Lecture 2: Basic Macroeconomic Concepts

MIT 14.02 Principles of Macroeconomics, Spring 2023
Instructor: Ricardo J. Caballero
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In this lecture, Prof. Caballero discusses basic macroeconomic concepts such as aggregate output, the unemployment rate, and the inflation rate.
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[@rsuarezatencio]

Thanks MIT for sharing all the lectures freely!

[@sitrakaforler8696]

00:18 Macroeconomic issues are currently volatile and complex. 02:35 Understanding aggregate output is crucial for macroeconomic analysis 07:02 Understanding GDP in a simple two-firm economy 09:33 GDP is the value of final goods and services produced in an economy during a period of time. 14:17 Income is derived from production, either going to workers or owners of capital. 16:29 Distinguishing between nominal and real GDP is crucial for understanding an economy. 20:36 Understanding nominal and real GDP and their relationship to prices and quantities. 22:46 Understanding the difference between nominal and real GDP is crucial for accurate economic analysis. 27:01 US employment measure through CPS 28:57 Unemployment rate at record low levels due to stimulus and pent-up demand. 33:09 Inflation is a sustained rise in prices 35:09 Inflation problem exists despite selective price index usage. 39:03 China fears a similar economic slowdown to Japan's.

[@ClaudiaS193]

Thank you Professor & MIT for sharing the lecture. I’m very grateful for that. 🙏 ❤ With best wishes for all of you from Germany 🇩🇪

[@iqranadeem7924]

Thanks professor, thanks MIT for this wonderful series of lectures.❤

[@AlAmin-uc8py]

We are grateful to MIT board & USA🙏🙏

[@forheuristiclifeksh7836]

19:32 Nominal vsReal GDP

[@user-nv2lg8rx3w]

Thank you Thank you Thank you MIT!!!

[@NRIAjay]

As professor walk a lot while delivering the lecture it would be great if we can have a far view angle of the video so our eye ball movement is not much while watching, higher the eye ball movement increases pain. writing my experience here. Loving the content and greateful to MIT.

[@marcwhite6267]

The amount of pain is immense; the suffering is ineffable.

[@funkymonk5344]

@@marcwhite6267😂😂😂👍👍👍

[@funkymonk5344]

Oh you’re the dude who said in another comment here that you doounderstand why young people are not interested in learning. Gosh, you’re really a boomer by all definitions. 😂

[@user-io1ug3tp3w]

The reason of the unemployment rate still high is people who do E commerce Since COVID is still growing

[@hamsternchips]

Professor, I'm curious about your choice to give definitions for the whole course in a single lexture. I wonder if the definitions were given in context of the concept being learned would help students retain the information better.

[@TheHiLiteShow7]

Thanks MIT the professor was very clear! What I’d love to know is what tools are available for an economy to fight against deflation? That seems a very hard position to be in

[@AlphaSena]

The most widely used tool by government of different countries in printing more money and cutting interest rates. Thus making people to spend more and more.

[@AyushMishra-qz9bv]

I am curious about the reference book used for this course, I am unable to get any information on the website.

[@mitocw]

ocw.mit.edu/courses/14-02-principles-of-macroeconomics-spring-2023/pages/topics-and-readings/ Best wishes on your studies!

[@nateturesdomain2599]

Does anyone know if there is a file for the professor's slides used in his presentation? I've downloaded the course, but I can't find them however much of the data is unreadable for me at the moment. Would be most helpful to not have to screenshot them all. Thank you.

[@mitocw]

Sorry, the slides are not available for this course.

[@kwekuamoah]

how are you determining final goods, how do you know someone won't take that good and use it .

[@oddshaft4851]

that’s part of advanced theory, introductory economics really gives you the set of tools for you to apply them in an overly simplistic model, so it is easy to determine on this model but it has really advanced mechanisms and interactions for you to determine what really is a final good and what isnt

[@NRIAjay]

When the next lecture is coming out?

[@mitocw]

kzbin.info/www/bejne/nKnVqIegZ86SiZY&ab_channel=MITOpenCourseWare

[@pankajarora5692]

How are you doing

[@johnd.5601]

What stops someone from entering all these lessons into a AI model and creating a trading bot? Any country can do this. Any country could create wealth by doing it.

[@fuji_films]

Lmao, you really think this helps anyhow with trading? My dawg, financial markets are WAY more complicated, and I am telling you that very few people know how a market will evolve. For something like 99.9% of the investors, it's pure sorcery. In the short terms markets move with no logic, when no important events happen. Trading bots have no use.

[@oddshaft4851]

developing a trade bot would require developing like 30 more factors for an AI to deal with, which today these AI’s can at least deal with 5 to 6 factors if that’s what I remember, and considering that took decades to develop, it is impossible today. financial markets are crazy complicated

[@alexandreoliveira-xy8ie]

Whoever filmed this class never took an online course, right? stop this camera 😂😂

[@SamuelVegaBermudez]

La economía son un montón de viejos mañosos.