Chap 20 (Aggregate Demand and Aggregate Supply)
Study Guide: key terms or concepts that you must cover in this chapter
1. Model of AD and AS
2. Three facts about economic fluctuations
3. AD: determinants, its slope, movement along and shifts of AD
4. LRAS: determinants, slope and shifts
5. SRAS: slope and the basic reason behind the slope (without the three theories involved; only
the basic intuition)
Chapter 21: Monetary and Fiscal Policies
Study Guide: key terms or concepts that you must cover in this chapter
1. Theory of Liquidity Preference: money demand, money supply and real interest rate
2. Expansionary and Contractionary Monetary Policy
3. Expansionary and Contractionary Fiscal Policy: multiplier effect and crowding out effect
(without the mathematical part; simply the diagrammatic representation and intuitive
explanation)
Chapter 22: Inflation and Unemployment Rates
Study Guide: key terms or concepts that you must cover in this chapter
1. Short run relationship between inflation rate and unemployment rate Short Run Phillips
Curve (just the intuition and diagrammatic representation)
2. Long run relationship between inflation rate and unemployment rate Long Run Phillips
Curve (just the intuition and diagrammatic representation)
