1 / 15

Warm-Up

Warm-Up. Draw a correctly-labeled graph showing potential output and equilibrium price and output for: Long-run equilibrium Recessionary gap Inflationary gap Identify which gap is likely to occur as a result of the shutdown. Money.

fcook
Download Presentation

Warm-Up

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Warm-Up • Draw a correctly-labeled graph showing potential output and equilibrium price and output for: • Long-run equilibrium • Recessionary gap • Inflationary gap • Identify which gap is likely to occur as a result of the shutdown.

  2. Money Chapter 30: Money, Banking and the Federal Reserve System (pages 798-803)

  3. Roles Money Plays • Medium of Exchange • Used to buy/sell goods • Makes trading easier • Eliminates need to barter • Store of value • Lasts over time • Get paid now and spend later

  4. Roles Money Plays • Unit of Account • Tells how much goods are worth • Stated in terms of currency and not other goods

  5. Good For Money or No?

  6. Item #1 – iPhone 7

  7. Item #2 – Chipotle for Life

  8. Item #3 – World Series Tickets

  9. Brain Break • Who appears on the: • $1 bill • $2 bill • $5 bill • $10 bill • $20 bill • $50 bill • $100 bill • Penny • Nickel • Dime • Quarter • Half-Dollar

  10. Why Gold?

  11. Money Supply • M1  Currency in circulation • Cash, checks, traveler’s checks • Most basic definition • M2  M1 + “near monies” • Savings, CDs, money markets • More expansive definition

  12. Money Supply

  13. Calculating M1 and M2 • Use the data below to calculate M1 and M2 (assume anything not mentioned = $0)

  14. Calculating M1 and M2 • M1 = $850 + $200 = $1,050 • M2 = M1 + $302 + $1,745 = $3,097

More Related