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Money and Prices in the Long Run and Open Economies
- Analyze the long-run determinants of trade balances, the real exchange rate and other real and nominal variables.
- Examine what money is and how the Federal Reserve controls the quantity of money.
- Analyze the cause and cost of inflation.
- Evaluate an open economyâs interactions with the rest of the world.
Short-Run Economic Fluctuations
- Assess how aggregate demand or short-run aggregate supply shifts cause fluctuations in output.
- Evaluate how monetary and fiscal policies affect aggregate demand.
- Analyze the relationship between inflation and unemployment.
Introduction to Macroeconomics
- Identify how society manages its scarce resources and why economists are viewed as both scientists and policymakers.
- Explain how the economy coordinates interdependent economic actors through the market forces of supply and demand.
- Explain the interaction among households, government, and business displayed in the circular flow model.
- Demonstrate the difference between a nationâs income and its cost of living.
Current Macroeconomic Policy
- Assess governmentâs role in six classic debates in macroeconomics.
The Real Economy in the Long Run
- Explain the long-run determinants of both the level and the growth rate of real GDP per person.
- Demonstrate how savings and investment in capital goods affects the production of output.
- Analyze the concepts of time value of money and risk management in the valuation of a financial asset.
- Analyze how full utilization of our labor resources improves the level of production and our standard of living.
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