Sunday, March 12, 2017
Chapter 33 Blog Post
This chapter discusses the fluctuations that take place in the market on an often basis. In econ so far (or rather in macroeconomics) we have tended to pay more attention to the what typically happens to the market in the long term. In this chapter we now focus on what happens immediately, and how that may affect our expectations of what might happen in the long run. Much like any other chapter we explore the many different possibilities that may lead to a higher aggregate supply and aggregate demand. Aggregate supply and demand are variables basically dictated by how much we may want to purchase abroad, opposed to domestically. This to me still doesn't quite make that much sense to me, as I'm sure that we could very easily use what we learned from the last chapter to dictate all of this. The only positive to choosing the latter is that it seems to be very time efficient as it requires less graphs. I found the reading to once again be a little too time consuming and long. I believe that they made the chapter a little too long and content heavy so one can only imagine what the assessment on the chapter will contain.
Tuesday, February 28, 2017
Chapter 32 Blog Post
Chapter 32 begins to trace back on the topics that we have covered in the past. You can tell that the book is now finally coming to an end because the book is now summarizing an cross interpreting topics we have already covered. For example the chapter 26's loan-able markets concept and chapter 31's export and imports. This being the case, I felt as though I could easily get this chapter since this was a stuff we have already talked about it to an extent.
I think that the only thing that made this chapter a little more difficult than the rest of the chapters was the implementation of the supply and the demand curve. This is the much more different than the supply curve shown in the previous chapter so this completely messed me up. After trying so hard to grasp the curves and the logic behind them, I feel that this is contradicting them and this ultimately will mess me up during the ap free response testing.
I think that the only thing that made this chapter a little more difficult than the rest of the chapters was the implementation of the supply and the demand curve. This is the much more different than the supply curve shown in the previous chapter so this completely messed me up. After trying so hard to grasp the curves and the logic behind them, I feel that this is contradicting them and this ultimately will mess me up during the ap free response testing.
Thursday, February 16, 2017
Chapter 30 Blog Spot
This chapter touches on the topic of inflation. This is pretty appropriate in my opinion because we've just talked about the distribution of money and how the supply can increase or decreased based on different events. Given previous history classes I already associated excess money distribution with rising money levels and ultimately inflation. In this chapter however we learned about inflation in a different matter. The quantity theory of money finally made the idea that more money leads to inflation a real things (or at least a valid thought).
Despite understanding this chapter pretty well, the end kind of tripped me up ( which I suppose is pretty common at this point). I don't quite understand the point of classical dichotomy and why it is so important. I understand what it is, but not so much why it exists. Other than that I do understand monetary neutrality and actually find the idea of velocity of money quite interesting. I would have never guessed that there was an ounce of physics ideology in economics. Regardless it did help understand the concept a little more, as I do better on a more mathematically heavy topic. It also quite interesting that we try to figure out how quickly money will travel through the economy.
Finally I don't quite understand the idea of increasing revenue through inflation tax. Since the price level is increasing wouldn't the money really just be the same unless the government were able to immediately decrease the price level after collecting the tax?
Despite understanding this chapter pretty well, the end kind of tripped me up ( which I suppose is pretty common at this point). I don't quite understand the point of classical dichotomy and why it is so important. I understand what it is, but not so much why it exists. Other than that I do understand monetary neutrality and actually find the idea of velocity of money quite interesting. I would have never guessed that there was an ounce of physics ideology in economics. Regardless it did help understand the concept a little more, as I do better on a more mathematically heavy topic. It also quite interesting that we try to figure out how quickly money will travel through the economy.
Finally I don't quite understand the idea of increasing revenue through inflation tax. Since the price level is increasing wouldn't the money really just be the same unless the government were able to immediately decrease the price level after collecting the tax?
Thursday, February 9, 2017
Chapter 29 Blog Spot
This chapter begins to discuss the true definition of money and its actual importance in the financial system today. This chapter explains that money is essentially what helps us efficiently exchange items of variable values. Opposed to just assuming what's of equal trade value for everything, it is stated that money helps establish a measurement so that everyone is getting a fair trade. It also talks about how rare it is for two specific traders to want what the other has to offer. To avoid searching for items that hold equal importance, it's best that currency exists. This was a pretty simple concept, because this is stuff that I have witnessed. Despite not having though of it to this extent, I think that this only helped my understanding of the purpose of money.
The second part of the chapter talks about money's cycle through institutions such as banks and Federal Reserve Banks. I found this to be interesting as, I never quite realized that banks relied on another "intermediary" when providing money. I found all of that dandy, however struggled to understand the money multiplier and fractional reserve banking stuff. Hopefully that is explained in great detail in class, so that I will be solid for the next test.
The second part of the chapter talks about money's cycle through institutions such as banks and Federal Reserve Banks. I found this to be interesting as, I never quite realized that banks relied on another "intermediary" when providing money. I found all of that dandy, however struggled to understand the money multiplier and fractional reserve banking stuff. Hopefully that is explained in great detail in class, so that I will be solid for the next test.
Sunday, February 5, 2017
Chapter 28 Blog Post
This chapter covers the topic of unemployed. Despite the common knowledge that there is a work force and people can choose to be in or out of it, not many people know what necessarily constitutes being in or out of the work force. This chapter uncovers all of the truths behind unemployment and the many different factors that are taken into consideration to qualify for unemployment aid (money from the government). From tis we also discussed the many different ways that people try to cheat the system such as faking attempt to get a real job, or getting paid under the table. This brings up many debatable topics but for the purposes of keeping the chapter concise they keep the controversy to a minimum.
I think that this chapter was not very difficult to understand. This is something that many of us in the class are familiar with, (the concept, to the situation). I think that the reading was pretty straight forward, however I know that this, much like all of Econ, will be hard to comprehend on a test. I hope to finally be able to go in during my free periods (3rd and 4th) to receive assistance so that my grade doesn't drop soon in the second semester.
I think that this chapter was not very difficult to understand. This is something that many of us in the class are familiar with, (the concept, to the situation). I think that the reading was pretty straight forward, however I know that this, much like all of Econ, will be hard to comprehend on a test. I hope to finally be able to go in during my free periods (3rd and 4th) to receive assistance so that my grade doesn't drop soon in the second semester.
Wednesday, January 25, 2017
Chapter 27 Blog Post
Shahid Monametsi
This chapter discusses the basic tools used in finance when analyzing a financial market ( by the looks of it they are mostly focused on bonds in this chapter). I found this chapter to be easy to understand as it is often times the applied situations on tests that I struggle to understand. This chapter, however, seemed to have none of that built into the lesson, so I am positive that I will be able to succeed. This chapter covers the range of approaches that people (investors) take when they consider purchasing ownership. It was a little easier to digest as the last chapter covered this topic in great detail (the slightly easier portion of the unit test). To me this all seems very relate-able as risk aversion happens in everyday life. It only seems natural that it play a part in finance when choosing a stock or bond. Even the equations in this chapter were easy to grasp as they were all covered to an extent in math classes.
The only thing that I struggle to understand was the utility function. I'm not really sure how they got that shape from the risk aversion. One would think that wealth would only raise and that the curve would be concave up. I fail to comprehend why it is a flat line and hope to uncover this in the future, before any testing.
This chapter discusses the basic tools used in finance when analyzing a financial market ( by the looks of it they are mostly focused on bonds in this chapter). I found this chapter to be easy to understand as it is often times the applied situations on tests that I struggle to understand. This chapter, however, seemed to have none of that built into the lesson, so I am positive that I will be able to succeed. This chapter covers the range of approaches that people (investors) take when they consider purchasing ownership. It was a little easier to digest as the last chapter covered this topic in great detail (the slightly easier portion of the unit test). To me this all seems very relate-able as risk aversion happens in everyday life. It only seems natural that it play a part in finance when choosing a stock or bond. Even the equations in this chapter were easy to grasp as they were all covered to an extent in math classes.
The only thing that I struggle to understand was the utility function. I'm not really sure how they got that shape from the risk aversion. One would think that wealth would only raise and that the curve would be concave up. I fail to comprehend why it is a flat line and hope to uncover this in the future, before any testing.
Thursday, January 19, 2017
Chapter 26 Blog Post
This chapter discusses financial economics. It covers the the investment aspect of economics which is more specifically the investments portion of GDP. While I originally knew how to derive/ isolate the I in the equation of GDP (Y), I'm not too sure how to find the other equations that the book gave us. I know that we will most likely have to have memorized those though, I know that I will definitely have to commit that to my memory in the coming days.
Another thing that this chapter cover was the idea that the laws of supply and demand play a similar role when talking about investments. This to me was very shocking, as I did not think that I would be using a supply and demand chart in a chapter like this. This, however did make the concept easier for me to understand as it is not very complex. From there the chapter then talks about the factors that then affect the equilibrium interest. This was too difficult to comprehend either as this was also very similar to the factors stated in supply and demand. I think that this chapter will not be bad, however the tests always trip me up, so we'll see.
Another thing that this chapter cover was the idea that the laws of supply and demand play a similar role when talking about investments. This to me was very shocking, as I did not think that I would be using a supply and demand chart in a chapter like this. This, however did make the concept easier for me to understand as it is not very complex. From there the chapter then talks about the factors that then affect the equilibrium interest. This was too difficult to comprehend either as this was also very similar to the factors stated in supply and demand. I think that this chapter will not be bad, however the tests always trip me up, so we'll see.
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