Economics I Sylabus


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Macroeconomics looks at the big picture of the performance of the national economy and its links to the global economy.

This course is designed to examine many basic tools economists use, such as the economic perspective, fundamental concepts, graphing skills, and an overview of the interrelated components of the United States economy.

It explains the importance of supply and demand, economic measures, growth, employment and inflation, and how these relate to the business cycle and the health of the economy. It develops the knowledge of aggregate expenditures and aggregate supply and demand, which have a specific macroeconomic point of reference.

In addition to issues affecting the United States, the course examines various international issues important in today's global economy.

Includes 10 hours of 1-on-1 live, on demand instructional support from SMARTHINKING.

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Economics I Sylabus

  1. 1. Macroeconomics Course Text and Study Guide Text: McConnell, Campbell R. and Stanley L. Brue. Macroeconomics: Principles, Problems, and Policies, 17th edition. McGraw-Hill, 2008. ISBN 0-07-327308-2. Study Guide: McConnell-Brue: Study Guide for use with Macroeconomics, 17th Edition. McGraw-Hill, 2008. ISBN 0390863246 Course Description Macroeconomics analyzes the performance of the national economy and its links to the global economy. This course is designed to examine many aspects of the economy from an aggregate perspective. Basic tools of economists are described, and an overview of the interrelated components of the United States’ economy is included. Supply, demand, economic measures, growth, employment, and inflation, as they relate to the business cycle and the health of the economy, are examined. The relationship between aggregate expenditures and aggregate supply is analyzed. The roles of fiscal policy, money, banks, and monetary policy in the economy are discussed along with examining the role politics and the Federal Reserve have on economic outcomes. Other topics include the deficit, surplus, national debt, and the U.S. Social Security system. Throughout the course, various international issues in today’s global economy are presented. Course Objectives After completing this course, students will be able to: • Identify and apply relevant terminology and concepts to economic issues and problems. • Compare and contrast the market system of economics with other systems. • Analyze and synthesize the public and private sectors of the U.S. economy. • Explain and synthesize the components of the National Income and Product Accounts. • Describe the macroeconomic goals and problems. • Analyze and synthesize short-run and long-run models of macroeconomic activity. • Analyze government macroeconomic policy tools, and explain how they are used to stabilize the macroeconomy. • Compare and contrast various macroeconomic theories. • Analyze and synthesize international economic activity, and use the results to predict the impact on U.S. macroeconomic activity.
  2. 2.   Course Prerequisites There are no prerequisites to take Macroeconomics.  Important Terms In this course, different terms are used to designate tasks: • Exercise: A non-graded quiz to assist you in practicing the skills discussed in a topic. • Exam: A graded online test.  Course Evaluation Criteria The graded exams for Topics 1-19 are worth 60 points each. The maximum a student can earn in the course is 1,140 points. At the end of the course, each student will receive the number of points earned. The student’s final letter grade is determined by the corresponding institution’s grading scale. Course Topics and Objectives Topic Lesson Topic Subtopics Objectives 1 Limits, • Economic Reasoning and • Identify and describe three Alternatives, and Theory interrelated features of how Choices • Concepts economists think about the world. • Graphs • Differentiate between a model and a theory. • Define consumption, production, and scarcity, and describe their relationship. • Describe how markets and trade impact society in macroeconomic terms. • Define and give an example of opportunity cost. • Represent a relationship between two variables with a graph. 2 The Market System • Decision Makers in the • Describe how household income and Circular Flow United States’ economy spending affects the macro • How Households, economy. Businesses, and the • Summarize different types of Government Interact businesses, and describe potential • The United States in the strengths and weaknesses in each. Global Economy • Describe three ways in which the • Circular Flow government guides and influences in the macroeconomy. • Describe how households and businesses interact in a market economy. • Analyze how the government interacts with other sectors of the economy. • Explain how globalization impacts competition. • Illustrate the principle of comparative advantage.
  3. 3. • Draw a representation of the Circular Flow Model with its various components. 3 Demand, Supply, • Supply • Describe the inverse relationship and Market • Demand between price and demand. Equilibrium • Equilibrium • Describe the relationship between prices and supply, and offer three determinants of demand. • Illustrate, with a real-life example, how to determine market equilibrium. • Graphically demonstrate the effects of price ceilings and price floors. 4 The U.S. Economy: • U.S. Households • Analyze public and private sectors Private and Public • U.S. Businesses and of the United States’ economy. Sectors Business Organization • Synthesize public and private • Economic Role of sectors of the United States’ Government economy. • Government Budget • Explain the economic role of Outlays and Receipts government. 5 The United States • International Trade • Analyze international economic in the Global • Comparative Advantage activity. Economy • Exchange Rates • Use the results of the • Trade Organizations and aforementioned analysis to predict Agreements the impact on U.S. macroeconomic activity. • Describe comparative advantage using a real-life example. • Explain the impact that trade organizations and agreements have on the global economy. 6 Measuring • Gross Domestic Product • Explain and synthesize the Economic (GDP) components of the National Income Outcomes • Gross National Product and Product Accounts. (GNP) • Define the Gross Domestic Product • The Expenditure and describe its relationship to the Approach Gross National Product. • National Income • Define the Gross National Product. Accounting and Other • Describe the Expenditure Approach. Measures 7 Introduction to • Employment • Describe the macroeconomic goals Economic Growth • Unemployment and problems. and Instability • Inflation • Define three types of • Growth unemployment. • Explain how economists measure unemployment. • Describe full employment and its impact on productivity and growth. • Differentiate between the social, economic, and personal cost of unemployment. • Define inflation. • Give examples of attempts to measure how inflation and unemployment relate. 8 Basic • Basic Macroeconomic • Analyze and synthesize short-run Macroeconomic Relationships and long-run models of Relationships macroeconomic activity. 9 The Aggregate • The Aggregate • Define equilibrium Gross Domestic Expenditures Expenditures Model Product. Model • Equilibrium GDP • Describe how net exports and • The Multiplier Model government purchases impact • Factors Influencing equilibrium.
  4. 4. Equilibrium Gross • Identify two ways the multiplier Domestic Product model can be misleading. • Describe what causes the level of Gross Domestic Product to change. 10 Aggregate Demand • Aggregate Demand and • Define the three parts of the and Aggregate Supply Framework aggregate-demand/aggregate Supply • Components of supply framework. Aggregate Demand • Describe the streams of spending • Components of that relate to aggregate demand Aggregate Supply with a focus on investment and consumption. • Compare and contrast long-run and short-run aggregate supply. • Describe examples of supply-side policy. 11 Fiscal Policy, • Fiscal Policy • Define fiscal policy and its role to Deficits, and Debt • Major Federal fight inflation and ensure full Government Spending employment. Programs and Tax • Differentiate between major federal Sources government spending programs and • Government Spending, tax sources. Taxation, and Fiscal • Describe how government spending Policy can help fight inflation and relate • Supply-Side and the risks of government Demand-Side Fiscal intervention. Policy • Compare and contrast demand-side versus supply-side fiscal policies. 12 Money and • How the Banking System • Describe the essential functions of Banking Functions the demand for money. • Financial Institutions • Describe the essential functions of banks pertaining to the macroeconomic perspective. • Differentiate between various types of financial institutions. 13 Money Creation • Money: Its Creation and • Summarize what money is. Supply • Explain how money was developed, creating a diagram or table to show how banks create money. • Compare and contrast M1, M2, and M3, and discuss how money is supplied. • Describe the determiners of the demand for money. 14 Interest Rates and • Interest Rates • Analyze the interest rate, and Monetary Policy • Monetary Policy explain how it is used to stabilize the macroeconomy. • Analyze the monetary policy, and explain how it is used to stabilize the macroeconomy. 15 Extending the • Short-run Aggregate • Define short-run aggregate supply. Analysis of Supply • Define long-run aggregate supply. Aggregate Supply • Long-run Aggregate • Explain the Phillips Curve. Supply • The Phillips Curve 16 Economic Growth • Economic Growth • Analyze and synthesize various models of economic growth. 17 Disputes Over • Classical Theory • Distinguish between the Classical Macro Theory and • Keynesian Theory and Keynesian Theories. Policy • Monetarism • Explain monetarism. • New Classical Theory • Compare and contrast the Classical • Rules vs. Discretion and the New Classical Theories. • Explain what is meant by “Rules vs.
  5. 5. Discretion.” 18 International Trade • International Trade • Analyze and synthesize international economic activity, and use the results to predict the impact on U.S. macroeconomic activity. 19 Exchange Rates, • Exchange Rates • Distinguish between passive and the Balance of • Types of Deficits structural deficits. Payments, and • Surpluses and Debt • Differentiate between real and Trade Deficits nominal deficits. • Give an example of how economic and political conditions inform how one should judge surpluses and debt. • Analyze the problem, and compare and contrast two plans for solving the projected Social Security shortage. Review Review • Macroeconomics None Concepts • Economic Decision Makers • Supply and Demand • Economic Outcomes • Measuring Economic Outcomes • The Business Cycle • Growth and Unemployment • Inflation • Inflation and Unemployment • Aggregate Expenditures • Aggregate Supply and Demand • Fiscal Policy • Monetary and Financial Institutions • Monetary Policy and the Federal Reserve • Deficits and Surpluses • National Debt