Summary EC202 Fiscal & monetary policy

Ch11-15 CH11 Income and Expenditure: The multiplier effect -importance of multiplier -aggregate consumption function -expected future income affects consumer spending -investment spending Ch12 Aggregate Demand and supply -AD curve- relationship between price and output -AS curve -relationship between price and output -Why SRAS curve different from LRAS -How AD-AS model analyze economic fluctuations -How monetary policy and fiscal policy stabilize economy Ch13 Fiscal Policy -Fiscal policy examples -Expansionary and contractionary -Why we need multiplier effect to affect automatic stabilizes -Calculate cyclically budget balance -Public debt would also be a concern? Ch14 Money /banking / the Federal Reserve System -What roles money play and forms? -Why level of MS so important to the remaining state of the economy -how do action of private banks and Federal Reserve affect MS -How Federal Reserve use open-market operations to change monetary base Ch15 Monetary Policy -example of monetary policy and ways to draw the diagram