Analysis of the aggregate economy: national income, inflation, business fluctuations, unemployment, monetary system, federal budget, international trade and finance. Prerequisite: ECON 200; recommended: MATH 111. Offered: AWSpS.
•Measuring aggregate economic variables: GDP and prices •Productivity and long run growth •Saving, investment, and the financial System •Unemployment and its Natural Rate •Money, the fractional reserve banking system, the role of central bank and the conduct of monetary policy •Aggregate demand and aggregate supply analysis and analysis of short term economic fluctuations •Monetary policy (analysis of demand for money and the transmission of monetary policy to changes in the real sector) •Fiscal policy, the Keynesian expenditure and tax multipliers and discussion of government deficits and national debt •Open economy macroeconomics (trade balance and exchange rates)
Student learning goals
Understand and be able to use macroeconomic terminology
Learn how the macroeconomic variables are related
Learn to read and interpret the empirical information in macroeconomic data, graphical displays, and tables
Recognize differences between short- and long-term horizons in the economy, for example, analyze sources of long-term economic growth and causes of short-term economic fluctuations
Analyze the sources of long-term prosperity and the contributing factors to long term economic growth
Analyze the causes of short-term economic fluctuations (business cycles) and the mechanism of “fixing” the economy to restore full employment (low unemployment) and low inflation
General method of instruction
Class assignments and grading
In order to meet the Economics department requirements, the median grade for this class will be set between 2.8 and 3.1. Grades will be curved.