The American University BBA 2401 PRINCIPLES OF MACROECONOMICS 2

Surveys important macroeconomic concepts such as Gross Domestic Product (GDP), unemployment, and inflation. Students learn how to determine the overall levels of output, unemployment and prices. Students examine the concepts of scarcity and opportunity cost, explore the framework of supply and demand, and review factors that impact the overall economic activity and macroeconomic stability. Finally, students are introduced to selected topics related to international trade and finance and investigate government fiscal and monetary policy and their influence on the level of economic activity.

Learning outcomes

• Recognize resource scarcity and opportunity cost as the central economic problem.
• Define market prices and the role of supply and demand in determining prices and quantities of goods and services.
• Discuss various national economic indicators and how each relates to economic growth.
• Examine the effects of unemployment and inflation on the economy.
• Construct the aggregate expenditure and demand model of the macro economy.
• Discuss the interaction of the Federal Government and the Federal Reserve Bank in controlling the economy.
• Illustrate monetary theory using the money supply and demand model.
• Analyze the international economy through trade interdependencies and financial interactions.

Prerequisites

None