Economics 202: Principles of Macroeconomics
Learning ObjectivesAfter completing this course, students will be able to:
- Explain how GDP, the unemployment rate, inflation, interest rates, and economic growth are measured, distinguish between real and nominal variables, and explain the significance of these measures.
- Analyze and differentiate among the problems created by high, low, and unexpected inflation.
- Describe and assess the role the financial system plays in the economy.
- Analyze the determinants of long-run variations in national economic growth rates, wealth, and income.
- Analyze the determinants of short-run fluctuations of economic variables over the business cycle.
- Identify the factors determining aggregate demand and aggregate supply, and apply the AS/AD model to analyze macroeconomic conditions.
- Identify the policy tools available to fiscal and monetary authorities, and analyze how these tools, including automatic fiscal stabilizers, might be used to address the goals of monetary and fiscal policy.
- Apply the Keynesian multiplier model to policy analysis, and describe its strengths and weaknesses.
- Identify and analyze both short-run and long-run effects of fiscal and monetary policy.
This list shows the Economics faculty's expectation of minimum course content and does not restrict the individual instructor in any other way.
- Introduction to Economics; difference between Microeconomics and Macroeconomics
- Measuring National Income: GDP, GDP Deflator, Limitations of GDP
- Measuring Price Levels: CPI, Adjustment for Inflation
- Measuring Unemployment: U-3, Labor Force Participation Rate, other similar measure
- Basics of Development and Growth; the roles of labor, capital, and institutions
- Role of the Financial System and the Determination of Interest Rates
- The Nature of Money, the Measurement of Monetary Aggregates, the Role of Banks and the Central Bank in Creating Money, the Relationship Between Money Growth and Inflation, and the Quantity Equation
- Aggregate Demand, Aggregate Supply, and the Business Cycle
- Purposes and Instruments of Monetary Policy, Purposes and Instruments of Fiscal Policy, and Arguments for and Against Activist Policy
Other topics that are commonly included, at the instructor’s discretion:
- Open-Economy Macroeconomics: Exchange Rates, Balance of Trade, International Flows of Capital, Effects of Tariffs and Quotas, Exchange Rate Manipulation
- Basic Tools of Finance, Present Value and Risk Management
- Applying Macroeconomic Theory: Current Events, History of the Business Cycle: Financial Panics, the Great Depression, the Great Recession, and Associated Monetary and Fiscal Policy