknesses of supply-side policies
