Students examine how the economy behaves at the aggregate level and how national income is measured and determined. Topics include an overview of macroeconomics; measuring gross domestic product, inflation and unemployment; demand including the multiplier process; supply, business cycles, long-term growth; money, banking and monetary policy; inflation; interest rates; stagflation; deficits and fiscal policy; exchange rates and balance of payments; exchange rate policy; purchasing power and interest rate parity.
- 1. Understand the forces determining macroeconomic variables such as inflation, unemployment, interest rates, and the exchange rate;
- 2. Be able to formulate and assess macroeconomic policy suggestions;
- 3. Be familiar with macroeconomic terminology, such as the multiplier, monetarism, the natural level of unemployment, and fiscal policy
- 4. Be capable of interpreting and evaluating media reports on the macroeconomy.
Books for this Course
- Kennedy, Peter. Macroeconomic Essentials: Understanding Economics in the News. 3rd Edition. Cambridge, MA: MIT Press, 2010.
- September 2015
- January 2016