Gross Domestic Product — the market value of all final goods and services produced domestically. Lec 1

Gross National Product — output produced by a country's residents, wherever located. Lec 1

The distinction between price-adjusted (real) and current-price (nominal) values. Lec 1

A price index based on all domestically-produced goods (nominal ÷ real GDP). Lec 1

Consumer Price Index — the price of a fixed consumption basket. Lec 1

Cyclical fluctuations of output around its trend. Lec 1

$r \approx i - \pi$ — the real rate is the nominal rate minus inflation. Lec 1

PPP — exchange rates that equalise the price of a common basket across countries. Lec 1

The accounting framework that records output, income, and expenditure. Lec 1

The standard cross-country dataset of comparable real GDP, capital, and productivity used in development and growth accounting. Lec 4

Hodrick–Prescott filter — extracts the smooth trend of a series, leaving the cyclical component. Lec 1

The rate of change of the general price level. Lec 1

Nominal and real rates at which currencies trade. Lec 1

Government spending and taxation decisions. Lec 10

Central-bank interest-rate setting. Lec 1

The Solow model and related frameworks for long-run growth. Lec 4

Income not consumed; in the two-period model, $s = y_1 - c_1$. Lec 2

The intertemporal optimality condition linking marginal utility across periods: $u'(c_1) = \beta(1+r)\,u'(c_2)$. Lec 2

Modigliani: households smooth consumption over the life cycle, saving in working years and dissaving in retirement. Lec 2

Friedman: consumption depends on permanent (expected lifetime) income, not transitory current income. Lec 2

The household's allocation of consumption across time subject to a lifetime budget constraint. Lec 2

The two-period consumption–saving model with borrowing and lending at the real rate $r$. Lec 2

The preference to keep consumption stable across periods rather than matching the income profile. Lec 2

The method of solving a constrained optimisation (e.g. the consumer's intertemporal problem) via a Lagrangian. Lec 2

The household choosing its consumption path to maximise utility subject to the lifetime budget constraint. Lec 2

Limits on how much a household can borrow against future income, forcing consumption to track current income. Lec 2

The value today of a future payment, discounted at the real interest rate. Lec 2

A class of models with nominal rigidities (sticky prices/wages), referenced here as a contrast to the classical framework. Lec 2

$Y = AF(K,N)$ — output as a function of capital, labor, and productivity. Lec 4

The $A$ term in the Production Function — output not explained by measured inputs. Lec 4

The functional form $Y = AK^\alpha N^\beta$. Lec 4

Scaling all inputs by a factor scales output by the same factor (Property 4 of the production function). Lec 4

$\text{MPN} = AF_N$ — the extra output from one more unit of labor. Lec 4

$\text{MPK} = AF_K$ — the extra output from one more unit of capital. Lec 4

Decomposing cross-country income differences into inputs vs Total Factor Productivity. Lec 4

TFP growth measured as the residual in growth accounting. Lec 4

A theory of fluctuations driven by TFP (productivity) shocks. Lec 4

$K_{t+1} = (1-\delta)K_t + I_t$ — next period's capital from depreciation and investment. Lec 5

The effective cost of using one unit of capital for one period. Lec 5

The wear-and-tear rate $\delta$ at which capital is used up. Lec 5

The firm's intertemporal optimisation over investment. Lec 5

$r$ — the price that clears the goods market. Lec 6

The $S = I$ condition that clears the goods market. Lec 6

An unexpected change in Total Factor Productivity. Lec 6

A fiscal expansion raising $r$ and reducing private investment. Lec 6

The distinction between a direct effect and the full market-clearing effect. Lec 6

$N^D$ — the firm's Marginal Product of Labor curve. Lec 7

$N^S$ — derived from household optimisation. Lec 7

$-U_N = w \cdot U_C$ — the optimality condition for labor supply. Lec 7

The wealth channel in the labor-supply response to wages. Lec 7

The price channel in the labor-supply response to wages. Lec 7

Present Value of Lifetime Resources. Lec 7

$w$ — the equilibrium price of labor. Lec 7

Joblessness arising once the frictionless model is extended. Lec 7

$u = U/(U+E)$ — the unemployed as a share of the labor force. Lec 8

$(E+U)/$ working-age population. Lec 8

The employment-to-population ratio. Lec 8

Downward wage rigidity as a source of unemployment. Lec 8

Unemployment because search and matching take time. Lec 8

The two-state E↔U model of the labor market. Lec 8

$f$ — the U-to-E transition probability. Lec 8

$d$ — the E-to-U transition probability. Lec 8

The DMP model with endogenous job-finding and separation rates. Lec 8

The unemployment rate where flows into and out of unemployment balance: $u^* = d/(d+f)$. Lec 8

Relaxing the representative-agent assumption. Lec 9

Gini, variance of log, and percentile ratios. Lec 9

SBTC — technical change that raises skilled relative to unskilled wages. Lec 9

The hollowing-out of the middle of the wage/skill distribution. Lec 9

Routinization — computers substituting for routine tasks. Lec 9

Production as a sum of tasks performed by capital or labor. Lec 9

Its productivity, displacement, and reinstatement effects. Lec 9

The fraction of income paid as wages — and its decline. Lec 9

$G_t+(1+r)B_{t-1}=T_t+B_t$. Lec 10

The equivalence of tax vs debt financing for a given spending path. Lec 10

A non-distortionary tax — a pure income effect. Lec 10

$\tau_N$ — a distortionary tax that shifts Labor Supply. Lec 10

$\tau_C$ — a distortionary tax on consumption. Lec 10

$\Delta b_t = d_t + \frac{r-g}{1+g}b_{t-1}$ — how the debt ratio evolves. Lec 10

$D_t = G_t - T_t$ — the deficit excluding interest. Lec 10