Economics 231
Course Number and Title: Economics 231 – Principles of Macroeconomics
Catalog Description: An introduction to the behavioral science of economics which focuses on the aggregate behavior of households, firms and the government. Topics covered include gross domestic product, national income, economic growth, unemployment, inflation, the business cycle, fiscal policy and monetary policy, and international trade.
Learning Objectives: Upon successful completion of the course, the student should be able to demonstrate a basic understanding of news relating to the economy as a whole as reported in such publications as The Wall Street Journal; the economic implications of changes in government fiscal or monetary policy; how interest rates are determined and the role of interest rates in personal and corporate decision-making; and critically apply economic concepts when participating as a citizen in a democratic society. In particular, the students should be able to calculate equilibrium national income levels, calculate and use various multipliers, convert nominal values to real values, and use a graph to explain the impact of changes in fiscal and/or monetary policy on income and price levels. In addition, students should be able to use simple models of international trade to study the flow of goods between countries and discuss the costs of protectionism within the context of such models.
Specific Topics:
Required:
- Opportunity Cost and Production Possibilities Curves
- Demand, Supply and Determining Market Equilibrium Price and Quantity
- Measuring Domestic Output, Income, and the Price Level
- Unemployment, Inflation and Growth
- Building the Aggregate Expenditures Model
- Aggregate Expenditures: The Multiplier, Net Exports, and Government
- Fiscal Policy
- Money and Banking
- How Banks Create Money
- The Federal Reserve Bank and Monetary Policy
- Aggregate Supply and Demand
- International Trade
Optional:
- Alternative Macroeconomic Theory and Policy
- The Inflation-Unemployment Relationship
- Budget Deficits and the Public Debt
- Economic Growth
Current Textbook: Bade and Parkin, Foundations of Economics, Third Edition, Pearson, Addison-Wesley, 2007.
Evaluation: One or more tests will be given throughout the semester. Tests are multiple choice, true or false, or essay given at scheduled time with possible pop tests any day. Tests may cover any/or all material. Other types of evaluation such as library assignments, homework, written assignments and term papers may be used at the instructor’s discretion.
Curriculum Coordinator: Dr. Parker T. Ballinger