ECON 162Principles of Macroecon (LEC)

Catalog

Macroeconomics is the study of aggregate economic variables, such as gross domestic product (GDP), inflation or deflation, unemployment, interest rates and the money supply, and international trade and exchange rates, and the ways in which these variables influence each other and, ultimately, the standard of living in any economy. The first part of the course focuses on the role of the price system in resource allocation. Next, we examine alternative theories of output determination, including classical, Keynesian and monetarist approaches. Finally we study the roles of fiscal and monetary policy in economic stabilization, distribution of income, money and banking and the global economy. We will develop and apply analytical tools to explain the behavior of output, employment, income and prices. We will also examine the effects of budget deficits and surpluses, national debt, trade deficits, inflation and exchange rates. For majors and non-majors. Appropriate for first-year students. Format: Three weekly lectures and one discussion section per week. Requirements include ten problem sets and three exams during the semester.