Introduction
GDP - measuring national income
Circular flow of income and expenditure. Gross domestic product.
Inflation - measuring the cost of living
Inflation and deflation. CPI-U. Real and nominal return. Phillips Curve.
Aggregate demand and aggregate supply
Summary
The monetary system
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Income and expenditure - Keynesian cross and IS-LM model
Summary
Foreign exchange and trade
Summary
Introduction to economics
This very short tutorial gives us the big picture of what economics is all about and, in particular, compares macroeconomics (where you are now) to microeconomics.
GDP and the circular flow of income and expenditures
Economics can some times get confusing because one person's expenditure is another person's income which can then be used for expenditure and on and on and on. Seems very circular. It is. This tutorial helps us grapple with this and introduces us to the primary tool economists use to measure a nations productivity/income/expenditure--GDP (gross domestic product).
Components of GDP
You already understand the circular nature of the economy and how GDP is defined from the last tutorial. Now let's think about how economists define the composition of GDP. In particular, we'll focus on consumption (C), investment (I), government spending (G) and net exports.
Real and nominal GDP
The value of a currency is constantly changing (usually going down in terms of what you can buy). Given this, how can we compare GDP measured in dollars in one year to another year? This tutorial answers that question by introducing you to real GDP and GDP deflators.
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Measuring cost of living -- inflation and the consumer price index
We might generally sense that our cost of living is going up (inflation), but how can we measure it? This tutorial shows how it is done in the United States with the consumer price index (CPI).
Real and nominal return
We think we're getting a certain return on our investments, but can we put it in terms of real purchasing power since the value of money is constantly changing? The answer is yes and this tutorial shows you how.
Deflation
Prices don't always go up. Sometimes they go down (we call this deflation). This tutorial explains how this happens.
Inflationary and deflationary scenarios
This tutorial walks through various scenarios of moderate and extreme price changes. Very good way to understand how activity in the economy may impact price (and vice versa).
The Phillips Curve - Inflation and unemployment
Economists have notices a correlation between unemployment and correlation (you may wan to guess what type of correlation). On some level, this tutorial is common sense, but it will give you fancy labels for this relation so that you can sound fancy at fancy parties.
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Circular Flow of Income and Expenditures
Understanding the flow of resources in the simplest possible economy
Parsing Gross Domestic Product
Understanding what GDP does and doesn't measure.
More on Final and Intermediate GDP Contributions
What happens when a good is not finished in a period
Investment and Consumption
Difference between every day and economic notions of investment and consumption
Income and Expenditure Views of GDP
Looking at a simple model of an economy
Components of GDP
Understanding the components of the expenditure view of GDP. Consumption, investment, government spending and net exports
Examples of Accounting for GDP
Thinking about how different types of expenditures would be accounted for in GDP
Real GDP and Nominal GDP
Using real GDP as a measure of actual productivity growth
GDP Deflator
Relationship between the GDP deflator, nominal GDP and real GDP
Example Calculating Real GDP with a Deflator
Example Calculating Real GDP with a Deflator
Introduction to Inflation
Basics of price inflation and the CPI (consumer price index)
Actual CPI-U Basket of Goods
Exploring the actual weightings for the CPI-U basket of goods
Inflation Data
Looking at actual sequential and year-over-year inflation data
Real and Nominal Return
Inflation and real and nominal return
Calculating Real Return in Last Year Dollars
Calculating real return in last year dollars
Relation Between Nominal and Real Returns and Inflation
Relation between nominal and real returns and inflation
Deflation
Basics of deflation
Velocity of Money Rather than Quantity Driving Prices
How velocity of money can drive price increases
Deflation Despite Increases in Money Supply
How you can have deflation even if the money supply increases
Moderate Inflation in a Good Economy
Why there tends to be moderate inflation during good economies
Stagflation
How a supply shock can cause prices to rise and the economy to stagnate
Deflationary Spiral
Basics of a deflationary spiral
Hyperinflation
Basic of hyperinflation. Weimar Germany, Hungarian Pengo and Zibabwean Dollar
Unemployment Rate Primer
Understanding how the headline unemployment rate (U-3) is calculated
Phillips Curve
The observation that inflation and unemployment tend to be inversely correlated