Introduction to MacroEconomics - 1st year
Concentrated introductory course providing a general understanding of basic macro-economic concepts. Specifically, it acquaints the beginning student with an appreciation of the functions of economic systems, including various approaches to the organization of production and allocation of resources, and of policies to achieve national economic goals. These include the determination of national income, inflation, recession, unemployment, taxation, labor unions, environmental pollution, energy and economic growth.
Objectives:
At the end of this course you will be able to:
1. Explain the basic economizing problem of scarce resources and unlimited wants.
a. Identify the four resource categories.
b. Create a production possibilities table.
c. Create a production possibilities curve.
2. Construct the basic supply and demand curves in a purely competitive market model.
a. Graph a demand curve in a purely competitive market model.
b. Graph a supply curve in a purely competitive market model.
c. Graph supply and demand together and determine equilibrium price and quantity in
a purely competitive market model.
3. Explain the interaction of the public and private sectors within a mixed economy.
a. Describe the breakdown of households as income receivers and spenders.
b. Describe the breakdown of the business population.
c. Describe the "isms": capitalism, fascism, communism, and socialism.
4. Explain the workings of the market system, including the four basic economic sectors: households, business, government, and export-import.
a. Apply the formulas for the Average Propensity to Consume, Average Propensity to
Save, Marginal Propensity to Consume, and Marginal Propensity to Save.
b. Describe the three types of business firms.
c. Describe the economic role of government.
d. Describe world trade agreements and free-trade zones.
5. Calculate the national income accounts.
a. Calculate Gross Domestic Product using the expenditures and income approach.
b. Describe the difference between GDP and real GDP.
6. Explain the instability within the macro economy.
a. Describe the phases of the business cycle.
b. Describe the four types of unemployment.
c. Calculate the rate of unemployment.
d. Calculate the rate of inflation.
7. Explain the difference between the federal deficit and public debt and the impact
of fiscal policy on the macro economy.
a. Define the federal deficit.
b. Define the public debt.
c. Describe the economic implications of the growing public debt.
d. Describe the use of discretionary fiscal policy.
Topics:
Course topics will include the following:
1. The Basics of Economic Analysis
2. Introduction to Macroeconomics
3. The Macroeconomics of Product Markets
4. The Macroeconomics of Factor Markets
Method of Instruction:
1. Lecture
2. Class discussion
3. Individual, paired, and small-group exercises
4. Use of library for research projects
5. Use of audio-visual media resources (videos, films, transparencies)
6. Use of the internet for research projects
Types of Assignments:
1. Students must complete assignments from the text and other sources
2. Students must be able to research and complete the assignments, which will include library, Internet, and other media research.
Sample Text:
1. Dimand, Robert W. (2008). "macroeconomics, origins and history of," The New Palgrave Dictionary of Economics, 2nd Edition.
2. Sullivan, arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall.
