ECON 215 - Principles of Macroeconomics

3 Credit: (3 lecture, 0 lab, 0 clinical) 3 Contact Hours:

This course provides an introduction to the basic tools and concepts of macroeconomic analysis. The course materials focus on the measurement of the national economy, gross domestic product, inflation and unemployment, and the principles for controlling the economy through fiscal, and monetary policy.
Semesters Offered: fall and spring semesters

Course Goals/ Objectives/ Competencies:
Goal 1: Apply model of supply and demand within goods and services markets.

Explain the laws of demand/supply.
Identify determinants for changes in quantity demand/supply and changes in demand supply.
Graph supply and demand in context of real-world market events.

Goal 2: Discuss economic theories about the role of government on a nation’s economy.

Compare economic systems based on what, who, and how goods are produced.
Identify basic tradeoffs societies face between efficiency and equity.
Differentiate Keynesian, Classical/Neoclassical, Supply Side, Monetarist, and emerging theories.

Goal 3: Understand role of Fiscal Policy on stabilizing the national economy.

Discuss role of taxation and spending to control business cycle deviations.
Identify local, state, federal governments main sources of tax revenue.
Discuss how government policy incentivizes consumer and producer decision making.
Explore ways governmental decisions on taxation, spending, protections, and regulation may impact the macroeconomy.

Goal 4: Understand role of Federal Reserve and Monetary Policy in establishing stable growing economy.

Explain impact of Fractional Reserve System regarding deposits and loans.
Discuss role of Federal Reserve on stable prices, low unemployment, and economic growth.
Explain how purchases and sale of Treasury Bonds impact interest rates.
Recognize causes and consequences of Financial Crisis of 2008.

Goal 5: Interpret basic economic indicators as they relate to economic growth.

Understand the business cycles in terms of inflation and unemployment.
Distinguish between natural and cyclical unemployment.
Calculate simple examples of basic economic indicators such as GDP, per capita GDP, unemployment rates, economic growth rate, inflation, and Consumer Price Indexes.
Identify factors that contribute to economic growth.

Goal 6: Apply economic models in context of real-world market events.

Label economic models correctly.
Explain instances of current market activity using economic theory and models.
Interpret the relationship between households, business firms on circular flow model.
Apply economic models such as LRAS, AE, Keynesian Cross, Money Market, Phillips Curve, Loanable Funds Market, Money Supply curve.