Warning: This post would be bored for people w/o Macro background cause i'm trying to do a recap of what i've remembered in here.

I'm currently overloaded with information!!

Macro 2 is driving me nuts..

6 essay qns of 20marks each to be completed in 2hrs.

Can't study all and had to resort to spotting qns..

Hopefully what I've spotted would come out.

1. Why and Type of Money Rule
- Cold Turkey Approach
- Gradualism Approach

2. Phillips Curve
- inverse relationship btwn unemployment & inflation
- Friedman assume 'no money illusion'

3. 'Fooling' Model
- market clearing model
- firms operates on demand for labour
- workers operate on supply of labour
- look at current actual price lvl & previous price to generate future price

4. Classic VS Keynes
- Classical - market clearing model
- wage adjustable cause workers want keep their jobs & willing to take pay cuts
- Keynesian - non market clearing model
- cause unemployment in the LR

5. AS-AD
- profit maximising output role where firms produce at MR = MC
- law of diminishing marginal productivity
- MC = MR = P

6. Transmission Mechanism
- 2 problems of interdependent variables & indeterminate outcomes
- IS-LM introduced

7. Post Keynesian Model
- money wages & prices sticky

God, please help me in remembering!!