By the end of this course, students will be able to
- Describe national income accounting.
- Demonstrate their understanding of the extended Keynesian income-expenditure model algebraically and diagrammatically.
- Explain the creation and role of the Money in the economy.
- Derive the IS and LM curves from equilibria in the asset and goods markets.
- Evaluate the relationship between interest rates and income using IS-LM analysis.
- Evaluate the relationship between prices and income using AS-AD analysis.
- Use the IS-LM and AD-AS models to analyze a variety of fiscal and monetary policy choices.
- Use economic analysis to evaluate current social and political issues and policies
- Differentiate between Keynesian theory and Classical theory.
- Explain and compare the impacts of monetary policy and fiscal policy in a closed economy.
- Explain and compare the impacts of monetary policy, fiscal policy and exchange rate policy in an open economy.
- Explain labor market and Phillips-curve.
- Analyze Phillips curve, Okun's Law and basic macroeconomic variables.
- Apply macroeconomics to current policy issues.