EC 202 Introduction to Macroeconomics

Lecture Hours: 4
Credits: 4

Introduces macroeconomic theories of how a capitalist society operates. Covers the concepts of aggregate supply and demand, fiscal and monetary policies, international trade, money and banking, the Federal Reserve, business cycles, poverty, unemployment and inflation.

Prerequisite: Placement into WR 115 (or higher), or completion of WR 090 (or higher); and completion of MTH 095 (or higher); or consent of instructor. (All prerequisite courses must be completed with a grade of C or better.)
Student Learning Outcomes:

Demonstrate a working knowledge of the vernacular of macroeconomics.
Use macroeconomics tools (e.g. graphical analysis and multipliers)
Explain the forces that affect consumption, investment, net exports, trade deficits, budget deficits and the national debt.
Demonstrate the ability to contemplate and analyze social problems.
Explain money creation, business cycles, unemployment, and inflation.

Statewide General Education Outcomes:

Apply analytical skills to social phenomena in order to understand human behavior.
Apply knowledge and experience to foster personal growth and better appreciate the diverse social world in which we live.

Content Outline

Overview of Macroeconomics
- Major macroeconomic problems and issues
  - Economic growth
  - Unemployment
  - Inflation
  - Business cycles
  - Poverty
- The birth of macroeconomics and the great depression
- Supply and demand
- The public sector
Why Do Economists Use Models
Aggregate Demand and the Simple Keynesian Model
- Consumption
- Investment
- Government spending and taxes
- Net exports
- Economic growth
Fiscal Policy Options
- Fiscal policy
- Budget deficits (surplus) and the national debt
Trade Deficits and Surpluses
- The determination of exchange rate
- Effect of monetary policy
Financial Sector
- Money
- Banks
- Money creation
- Investment
Monetary Policy
- The Federal Reserve system
- The Federal Reserve, interest rate targeting and the supply of an elastic currency
- Markets for stock, bond, and futures and their effect on the productive sector
- Theories of interest rate determination
  - Federal Reserve interest rate targets vs. the loanable funds market
Theories of Business Cycles
- Theory(s) of unemployment
- Theory(s) of poverty
Theories of Inflation
Solutions to Major Social Problems Using Macroeconomic Models