The introductory macro module: how a country's output is measured, why that
measurement grows, and how the saving of one person becomes the investment of another.
Students sort transactions into C, I, G and NX and find the half that do nothing to GDP;
drive prices and quantities apart until nominal and real GDP tell opposite stories; run
the production function into diminishing returns; and shift the loanable-funds curves
until they can say, without hesitating, which curve a budget deficit moves.
01Where Does It Land?Sixteen transactions sorted into C, I, G, NX — or into nothing at all. Imports, transfers, old flats, unsold stock.
02Nominal, Real, DeflatorA two-good economy with the price and quantity dials separated. Move the base year and watch what refuses to change.
03What the Number MissesSeven changes that make the country no better off and the headline figure climb anyway. With the defence stated fairly.
04The Productivity FunctionY/L = A·F(1, K/L, H/L, N/L) with four dials. The curve flattens under your hand.
05Catch-UpTwo countries, same saving rate, different starting capital. Then one switch that stops convergence for good.
06The Policy BenchEleven growth policies: name the determinant each moves, then say whether it buys a level or a rate.
07Where Saving Comes FromPrivate, public, national. Cut taxes, choose how much households save, and watch investment decide.
08The Market for Loanable FundsSaving incentive, investment credit, budget deficit. Three policies, two curves, and crowding out measured.
09Arguments Worth HavingTwelve open questions with no answer key. Imputed rents, the convergence that did not happen, what the borrowing bought.