Course Outline

Topic 1: Introduction & Review of Supply, Demand and Market Equilibrium

  • Introduction to Macroeconomics: Terminology, US Economy, World Economy
  • Supply and Demand related to Macroeconomics

Readings: Mankiw Chapters 1 and 4

Topic 2: The Data of Macroeconomics

  • Measuring a country’s income: GDP
  • Productivity and Growth: Determinants of productivity and economic growth
  • Measuring the cost of living: Consumer Price Index; Calculating inflation
  • Unemployment: Labor markets; Minimum-wage laws; Efficiency wages

Readings: Mankiw Chapters 10, 11, 12 and 15

Topic 3: Financial Markets, Banking System, and the Monetary System

  • Savings, Investment, and the Financial System
  • Tools in Finance: Managing Risk; Asset Valuation; Time value of money
  • The Monetary System: Meaning of money, the Federal Reserve,
  • Banks and Money Supply: Money creation
  • Money Growth and Inflation: Money supply and demand and inflation

Readings: Mankiw Chapters 13, 14, 16 and 17

Topic 4: Aggregate Supply, Aggregate Demand, and Equilibrium GDP

  • Aggregate Demand and Supply Model
  • Monetary and Fiscal Policy and Aggregate Demand
  • The Phillips Curve and costs of reducing inflation

Readings: Mankiw Chapters 20, 21 and 22