Principles of Macroeconomics
Macroeconomics refers to that portion of economic analysis which is concerned with behavior of economy-wide issues, e.g., inflation, unemployment, etc. By means of theoretical reasoning and empirical research, economists have identified a number of relationships or principles which are useful in explaining and predicting macroeconomics, their application to an understanding of current economic problems and their implication for economic policy. The intent of the course is to provide the student with a basic level of economic literacy essential for a well-informed citizenship in the years ahead. In economics, perhaps more than any other comparable discipline, things are not always what they appear to be. Indeed, many economic problems both past and present have resulted from the misunderstanding of fundamental economic relationships.
(A requirement that must be completed before taking this course.)
Upon successful completion of the course, the student should be able to:
- Explain key economic terms as they relate to macroeconomics.
- Graph relationships between two variables.
- Interpret the graphs used in economic models.
- Solve a variety of economic problems using mathematical methods.
- Summarize economics and its relationship to the other social sciences.
- Differentiate between various types of economic systems.
- Apply the concepts of aggregate demand and aggregate supply to macroeconomic models.
- Explore National Income Accounting.
- Explore the development and role of money in an economic system.
- Explore the role of the Federal Reserve System and the process by which it controls the money supply and interest rates.
- Differentiate between Classical and Keynesian Economics Theories.
- Summarize the Keynesian criticism of Classical Theory.
- Predict the effects of monetary policy on an economic system.
- Predict the effects of fiscal policy on an economic system.
- Differentiate between demand side economics and supply side economics.
- Predict the effects of international trade on an economic system.
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