About This Chapter
CSET Business - Macroeconomics: General Concepts: Chapter Summary
Our chapter on general concepts of macroeconomics will teach you about various economic philosophies, including capitalism, communism and socialism, as well as the realities of mixed economies. This series of video lessons can serve as an introduction to these topics or as a refresher for prospective business teachers who are preparing for the California Subject Examinations for Teachers (CSET) Business Subtest II. By the end of this chapter, you should have general knowledge of the following areas:
- The Keynesian and Classical Models of the Economy
- Components of the Gross Domestic Product (GDP)
- The GDP Deflator and Consumer Price Index
- Nominal vs. Real GDP
- Primary Determinants of the Economy
- Supply and Demand Curves in the Keynesian and Classical Models
- Aggregate Supply and Aggregate Demand Model
- Real vs. Nominal Interest Rates and Changes in Prices
- The Progressive Tax Code
- Economic Performance Over Time
CSET Business - Macroeconomics: General Concepts Objectives
To work in a public secondary school in California, aspiring business teachers must pass the CSET Business Single Subject Exam. Included in this 3-part certification exam is the CSET Business Subtest II, which assesses proficiency in accounting, finance and economics. General questions about macroeconomics are included among the 15 economics-focused multiple-choice questions on this subtest, and macroeconomics also could be a topic for one of the test's two constructed-response questions.
This chapter on general concepts in macroeconomics includes a number of video lessons, each of which is accompanied by a self-assessment test. You can use this test to identify any weak spots in your knowledge of macroeconomics prior to watching the video and then retake it after the lesson to see if your knowledge has grown.
1. The Keynesian Model and the Classical Model of the Economy
Economists use two basic models to describe economic growth. In this lesson, you'll find out more about each one of these models using real-world examples. So buckle up your seatbelts!
2. Gross Domestic Product: Definition and Components
Learn how economists measure the total production of an economy using gross domestic product (GDP). This lesson also outlines the components that make up a GDP. How do we calculate the economic value of a nation?
3. The GDP Deflator and Consumer Price Index
Have you ever wondered how inflation is measured? This lesson will compare and contrast two of the indicators used to measure inflation - the consumer price index and the GDP deflator.
4. Gross Domestic Product: Nominal vs. Real GDP
Watch this video and you'll learn the difference between nominal GDP and real GDP with the help of a memorable story about a competition between twin brothers.
5. Gross Domestic Product: How to Calculate Real GDP
Learn how to adjust economic output for inflation using real GDP. This calculation enables economists to remove the effect of rising prices and more accurately compare economic output from multiple years.
6. Productivity: The Economy's Long-Run Growth Engine
Using real-world examples, you'll learn more about what productivity is and four things that determine it within a nation - physical capital, technology, human capital, and natural resources.
7. Supply and Demand Curves in the Classical Model and Keynesian Model
See how economists illustrate aggregate supply and aggregate demand in the long-term and short-term using the Classical and Keynesian models. This lesson emphasizes the differences in the shape of the aggregate supply curve using these two models.
8. Aggregate Supply and Aggregate Demand (AS-AD) Model
Supply and demand models are useful for examining the behavior of one good or market, but what about looking at a whole economy? Luckily, the aggregate supply and aggregate demand model lets us do just that.
9. Real vs. Nominal Interest Rates and Changes in Prices
This lesson explains the important difference between nominal and real interest rates and provides examples of how to use the Fisher equation to adjust nominal rates for inflation.
10. Understanding the Progressive Tax Code
In this lesson, learn what a progressive tax code is, how to recognize it, and what the alternatives are. Then, learn the differences between the three tax codes: progressive, regressive and proportional. Finally, learn how sales tax would impact progressivity.
11. The Business Cycle: Economic Performance Over Time
Learn the economic terms that describe economic performance over time and how indicators such as unemployment and inflation behave throughout these economic fluctuations.
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Other chapters within the CSET Business Subtest II (176): Practice & Study Guide course
- CSET Business - Accounting Principles
- CSET Business - Principles of Finance
- CSET Business - Personal Finance
- CSET Business - Economic Concepts
- CSET Business - Microeconomics
- CSET Business - Macroeconomics: Unemployment & Inflation
- CSET Business - Macroeconomics: Money, Federal Reserve System & Banking
- CSET Business - Macroeconomics: Fiscal and Monetary Policy
- CSET Business - International Economics
- CSET Business Subtest 2 Flashcards