By the end of this section, you will be able to:
Explain the national saving and investment identity in terms of demand and supply
Evaluate the role of budget surpluses and trade surpluses in national saving and investment identity
By the end of this section, you will be able to:
Apply Ricardian equivalence to evaluate how government borrowing affects private saving
Interpret a graphic representation of Ricardian equivalence
By the end of this section, you will be able to:
Explain merchandise trade balance, current account balance, and unilateral transfers
Identify components of the U.S. current account balance
Calculate the merchandise trade balance and current account balance using import and export data for a country
By the end of this section, you will be able to:
Identify three factors that influence a country's level of trade
Differentiate between balance of trade and level of trade
By the end of this section, you will be able to:
Explain the determinants of trade and current account balance
Identify and calculate supply and demand for financial capital
Explain how a nation's own level of domestic saving and investment determines a nation's balance of trade
Predict the rising and falling of trade deficits based on a nation's saving and investment identity
By the end of this section, you will be able to:
Identify three ways in which borrowing money or running a trade deficit can result in a healthy economy
Identify three ways in which borrowing money or running a trade deficit can result in a weaker economy
By the end of this section, you will be able to:
Explain the connection between trade balances and financial capital flows
Calculate comparative advantage
Explain balanced trade in terms of investment and capital flows
By the end of this section, you will be able to:
Analyze graphs of the current account balance and the merchandise trade balance
Identify patterns in U.S. trade surpluses and deficits
Compare the U.S. trade surpluses and deficits to other countries' trade surpluses and deficits
By the end of this section, you will be able to:Contrast nominal GDP and real GDPExplain GDP deflatorCalculate real GDP based on nominal GDP values
By the end of this section, you will be able to:Explain how we can use GDP to compare the economic welfare of different nationsCalculate the conversion of GDP to a common currency by using exchange ratesCalculate GDP per capita using population data
By the end of this section, you will be able to:Discuss how productivity influences the standard of livingExplain the limitations of GDP as a measure of the standard of livingAnalyze the relationship between GDP data and fluctuations in the standard of living
By the end of this section, you will be able to:Identify the components of GDP on the demand side and on the supply sideEvaluate how economists measure gross domestic product (GDP)Contrast and calculate GDP, net exports, and net national product
By the end of this section, you will be able to:Explain recessions, depressions, peaks, and troughsEvaluate the importance of tracking real GDP over time
By the end of this section, you will be able to:
Calculate the labor force participation rate and the unemployment rate
Explain hidden unemployment and what it means to be in or out of the labor force
Evaluate the collection and interpretation of unemployment data
By the end of this section, you will be able to:
Explain historical patterns of unemployment in the U.S.
Identify trends of unemployment based on demographics
Evaluate global unemployment rates
By the end of this section, you will be able to:
Explain frictional and structural unemployment
Assess relationships between the natural rate of employment and potential real GDP, productivity, and public policy
Identify recent patterns in the natural rate of employment
Propose ways to combat unemployment