ECON 201 Macroeconomics

General

• Explain the basic economic problem (scarcity, opportunity cost, choice)
• Explain markets and price determination (determinants of supply and demand)
• Explain measurements of aggregate economic performance (GDP and its components, real vs. nominal values, unemployment, inflation, income and expenditure approaches to GDP, and limitations)
• Apply the model of aggregate supply and aggregate demand. (potential GDP, economic growth and productivity, determinants and components of AS and AD, the multiplier effect)
• Explain money and financial markets (money, money creation, financial institutions, financial instruments)
• Explain monetary and fiscal policies (tools of monetary policy, automatic and discretionary fiscal policies, public debt)
• Explain policy debates (policy lags and limitations, rules vs. discretion, long run vs. short run, expectations, sources of macroeconomic instability)
• Explain elements of International Economics (balance of payments, exchange rate systems, open-economy macroeconomics).