Business Conditions Analysis
Instructor: Dr. Michael Ellis, BSA 472, (330) 6721091, email@example.com
Office Hours: MW 10:00amnoon and by appointment.
Course Objectives: The main objectives of the course are to provide a sufficient
understanding of macroeconomic data, economic institutions, and
macroeconomic principles to understand news and analysis about
the economy encountered in the business media. The course will
help you understand the environment in which business
Text: Macroeconomic Essentials: Understanding Economics in the News, by Peter
Kennedy, second edition, MIT Press.
Online Materials: http://research.stlouisfed.org/publications/net National economic
trends of the U.S. Has many useful time series graphs.
economic trends with a focus on the industrialized countries.
http://research.stlouisfed.org/publications/mt Monetary and interest
rate trends and monetary policy indicators of the Federal Reserve.
http://www.bls.gov Detailed data concerning national income
accounts, labor markets, and price indices.
www.economagic.com Compiles U.S. economic data from many
official sources and has the capability to make time series and
scatter plot graphs.
www.nber.org Historical data on U.S. business cycles.
www.conferenceboard.org Businessfocused economic data.
Contains the widely followed Index of Leading Economic
Grading: Exam 1: February 18, 30% of course grade; Exam 2: March 25, 30% of
course grade; class participation, 10% of course grade; Final Exam: May
13, 5:45pm8:00pm, 30% of course grade.
Course Outline: I. Introduction
a. Overview of Course (Ch. 1)
b. Stylized Facts of the U.S. Economy
c. Review of Useful Ideas from Managerial Economics
II. Measurement of Economic Indicators
a. GDP and Inflation (Ch. 2)
b. Unemployment (Ch. 3)
III. Economic Growth (Ch. 6)
IV. Business Cycle Analysis
a. Aggregate Demand Shocks (Ch. 4)
b. Aggregate Supply Shocks (Ch. 5)
V. Fiscal Policy
a. Crowding Out (Ch. 7)
b. Budget Deficits and the National Debt (Ch. 14)
VI. Monetary Policy
a. The Money Supply Process (Ch. 8)
b. The Quantity Theory of Money (Ch. 9)
c. Interest Rates (Ch. 10, 11)
a. The InflationUnemployment Relationship (Ch. 12)
b. The Causes of Inflation in the Long Run (Ch. 13)
VIII. The International Sector
a. The Balance of Payments (Ch. 15)
b. Economic Policy in an Open Economy (Ch. 16)
c. Exchange Rates (Ch. 17, 18)
a. A Review of Important Ideas (Ch. 1)