Principles of Macroeconomics

Course Number: ECONOMIC 2130
Course Name: Principles of Macroeconomics (Online)
Course Description:    An introduction to basic economic principles with applications to current economic problems. Demand, supply and the role of prices in the U.S. economy are briefly surveyed followed by in-depth study of the national (or macro) economy. Topics include unemployment, inflation and economic growth; theories of economic recession and prosperity; the role of money and banking in the economy; government taxing and spending policies to stabilize the economy; and the U.S. as part of the international economy.
Prerequisites:    None
Level: Undergraduate
Credits: 3
Format: Online  (This course is also offered in print.)
Program: Bachelor of Science in Business Administration
Bachelor of Science in Criminal Justice

Registration Instructions

NOTE: The information below is representative of the course and is subject to change.  The specific details of the course will be available in the Desire2Learn course instance for the course in which a student registers.

Additional Information

Learning Outcomes
Upon completion of this course, you should be able to

  • Apply the five critical thinking skills to economic decision making.
  • Identify efficiency and equity issues for the economy.
  • Explain how national income is determined.
  • Explain what factors determine the national unemployment rate.
  • Explain factors that affect the infaltion rate.
  • Demonstrate tools that can be used to affect national income, unemployment rates, and the overall price level.

Unit Descriptions
Course Organization and Assignment Descriptions

Unit 1
Overview
Unit 1 introduces you to the basic economic terms and concepts that we will use for the entire course. We will also identify and discuss the economic problem. In addition, you will be introduced to demand and supply with many applications for the economy.

The material in Unit 1 is designed to help you understand the critical thinking skills that allow economists to analyze a wide variety of social issues. Unit 1 includes four lessons and covers the following chapters from the textbook:

Chapter 1: The Scope and Method of Economics
Chapter 2: The Economic Problem: Scarcity and Choice
Chapter 3: Demand, Supply, and Market Equilibrium
Chapter 5: Introduction to Macroeconomics

Outcomes
Upon completion of this unit, you should be able to

  • Use economic critical thinking skills.
  • Understand the importance of efficiency, equity, growth, and stability in economic policy.
  • Answer the economic questions of: what gets produced? How is it produced? Who gets what is produced?
  • Interpret and use demand and supply to predict outcomes in a perfectly competitive market.
  • Identify macroeconomic concerns.
  • Define and interpret opportunity cost.
  • Relate opportunity cost to a production possibilities curve and to comparative advantage.
  • State the factors that shift supply and demand.
  • Distinguish the difference between a change in demand and a change in quantity demanded.
  • Understand the importance of rationing in any economic system.
  • Define inflation and unemployment.
  • Explain the difference between micro and macroeconomics.

Unit 2
Overview
Macroeconomics deals with the aggregate economy. Total production of goods and services (GDP) for the nation is measured and the ability to produce more in the future (economic growth) are discussed in this unit. Unemployment and inflation are two other aggregate measures for the nation that are discussed. Finally, fiscal policy is introduced, along with a discussion of the money supply. The material in Unit 2 is designed to help you understand the critical thinking skills that allow economist to analyze a wide variety of social issues.

You should utilize extra care and instructor contact in this section. Many students find probability one of the most difficult sections of the course. Consult the course instructor as soon as possible when questions arise. Remember: the economic cave can be very dark at times.

Chapter 6: Measuring National Output and National Income
Chapter 7: Unemployment, Inflation, and Long-Run Growth
Chapter 8: Aggregate Expenditure and Equilibrium Output
Chapter 9: Government and Fiscal Policy

Outcomes
Upon completion of this unit, you should be able to

  • Explain the impact of long-run productivity growth, the business cycle and unemployment on the economy.
  • Identify different types of unemployment and solutions to each.
  • Define inflation and identify different measures of inflation GDP deflator and the consumer price index.
  • Determine the equilibrium aggregate output for the economy.
  • Explain the importance of government in the macro economy.
  • Explain the impact of long-run productivity growth, the business cycle, and unemployment on the economy.

Unit 3
Overview
Macroeconomics deals with the aggregate economy. Total production of goods and services (GDP) for the nation is measured and the ability to produce more in the future (economic growth) is discussed. Unemployment and inflation are two other aggregate measures for the nation that are discussed. Finally fiscal policy is introduced along with a discussion of the money supply. These issues were also discussed in Unit 2.

Unit 3 examines how the money supply is controlled by the Federal Reserve. The relationship between the money supply and GDP is examined. The material in Unit 3 is designed to help you understand the critical thinking skills that allow economist to analyze a wide variety of social issues.

Chapter 10: The Money Supply and the Federal Reserve System
Chapter 11: Money Demand and the Equilibrium Interest Rate
Chapter 12: Aggregate Demand in the Goods and Money Markets
Chapter 18: Alternative Views in Macroeconomics*

*To best understand Chapter 18 it is recommended you read Chapter 13 and 16.

Outcomes
Upon completion of this unit, you should be able to

  • Demonstrate the importance of money in our economic system.
  • Understand the relationship between money and GDP.
  • Explain the relationship between the money supply and the interest rate.
  • Describe the links between the goods market and the money market.
  • Understand the time lags associated with monetary and fiscal policy.
  • Show how the economy determines equilibrium income.
  • State the three distinguishing characteristics of money.
  • Compute and interpret the money multiplier.
  • Understand how equilibrium is determined in the money market.
  • Define expansionary and contractionary policy.
  • Define the aggregate demand curve.
  • Explain the difference between Keynesian, Monetarism, and New Classical economics.

Grading Criteria for Activities

Assignment Possible Points
Unit 1 Exam 100 points
Unit 2 Exam 100 points
Unit 3 Exam 100 points
Written Assignments 169 points
Quizzes 60 points
Discussions 60 points
Total: 589 points

Grading Scale

A 90% - 100%
B 80% - 89%
C 70% - 79%
D 60% - 69%
F 0% - 59%

 

Footer Anchor