A Course Outline of Macro Economics

(Links are to Objectives, Key Terms, and Conceptual Questions)

I. Introduction to Macro Economics

A. The Circular Flow of National Income and Product

B. Measuring National Income and National Product

C. Aggregate Demand and Aggregate Supply

II. Models of Macro Economic Equilibrium

A. Classical and Keynesian Theories of National Income

B. Simple Keynesian Models

C. Equilibrium & the Multiplier: Simple I-E

D. Income Expenditure Model & AD/AS Models Reconciled

E. Fiscal Policy

III. Banking and Monetary Policy

A. Money and the Banking System

B. The Commercial Bank and the Creation of Money

C. Demand, Supply, and the Money Market

D. Monetary and Fiscal Policy: Short Run and Long Run Affects

IV. Price Stability, Employment and Growth

A. Inflation

B. Inflation & The Accerlerationist Model

C. Economic Growth

D. Policy Activism vs. Policy Rule

V. International Economics

A. Gains from Trade

B. Exchange Rates

C. Balance of Payments