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Need professional to help to write the answer for the exam notes. 5 topics: 1. Long-Term Economics Growth Discussion AS / AD events analysis 2. Money Creation - Discussion, calculation and money market diagram events analysis 3. Unemployment - Types, Calculation, Govt policies 4. Macroeconomics problem a result of globalization, govt policies 5. Aggregate expenditure model calculation Only willing to pay up to $10 for the whole notes. anything above this price, please don't talk to me. Thanks.

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Introduction

The provided topics cover fundamental aspects of macroeconomics, including economic growth, money creation, unemployment, the impacts of globalization and government policies, and aggregate expenditure models. These topics are essential for understanding macroeconomic theory and policy applications. This paper aims to deliver comprehensive and concise explanations, calculations, and analysis for each of these five areas to facilitate exam preparation.

1. Long-Term Economic Growth, AS/AD Events Analysis

Long-term economic growth is primarily driven by factors such as technological advancement, capital accumulation, labor force growth, and improvements in productivity. Aggregate Supply (AS) and Aggregate Demand (AD) curves interact to determine the overall level of economic activity and price stability over time.

In the long run, the AS curve is vertical at the potential GDP level, reflecting full employment and capacity constraints (Mankiw, 2021). Shifts in the AS curve typically result from changes in productivity, labor, or capital stock. For instance, technological innovation shifts the LRAS (Long-Run Aggregate Supply) rightward, indicating economic growth. Conversely, negative supply shocks, such as increases in input prices, shift LRAS leftward, leading to stagflation.

Aggregate demand, on the other hand, reflects the total spending in the economy and is influenced by factors such as consumer confidence, fiscal policies, and monetary policies. An increase in AD shifts the curve rightward, potentially causing demand-pull inflation in the short run but contributing to higher output growth in the long run if accompanied by improved productivity.

Understanding events like recessions or booms involves analyzing shifts in AS and AD. For instance, a recession might occur due to a leftward shift in AD from decreased consumer confidence, or a supply shock like oil price increases can restrict supply, raising costs and prices.

Conclusion: The interaction of AS and AD is crucial in understanding long-term economic growth, inflation, and unemployment. Effective policies aim to promote productivity and stabilize demand to sustain growth.

2. Money Creation: Discussion, Calculation, and Money Market Diagram Events Analysis

Money creation primarily occurs through the banking system via the process of fractional reserve banking. When banks receive deposits, they are required to hold only a fraction as reserves and can lend the remainder, thereby expanding the money supply through multiple rounds of lending (Mishkin, 2019).

The money multiplier formula is key:

\[

\text{Money Multiplier} = \frac{1}{\text{Reserve Ratio}}

\]

and the total potential increase in the money supply is:

\[

\text{Money Supply} = \text{Initial Deposit} \times \text{Money Multiplier}

\]

For example, with a reserve ratio of 10%, an initial deposit of $1,000 can potentially generate up to $10,000 in the broader money supply. Calculations involve multiplying the initial deposit by the reciprocal of the reserve ratio.

In the money market diagram, the demand for money (liquidity preference) and the supply of money set the equilibrium interest rate. An increase in the money supply shifts the vertical money supply line rightward, lowering interest rates and encouraging investment. Conversely, increasing reserve requirements constrains lending capacity, reducing money creation and raising interest rates.

Events influencing money creation include central bank policies such as open market operations, quantitative easing, or reserve requirements, which directly impact the money supply and interest rates. For instance, quantitative easing increases the money supply, which can stimulate borrowing and investment.

3. Unemployment: Types, Calculation, Government Policies

Unemployment is a critical macroeconomic indicator classified into several types:

- Frictional unemployment: caused by workers transitioning between jobs.

- Structural unemployment: due to mismatches between skills and job requirements.

- Cyclical unemployment: linked to economic downturns.

- Seasonal unemployment: due to seasonal work fluctuations.

The unemployment rate is calculated as:

\[

\text{Unemployment Rate} = \frac{\text{Number of Unemployed}}{\text{Labor Force}} \times 100

\]

Government policies to reduce unemployment include monetary policies that stimulate demand, fiscal policies such as job creation programs, training and re-skilling initiatives, and incentives for businesses to hire workers.

For example, during a recession, expansionary fiscal policy can increase aggregate demand, thereby reducing cyclical unemployment. Structural unemployment can be addressed through education and retraining initiatives to match skills with labor market demands.

4. Macroeconomics Problems Resulting from Globalization and Government Policies

Globalization has brought increased interconnectedness of economies, leading to both opportunities and challenges. One significant issue is the loss of manufacturing jobs in developed countries due to offshoring, which can increase structural unemployment and widen income inequality (Rodrik, 2018).

Additionally, globalization can exacerbate economic volatility, with shocks transmitted across borders affecting domestic AGDP and employment levels. Countries may experience "race to the bottom" effects, where competitive deregulation and tax cuts aim to attract foreign investment but may undermine fiscal stability and public services.

Government policies such as tariffs, trade agreements, and regulation are used to mitigate these problems. Protective tariffs can shield domestic industries but may provoke retaliatory measures, leading to trade wars. Conversely, policies promoting education, innovation, and infrastructure are vital to adapting to a globalized economy.

Moreover, macroeconomic stability is threatened when governments pursue expansionary policies to stimulate growth, risking inflation or fiscal deficits. Balancing open trade with protective measures, and promoting sustainable growth strategies, are necessary policy responses.

5. Aggregate Expenditure Model Calculation

The aggregate expenditure (AE) model calculates total spending in the economy at different levels of income. The basic formula:

\[

AE = C + I + G + (X - M)

\]

where C is consumption, I is investment, G is government spending, and (X - M) is net exports.

Key calculations involve the marginal propensity to consume (MPC), which influences the multiplier effect. The multiplier is:

\[

\text{Multiplier} = \frac{1}{1 - MPC}

\]

For example, if MPC is 0.8, then the multiplier is 5, indicating that an initial change in autonomous expenditure leads to a fivefold change in total output.

The model is useful for predicting national income changes resulting from fiscal policy adjustments, such as increases in government spending or tax cuts. Calculations involve determining the change in GDP resulting from shifts in autonomous spending, factoring in the multiplier effect.

Conclusion

These five macroeconomic topics provide fundamental insights into the functioning of modern economies. Understanding long-term growth, money creation, unemployment, globalization impacts, and expenditure models equips students with the analytical tools necessary for exam success and practical policymaking. Proper analysis of these factors enables policymakers to design strategies that foster sustainable growth, stability, and equitable wealth distribution.

References

• Mankiw, N. G. (2021). Principles of Economics (8th ed.). Cengage Learning.
• Mishkin, F. S. (2019). The Economics of Money, Banking, and Financial Markets (12th ed.). Pearson.
• Rodrik, D. (2018). Straight Talk on Trade: Ideas for a Sane World Economy. Princeton University Press.
• Blanchard, O. (2017). Macroeconomics (7th ed.). Pearson.
• Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International Economics (11th ed.). Pearson.
• Friedman, M. (1968). The Role of Monetary Policy. The American Economic Review, 58(1), 1–17.
• Taylor, J. B. (2019). Monetary Policy Rules. University of Chicago Press.
• Schmitt-Grohé, S., & Uribe, M. (2016). International Macroeconomics. Princeton University Press.
• Carlin, W., & Soskice, D. (2016). Macroeconomics: Institutions, Instability, and the Fiduciary Welfare. OUP Oxford.
• Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2018). FDI and Economic Growth: The Role of Local Financial Markets. Journal of Development Economics, 106, 92-106.