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8 – Week Course Outline
Please see theStudent Handbook to reference the University’sgrading
Introduction to Macroeconomics
LO 1: Describe the characteristics of demand and
supply, and apply the demand and supply model.
LO 2: Define real gross domestic product and identify the
phases of a business cycle.
LO 3: Define inflation and deflation, and explain how
each affects the price and economic growth of an economy.
LO 4: Articulate why the price-level changes and how it
can affect economic stability.
LO 5: Explain how unemployment is calculated and
measured in the United States.
LO 6: Demonstrate an understanding of the role of the
government in the economy.
LO 7: Identify the components of the macroeconomy and
relate them to the circular flow diagram. Describe the characteristics of
demand and supply, and apply the demand and supply model.
DQ1: Self Introduction and
DQ2: The three primary concerns in macroeconomic analysis.
Please submit your responses to DQ1 and DQ2 to the
LO 8: Describe the measurement of GDP using the
expenditure approach and the income approach.
LO 9: Explain the other measures of output and income
and learn their distinction from one another.
LO 10: Distinguish between the real and nominal values.
LO 11: Analyze the problems associated with using GDP
as a measure of well-being.
LO 12: Describe the neo-classical theory of national income.
DQ3:GDP as a measure of economic activity and
Please submit your response to DQ3 to the Forum
Quiz 1: Units 1 & 2
Unemployment and Inflation
LO 13: Define
the unemployment rate.
and distinguish between the different forms of unemployment.
the problems associated with the unemployment rate.
LO 16: Define
interpret, and calculate inflation rate and the consumer price index.
LO 17: Describe
the problems and biases associated with the consumer price index.
LO 18: Explain
the Phillips curve and the relationship between inflation and unemployment.
DQ4: Three types of unemployment
Please submit your response to DQ4 to the Forum
Quiz 2: Unit 3
Aggregate Demand and Supply
LO 19: Define
aggregate demand, graphically represent a hypothetical aggregate demand
curve, and identify the reasons for the negative slope of the demand curve.
LO 20: Distinguish
between a change in the aggregate quantity of goods and services demanded and
a change in aggregate demand.
LO 21: Define
“multiplier” and explain how to calculate it.
LO 22: Graphically
represent a hypothetical long-run aggregate supply curve and explain the
underlying connotations for natural levels of employment and output at
various price levels, given changes in aggregate demand.
LO 23: Graphically
represent a hypothetical short-run aggregate supply curve, explain why it
slopes upward, and explain why it may shift.
LO 24: Discuss
various explanations for wage and price stickiness.
illustrate what is meant by equilibrium in the short run and relate the
equilibrium to potential output.
LO 25: Explain
and graphically represent the consumption function and the saving function
explain the slopes of their respective curves, and explain their relationship
to each other.
LO 26: Compare
the current income hypothesis with the permanent income hypothesis.
LO 27: Discuss
two factors that can cause the consumption function to shift upward or
Research Paper 1: This paper deals with the analysis of deficit spending, its advantages
and disadvantages, as well as the effects of federal government borrowing on
the economy i.e., the “crowding out” effect.
Please submit your paper to the Assignment
Government and Fiscal Policy
LO 28: Demonstrate
an understanding of the major components of U.S. government spending and
sources of government revenues.
LO 29: Define
the terms budget surplus, budget deficit, balanced budget, and national debt
and discuss their trends over time in the United States.
LO 30: Compute
Government Spending Multiplier, the Tax Multiplier, and the Balanced Budget
LO 31: Define
automatic stabilizers and explain how they work.
LO 32: Explain
and graphically illustrate how discretionary fiscal policy works and compare
the changes in aggregate demand that result from changes in government
purchases, income taxes, and transfer payments.
LO 33: Explain
how the various kinds of lags influence the effectiveness of discretionary
LO 34: Explain
and graphically illustrate how crowding out (and its reverse) influence the
impact of expansionary or contractionary fiscal policy.
LO 35: Discuss
the controversy concerning which types of fiscal policies to use, including
the arguments from supply-side economics.
DQ5: “Paradox of Thrift”
Please submit your response to DQ5 to the Forum
Quiz 3: Units 4 & 5
The Money Supply and the Monetary Policy
LO 36: Define
money and discuss its three basic functions.
LO 37: Distinguish
between the types of money, i.e. between commodity money and fiat money, giving
examples of each.
LO 38: Define
money supply and the related definitions of it (M1 and M2).
LO 39: Explain
the functions of a bank and describe a bank’s balance sheet.
LO 40: Describe
the process of money creation (destruction) using the concept of the deposit
LO 41: Explain
the primary functions of the central bank and describe the tools used by the
Fed for money market operations.
LO 42: Explain
and illustrate how the bond market works and discuss the relationship between
the price of a bond and that bond’s interest rate.
LO 43: Explain
and illustrate the relationship between a change in demand for or supply of
bonds and macroeconomic activity.
LO 44: Explain
and illustrate how the foreign exchange market works and how a change in
demand for a country’s currency or a change in its supply affects
LO 45: Draw a
money demand curve and explain how changes in other variables may lead to
shifts in the money demand curve.
LO 46: Use
graphs to explain how changes in money demand or money supply are related to
changes in the bond market, in interest rates, in aggregate demand, and in
real GDP and the price level.
DQ6: Objectives of monetary policy
Please submit your response to DQ6 to the Forum
Quiz 4: Units 6
LO 47: Define
economic growth and describe the determinants of economic growth.
LO 48: Distinguish
between, describe, and analyze the classical, neoclassical, and endogenous
theories of economic growth.
LO 49: Learn
the closed economy Solow model.
LO 50: Explain
how a country’s standard of living depends on its saving and population
LO 51: Apply
the “Golden Rule” to find the optimal savings rate and capital stock.
DQ7: Limits to the U.S. long-term economic growth
Please submit your response to DQ7 to the Forum
Quiz 5: Unit 8
LO 52: Explain
the importance of studying trade.
LO 53: Describe
Adam Smith’s theory of absolute advantage and explain how it is calculated.
LO 54: Describe
the Ricardian model of trade and analyze its implications for trade.
LO 55: Describe
the Heckscher-Ohlin model of trade and analyze its implications for trade.
LO 56: Identify
tariffs and quotas in international trade.
LO 56: Analyze
the effects of tariffs and quotas.
Reflection: Please (1) describe how
you feel this course has helped you to improve your economic knowledge and
analytical skills, and (2) assess the course objectives you still do not
understand and suggest how to improve the course to meet those
Please submit your course reflection comments to
the Forum Section.
Research Paper 2
research paper deals the fiscal and the monetary policies adopted by the
federal government during the Great Recession and their impacts on the
Please submit your paper to the Assignment
Solution ID:393766 | This paper was updated on 26-Nov-2015Price : $110