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Macroeconomics [Deprecated]

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Course Contents

Learning Outcomes

Faculty Resources

PowerPoints
Assignments

Module: Economic Thinking

Why It Matters: Economic Thinking
Outcome: What Is Economics?
Video: Scarcity and Choice
Reading: Understanding Economics and Scarcity
Video: Resources
Reading: The Concept of Opportunity Cost
Reading: Labor, Markets, and Trade
Video: Micro vs. Macro
Reading: Microeconomics and Macroeconomics
Outcome: Economic Models
Reading: Using Economic Models
Outcome: Math in Economics
Reading: Purpose of Functions
Reading: Solving Simple Equations
Outcome: Graphs in Economics
Video: Graph Review
Reading: Creating and Interpreting Graphs
Reading: Interpreting Slope
Reading: Types of Graphs
Problem Set: Math in Economics
Problem Set: Graphs in Economics
Putting It Together: Economic Thinking
Glossary: Economic Thinking

Module: Choice in a World of Scarcity

Why It Matters: Choice in a World of Scarcity
Outcome: The Cost of Choices
Reading: Budget Constraints and Choices
Reading: Calculating Opportunity Cost
Outcome: The Production Possibilities Frontier
Video: Society's Production Possibilities Curve
Reading: The Production Possibilities Frontier
Reading: Productive Efficiency and Allocative Efficiency
Outcome: Economic Rationality
Reading: Rationality and Self-Interest
Reading: Rationality in Action
Outcome: Marginal Analysis
Reading: Marginal Analysis
Outcome: Positive and Normative Statements
Video: Positive and Normative Analysis
Reading: Positive and Normative Statements
Problem Sets: Budget Constraints and Opportunity Cost
Problem Set: Marginal Analysis
Putting It Together: Choice in a World of Scarcity
Glossary: Choice in a World of Scarcity
Discussion: Is Economics a Science?

Module: Supply and Demand

Why It Matters: Supply and Demand
Outcome: Economic Systems
Reading: Economic Systems
Outcome: Demand
Reading: What Is Demand?
Video: Change in Demand vs. Change in Quantity Demanded
Reading: Factors Affecting Demand
Worked Example: Shift in Demand
Reading: Summary of Factors That Change Demand
Simulation: Demand for Food Trucks
Self Check: Demand
Outcome: Supply
Reading: What Is Supply?
Reading: Factors Affecting Supply
Worked Example: Shift in Supply
Reading: Summary of Factors That Change Supply
Simulation: Supply of Food Trucks
Self Check: Supply
Outcome: Equilibrium
Reading: Equilibrium, Surplus, and Shortage
Video: Market Equilibrium
Reading: Changes in Equilibrium
Worked Example: Supply and Demand
Simulation: Food Trucks and Changes in Equilibrium
Self Check: Equilibrium
Problem Set: Supply and Demand 1
Problem Set: Supply and Demand 2
Problem Set: Supply and Demand 3
Putting It Together: Supply and Demand
Glossary: Supply and Demand
Discussion: Supply and Demand

Module: Elasticity

Why It Matters: Elasticity
Outcome: Explaining Elasticity
Reading: Introduction to Elasticity
Video: Price Elasticity of Demand
Reading: Examples of Elastic and Inelastic Demand
Outcome: Calculating Price Elasticity
Reading: Calculating Percentage Changes and Growth Rates
Reading: Calculating Price Elasticities
Reading: Three Categories of Elasticity
Reading: Polar Cases of Elasticity
Outcome: Other Elasticities
Reading: Other Types of Elasticity
Worked Example: Cross-Price Elasticity of Demand
Self Check: Other Elasticities
Outcome: Price Elasticity and Total Revenue
Reading: Elasticity and Total Revenue
Reading: Elasticity, Costs, and Customers
Problem Set: Elasticity
Putting It Together: Elasticity
Glossary: Elasticity
Discussion: Price Elasticity of Demand

Module: Government Action

Why It Matters: Government Action
Outcome: Price Ceilings
Reading: Price Ceilings
Outcome: Price Floors
Reading: Price Floors
Case in Point: Organic Foods
Self Check: Impact of Binding Price Ceilings or Price Floors
Outcome: Tax Incidence
Reading: Tax Incidence
Outcome: Taxation
Reading: Financing Government
Reading: Types of Taxes
Reading: Taxation
A Worked Example: Price Controls
Putting It Together: Government Action
Glossary: Government Action
Discussion: Junk Food and Government Action

Module: Surplus

Why It Matters: Surplus
Outcome: Consumer, Producer, and Total Surplus
Reading: Surplus
Outcome: Surplus and Inefficiency
Reading: Inefficiency of Price Floors and Price Ceilings
Putting It Together: Surplus
Glossary: Surplus
Discussion: Efficiency of Free Markets

Module: Macroeconomic Measures: GDP and Unemployment

Why It Matters: GDP and Unemployment
Outcome: Economic Indicators
Reading: The Macroeconomic Perspective
Outcome: Calculating GDP
Reading: Calculating GDP
Reading: Measuring Total Output
Outcome: GDP and Income
Reading: Alternative Ways to Measure the Economy
Reading: Gross National Product: An Alternative Measure of Output
Outcome: The Unemployment Rate
Reading: Unemployment
Reading: Calculating Unemployment
Reading: Criticisms of Measuring Unemployment
Reading: Difficulties Measuring Unemployment
Outcome: Types of Unemployment
Reading: Types of Unemployment
Reading: Patterns of Unemployment
Reading: Changes in Unemployment over the Short Run
Reading: Changes in Unemployment over the Long Run
Putting It Together: Macroeconomic Measures of Performance
Glossary: Macroeconomic Measures of Performance
Discussion: State of the Macroeconomy

Module: Macroeconomic Measures: Inflation and Price Indexes

Why It Matters: Inflation and Price Indexes
Outcome: Rate of Inflation
Reading: Introduction to Inflation
Reading: Computing the Rate of Inflation
Reading: Tracking Inflation
Reading: How Changes in the Cost of Living are Measured
Outcome: Consequences of Price Instability
Reading: The Confusion Over Inflation
Reading: Why Care about Inflation?
Outcome: Price Indexes
Reading: Price Indexes
Reading: The CPI and PCE
Outcome: Price Indexes and Real Data
Reading: Nominal and Real Values
Reading: Computing Real Values Using Price Indexes
Outcome: Defining the GDP Price Index
Reading: The Implicit Price Deflator
Outcome: Nominal and Real GDP
Reading: Real GDP
Reading: Converting Nominal to Real GDP
Putting It Together: Inflation and Price Indexes
Glossary: Inflation and Price Indexes

Module: Macro Workings

Why It Matters: Macro Workings
Outcome: The Business Cycle
Reading: Tracking Real GDP Over Time
Reading: Phases of the Business Cycle
Reading: Overheating and Stagflation
Video: The Business Cycle
Self Check: The Business Cycle
Outcome: Defining Economic Growth
Reading: Introduction to Economic Growth
Reading: Economic Growth
Reading: The Significance of Economic Growth
Reading: Rule of Law and Economic Growth
Reading: Labor Productivity and Economic Growth
Reading: The "New Economy" Controversy
Reading: Components of Economic Growth
Reading: Determinants of Economic Growth
Self Check: Sources of Economic Growth
Outcome: The Aggregate Demand-Aggregate Supply Model
Reading: The Aggregate Demand-Aggregate Supply Model
Reading: Macroeconomic Perspectives on Demand and Supply
Video: Overview of Aggregate Demand-Aggregate Supply Model
Reading: Building a Model of Aggregate Supply and Aggregate Demand
Reading: Aggregate Demand
Reading: Shifts in Aggregate Supply
Reading: The Long Run and the Short Run
Reading: Shifts in Aggregate Demand
Reading: Growth and Recession in the AS-AD Diagram
Reading: The AS-AD Model and Economic Growth
Simulation: Spend or Save—Government Edition
Self Check: The AD-AS Model and Growth, Recession, Expansion, and Inflation
Putting It Together: Macro Workings
Glossary: Macro Workings
Discussion: Business Cycle

Module: Keynesian and Neoclassical Economics

Why It Matters: Keynesian and Neoclassical Economics
Outcome: Keynesian Economics and the AD-AS Model
Reading: Introduction to the Keynesian Perspective
Reading: Keynes' Law and Demand
Reading: Aggregate Demand in Keynesian Analysis
Reading: The Building Blocks of Keynesian Analysis
Reading: The Phillips Curve
Reading: The GDP Gap
Reading: The Keynesian Perspective on Market Forces
Outcome: The Expenditure Output Model
Reading: The Expenditure-Output Model
Reading: Using an Algebraic Approach to the Expenditure-Output Model
Reading: Equilibrium and The Expenditure-Output Model
Reading: The Multiplier Effect
Outcome: Neoclassical Economics and the AD-AS Model
Reading: Introduction to the Neoclassical Perspective
Reading: Say's Law and the Macroeconomics of Supply
Reading: The Neoclassical Perspective and Aggregate Demand and Supply
Reading: The Neoclassical Perspective and Flexible Prices
Outcome: Applying the Keynesian and Neoclassical Perspectives
Reading: Keynes' Law and Say's Law in the AD/AS Model
Video: Macroeconomic Perspectives
Reading: Speed of Macroeconomic Adjustment
Reading: Balancing Keynesian and Neoclassical Models
Putting It Together: Keynesian and Neoclassical Economics
Glossary: Keynesian and Neoclassical Economics
Discussion Topic: Keynesian vs. Neoclassical Economics

Module: Fiscal Policy

Why It Matters: Fiscal Policy
Outcome: The Federal Budget
Reading: Introduction to Government Budgets and Fiscal Policy
Reading: Federal Government Spending
Reading: Federal Taxes
Outcome: State and Local Budgets
Reading: State and Local Government Spending
Reading: State and Local Taxes
Outcome: Fiscal Policy and Tax Rates
Reading: Fiscal Policy
Outcome: Expansionary and Contractionary Fiscal Policies
Reading: Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
Outcome: Discretionary and Automatic Fiscal Policy
Reading: Fiscal Policy and Stabilizers
Reading: Counterbalancing Recession and Boom
Reading: The Standardized Employment Deficit or Surplus
Outcome: Changes in Tax and Spending
Reading: Tax Changes
Video: Tax Cuts During the Recession
Putting It Together: Fiscal Policy
Self Check: Changes in Tax and Spending
Glossary: Fiscal Policy
Discussion: Economic Impact of Lower Corporate Tax Rate

Module: Monetary Policy

Why It Matters: Monetary Policy
Outcome: Defining Money
Reading: Introduction to Money and Banking
Reading: Defining Money by Its Functions
Reading: Measuring Money: Currency, M1, and M2
Video: What is Money?
Self Check: Defining Money
Outcome: Defining Credit
Reading: Credit
Outcome: Banks
Reading: The Role of Banks
Outcome: Lending and Money Creation
Reading: How Banks Create Money
Reading: Money Creation
Outcome: The Federal Reserve
Reading: The Federal Reserve Banking System and Central Banks
Reading: The Money Multiplier and a Multi-Bank System
Outcome: Defining Monetary Policy
Reading: Monetary Policy
Reading: Goals of Monetary Policy
Reading: Tools of Monetary Policy
Outcome: Interest Rates
Reading: Defining Interest Rates
Reading: Federal Funds, Prime, and Discount Interest Rates
Outcome: The Equilibrium Rate
Reading: Demand and Supply in Financial Markets
Reading: The Demand for Money
Outcome: Open Market Operations
Reading: Monetary Policy and Interest Rates
Outcome: Monetary Policy and GDP
Reading: Monetary Policy and Aggregate Demand
Putting It Together: Monetary Policy
Glossary: Monetary Policy
Discussion: Impact of Low Interest Rates on Monetary Policy

Module: Policy Application

Why It Matters: Policy Application
Outcome: Keynesian Policy Prescriptions
Reading: Keynesian View on Changes in Government Spending and Taxation
Reading: Liquidity Trap
Reading: The Expenditure Multiplier
Reading: Crowding Out
Outcome: Neoclassical Policy Prescriptions
Reading: Effects of Tax and Spending Policy from a Neoclassical Perspective
Reading: Supply-Side Economics
Reading: Policy Implications of the Neoclassical Perspective: Policy Lags
Reading: Policy Implications: No Phillips Curve Tradeoff
Reading: New Classical Economics and Rational Expectations
Reading: Ricardian Equivalence: How Government Borrowing Affects Private Saving
Reading: Policy Implications: Inflation, Recession, and Unemployment
Outcome: Real World Macro Policy Options
Reading: Introduction to Real World Macro Policy Options
Reading: Lessons from the 1970s
Reading: Crowding Out Revisited
Reading: Practical Problems with Discretionary Fiscal Policy
Putting It Together: Policy Application
Glossary: Policy Application
Discussion: Macropolicy

Module: Globalization, Trade and Finance

Why It Matters: Globalization, Trade and Finance
Outcome: Comparative and Absolute Advantage
Reading: Introduction to International Trade
Reading: Absolute and Comparative Advantage
Reading: Absolute Advantage
Reading: Intra-Industry Trade
Reading: Reducing Barriers to Trade
Outcome: Impact of International Trade
Reading: Demand and Supply Analysis of International Trade
Outcome: Impact of Government Regulations
Reading: Restrictions on International Trade
Reading: Justifications for Trade Restriction
Video: Types of Trade Restrictions
Case in Point: Outsourcing, Insourcing, and Employment
Outcome: Trade Policy and Agreements
Reading: The Tradeoffs of Trade Policy
Reading: How Trade Policy Is Enacted
Videos: Trade Agreements
Self Check: Trade Policy and Agreements
Outcome: Exchange Rates and International Finance
Reading: Exchange Rates and International Capital Flows
Reading: The Foreign Exchange Market
Reading: Strengthening and Weakening Currency
Reading: Demand and Supply Shifts in Foreign Exchange Markets
Outcome: The Balance of Trade
Reading: Macroeconomic Effects of Exchange Rates
Reading: Exchange-Rate Policies
Outcome: Globalization
Reading: Introduction to Globalization
Reading: Trade Winds
Simulation: International Trade
Putting It Together: Globalization, Trade and Finance
Self Check: Globalization
Glossary: International Trade
Discussion: Absolute and Comparative Advantage