Standard

R State Standard £ Institutionally Developed College: N/A

ECO 2105 – Principles of Macroeconomics

Course Description

Provides a description and analysis of macroeconomic operations in contemporary society. Emphasis is placed on developing an understanding of macroeconomic concepts and policies. Topics include: basic economic principles; macroeconomic principles; macroeconomic theory; macroeconomic policy; money and banking; and United States economy in perspective.

Competency Areas	Hours
Basic Economic Principles	Class	5
Macroeconomic Principles	D. Lab	0
Macroeconomic Theory	P. Lab/O.B.I.	0
Macroeconomic Policy	Credit	5
Money and Banking
United States Economy in Perspective

Prerequisite:	Program admission.
Corequisite:

Course Guide

Competency	After completing this section, the student will be able to:	Hours
		Class	D.Lab	P.Lab/ O.B.I.

Basic Economic Principles		8	0	0
Economics defined	Define economics.
Economic theory and method	Define economic theories, models, and assumptions.
Economic approach	Describe the difference between positive and normative economic theory.
Economic factors	Define the factors of production.
	Define the production possibilities curve and markets.
Problem of scarcity	Describe scarcity in the context of factors of production, opportunity costs, and unlimited wants.
Problem of choice	Describe how society chooses to produce its goods and services.
	Describe how society chooses to produce its goods and services.
	Explain supply and demand, equilibrium, and price point.
Modern specialization	Define the principles of specialization and comparative advantage.
Supply and demand	Define the principles of supply and demand and the economic forces which can change supply and demand.
The economic role of government	Discuss the economic functions of government.
	Describe the various types of tax systems.
	List the criteria of sound taxation.
	Discuss the various types of taxes collected in the United States.
Macroeconomic Principles		12	0	0
Macroeconomics defined	Define macroeconomics.
Macroeconomic flows	Define the input and output flows of the macroeconomy.
Macroeconomic goals	Define the basic goals of macroeconomic policy.
Measuring economic performance and national income accounting.	Discuss basic accounting concepts.
	Define the most widely used measures of economic growth.
	Describe various price indexes.
Fluctuations in output, employment, and prices	Define aggregate demand and aggregate supply and the characteristics of each.
	Explain the relationship among the level of employment, the level of output, and the level of prices.
Macroeconomic Theory		10	0	0
Classical economic theory	Discuss macroeconomic theory and principles pertaining to the determination of output, employment, and price levels, according to classical economists.
Keynesian economic theory	Discuss macroeconomic theory and principles pertaining to the determination of output, employment, and price levels, according to Keynesian economists.
Monetarist economic theory	Discuss macroeconomic theory and principles pertaining to the determination of output, employment, and price levels, according to monetarist economists.
Rational expectations economic theory	Discuss macroeconomic theory and principles pertaining to the determination of output, employment, and price levels, according to rational expectations economists.
Supply-side economic theory	Discuss macroeconomic theory and principles pertaining to the determination of output, employment, and price levels, according to supply-side economists.
Phillips curve	Explain the short-run and long-run versions of the Phillips curve.
Macroeconomic Policy		10	0	0
Fiscal policy	Define fiscal policy.
	Discuss how national income is changed through fiscal policy.
	Discuss the effects of fiscal policy on federal deficits and the national debt.
	Discuss the effects of federal and local government expenditures on the economy.
	Analyze and discuss the pros and cons of government spending.
	Discuss possibilities for future changes in government spending.
Monetary policy	Define monetary policy.
	Discuss the role of monetary policy in the economy.
	Describe monetary targets.
Money, and Banking		4	0	0
Functions of money	Explain the meaning of money in economic terms.
Nation's money supply	Discuss the establishment and control of the nation's money supply.
	Discuss the federal government measures of money.
Organization and operation of a bank	Describe sources of deposits and reserves, including reserve ratio and expansion of bank deposits.
The Federal Reserve System	Discuss the service functions and method of control of money supply by the Federal Reserve System.
Federal Deposit Insurance Corporation (F.D.I.C.)	Explain the function and purpose of the F.D.I.C.
United States Economy in Perspective		6	0	0
Recent economic changes	Explain effects of inflation and recession.
Present economic problems of U.S. economy	Discuss effects of trade imbalances.
Communism	Explain the nature of the communist economic system as contrasted to the capitalist economic system.
Common problems	List economic problems common to all forms of government.
Special economic problems of the U.S.	List and describe major problems which affect the American economy today.

Suggested Resources

Media Print Audio/Visual Web Other
Print	Amacher, R., & Ulbrich, H. (1992). Principles of economics. (4^thed.) Cincinnati: South-Western.
	Bowden, E. V. (1989). Economics: The science of common sense. (6^th ed.) Cincinnati: South-Western.
	Heilbroner, R. L., & Thurow, L. C. (1984). The economic problem. (7^th ed.) Englewood Cliffs, NJ: Prentice Hall.
	Hoag, A. J., & Hoag, J. H. (2006). Introductory economics. (4^th ed.) World Scientific.
	Olsen, H., & Kennedy, J. (Latest edition). Economics: Principles and applications. Cincinnati: South-Western.

Posted: 10/08/08