ECONOMIC THEORY: MACRO

Catalog description

This course is designed to follow introductory economics, to examine the determination of output, employment, the price level, inflation, interest rates, and the exchange rate in the economy. Piece-by-piece, theoretical models will be constructed describing how each of these and other variables are determined in both, the long-run and in the short-run. We will analyze how changes in a particular event affect different markets in the economy, and in turn, how one market interacts with another within a general equilibrium framework. A large part of the course will be devoted to business cycle theory, macroeconomic policy issues, and open economy macroeconomics. The world economies are very much integrated, and thus, a full understanding of macroeconomics requires knowledge of international aspects of macroeconomics. The purpose of this course is to provide the student with an understanding of the connection between macroeconomic theory and related policy issues.