Macroeconomics. Identify and apply relevant terminology and concepts to economic issues and problems.

Transcription

1 Macroeconomics Course Text and Study Guide Text: McConnell, Campbell R. and Stanley L. Brue. Macroeconomics: Principles, Problems, and Policies, 17th edition. McGraw-Hill, ISBN Study Guide: McConnell-Brue: Study Guide for use with Macroeconomics, 17 th Edition. McGraw-Hill, ISBN Course Description Macroeconomics analyzes the performance of the national economy and its links to the global This course is designed to examine many aspects of the economy from an aggregate perspective. Basic tools of economists are described, and an overview of the interrelated components of the United States economy is included., demand, economic measures, growth, employment, and inflation, as they relate to the business cycle and the health of the economy, are examined. The relationship between aggregate expenditures and aggregate supply is analyzed. The roles of fiscal policy, money, banks, and monetary policy in the economy are discussed along with examining the role politics and the Federal Reserve have on economic outcomes. Other topics include the deficit, surplus, national debt, and the U.S. Social Security system. Throughout the course, various international issues in today s global economy are presented. Course Objectives After completing this course, students will be able to: Identify and apply relevant terminology and concepts to economic issues and problems. Compare and contrast the market system of economics with other systems. Analyze and synthesize the public and private sectors of the U.S. Explain and synthesize the components of the National Income and Product Accounts. Describe the macroeconomic goals and problems. Analyze and synthesize short-run and long-run models of macroeconomic activity. Analyze government macroeconomic policy tools, and explain how they are used to stabilize the macro Compare and contrast various macroeconomic theories. Analyze and synthesize international economic activity, and use the results to predict the impact on U.S. macroeconomic activity.

2 Course Prerequisites There are no prerequisites to take Macroeconomics. Important Terms In this course, different terms are used to designate tasks: Exercise: A non-graded quiz to assist you in practicing the skills discussed in a topic. Exam: A graded online test. Course Evaluation Criteria The graded exams for Topics 1-19 are worth 60 points each. The maximum a student can earn in the course is 1,140 points. At the end of the course, each student will receive the number of points earned. The student s final letter grade is determined by the corresponding institution s grading scale. Course Topics and Objectives Topic Lesson Topic Subtopics Objectives 1 Limits, Alternatives, and Choices 2 The Market System and Circular Flow Economic Reasoning and Theory Concepts Graphs Decision Makers in the United States economy How Households, Businesses, and the Government Interact The United States in the Global Economy Circular Flow Identify and describe three interrelated features of how economists think about the world. Differentiate between a model and a theory. Define consumption, production, and scarcity, and describe their relationship. Describe how markets and trade impact society in macroeconomic terms. Define and give an example of opportunity cost. Represent a relationship between two variables with a graph. Describe how household income spending affects the macro Summarize different types of businesses, and describe potential strengths and weaknesses in each. Describe three ways in which the government guides and influences in the macro Describe how households and businesses interact in a market Analyze how the government interacts with other sectors of the Explain how globalization impacts competition. Illustrate the principle of comparative advantage.

3 3 Demand,, and Market Equilibrium 4 The U.S. Economy: Private and Public Sectors 5 The United States in the Global Economy 6 Measuring Economic Outcomes 7 Introduction to Economic Growth and Instability 8 Basic Macroeconomic Relationships 9 The Aggregate Expenditures Model Demand Equilibrium U.S. Households U.S. Businesses and Business Organization Economic Role of Government Government Budget Outlays and Receipts International Trade Comparative Advantage Exchange Rates Trade Organizations and Agreements Gross Domestic Product (GDP) Gross National Product (GNP) The Expenditure Approach National Income Accounting and Other Measures Employment Unemployment Inflation Growth Basic Macroeconomic Relationships The Aggregate Expenditures Model Equilibrium GDP The Multiplier Model Factors Influencing Draw a representation of the Circular Flow Model with its various components. Describe the inverse relationship between price and demand. Describe the relationship between prices and supply, and offer three determinants of demand. Illustrate, with a real-life example, how to determine market equilibrium. Graphically demonstrate the effects of price ceilings and price floors. Analyze public and private sectors of the United States Synthesize public and private sectors of the United States Explain the economic role of government. Analyze international economic activity. Use the results of the aforementioned analysis to predict the impact on U.S. macroeconomic activity. Describe comparative advantage using a real-life example. Explain the impact that trade organizations and agreements have on the global Explain and synthesize the components of the National Income and Product Accounts. Define the Gross Domestic Product and describe its relationship to the Gross National Product. Define the Gross National Product. Describe the Expenditure Approach. Describe the macroeconomic goals and problems. Define three types of Explain how economists measure Describe full employment and its impact on productivity and growth. Differentiate between the social, economic, and personal cost of Define inflation. Give examples of attempts to measure how inflation and unemployment relate. Analyze and synthesize short-run and long-run models of macroeconomic activity. Define equilibrium Gross Domestic Product. Describe how net exports and government purchases impact equilibrium.

4 10 Aggregate Demand and Aggregate 11 Fiscal, Deficits, and Debt 12 Money and Banking Equilibrium Gross Domestic Product Aggregate Demand and Framework Components of Aggregate Demand Components of Aggregate Fiscal Major Federal Government Spending Programs and Tax Sources Government Spending, Taxation, and Fiscal -Side and Demand-Side Fiscal How the Banking System Functions Financial Institutions 13 Money Creation Money: Its Creation and 14 Interest Rates and Monetary 15 Extending the Analysis of Aggregate Interest Rates Monetary Short-run Aggregate Long-run Aggregate The Phillips Curve Identify two ways the multiplier model can be misleading. Describe what causes the level of Gross Domestic Product to change. Define the three parts of the aggregate-demand/aggregate supply framework. Describe the streams of spending that relate to aggregate demand with a focus on investment and consumption. Compare and contrast long-run and short-run aggregate supply. Describe examples of supply-side policy. Define fiscal policy and its role to fight inflation and ensure full employment. Differentiate between major federal government spending programs and tax sources. Describe how government spending can help fight inflation and relate the risks of government intervention. Compare and contrast demand-side versus supply-side fiscal policies. Describe the essential functions of the demand for money. Describe the essential functions of banks pertaining to the macroeconomic perspective. Differentiate between various types of financial institutions. Summarize what money is. Explain how money was developed, creating a diagram or table to show how banks create money. Compare and contrast M1, M2, and M3, and discuss how money is supplied. Describe the determiners of the demand for money. Analyze the interest rate, and explain how it is used to stabilize the macro Analyze the monetary policy, and explain how it is used to stabilize the macro Define short-run aggregate supply. Define long-run aggregate supply. Explain the Phillips Curve. 16 Economic Growth Economic Growth Analyze and synthesize various models of economic growth. 17 Disputes Over Macro Theory and Classical Theory Keynesian Theory Monetarism New Classical Theory Rules vs. Discretion Distinguish between the Classical and Keynesian Theories. Explain monetarism. Compare and contrast the Classical and the New Classical Theories. Explain what is meant by Rules vs.

5 Discretion. 18 International Trade International Trade Analyze and synthesize international economic activity, and use the results to predict the impact on U.S. macroeconomic activity. 19 Exchange Rates, the Balance of Payments, and Trade Deficits Exchange Rates Types of Deficits Surpluses and Debt Review Review Macroeconomics Concepts Economic Decision Makers and Demand Economic Outcomes Measuring Economic Outcomes The Business Cycle Growth and Unemployment Inflation Inflation and Unemployment Aggregate Expenditures Aggregate and Demand Fiscal Monetary and Financial Institutions Monetary and the Federal Reserve Deficits and Surpluses National Debt Distinguish between passive and structural deficits. Differentiate between real and nominal deficits. Give an example of how economic and political conditions inform how one should judge surpluses and debt. Analyze the problem, and compare and contrast two plans for solving the projected Social Security shortage. None