Economics 205

ECON 205
Principles of Macroeconomics

1. Catalog Entry

ECON 205
Principles of Macroeconomics

Credit hours (3)

Semester offered: Summer, Fall, and Spring
        
An introduction to the concepts of scarcity and choice, supply and demand theory, national income accounting, money and banking, monetary and fiscal policy models, and how government deals with the problems of inflation, unemployment, and economic growth. This course has been approved for Core Curriculum credit in Social and Behavioral Sciences or U.S. Perspectives.

2. Detailed Description of Course

Principles of Macroeconomics is an introduction to the study of the structure of the U.S. economy. The course will introduce the students to the basics (fundamentals) of economic theory and reasoning. Moreover, this course will primarily focus on understanding, measuring, and analyzing macroeconomic activity and the role of the U.S. government in the economy. The course coverage and material will emphasize historical and contemporary economic issues facing the U.S. economy.  

Topics Outline
       1) Introduction to the Economic Way of Thinking
       2) Introduction to Supply and Demand Analysis
       3) Introduction to National Income and Product Accounts (NIPA)
       4) Trade and economic growth in a global world
       5) Unemployment and business cycles in the U.S.
       6) Banking, the monetary system, and inflation in the U.S.
       7) Introduction to fiscal and monetary policy
       8) Introduction to aggregate demand-aggregate supply and stabilization policies
    

3. Detailed Description of Conduct of Course

The following teaching strategies may be employed: lectures, video and/or audio presentations, homework, discussions, and in-class engagement activities.

4. Goals and Objectives of the Course

This course will fulfill Core Curriculum requirements under Social and Behavioral Sciences (Goal 9) or under U.S. Perspectives (Goal 10).

Goal 9: Radford University students will understand how individual, social, or cultural factors influence human behavior and shape reciprocal relationships between people and society.

Radford University students will be able to:
        1) Recognize social and behavioral science concepts;
        2) Recognize the relationship between individual and socio-cultural factors that
            affect behaviors

Goal 10: Radford University students will understand how social and cultural (for example, political, historical, economic, environmental, religious, or geographic) forces shape the American experience.

Radford University students will be able to:
       1) Identify diverse influences that have shaped the American experience; and
       2) Apply course material to a relevant issue in the United States.

Specific objectives are that upon completion of this course, students will be able to:
       1) Explain the nature of the economic problem.
       2) Explain the role of comparative advantage and specialization in trade.
       3) Describe the roles of consumers, business firms, and government in the functions of
           the U.S. economy.
       4) Effectively use economic vocabulary to comment on the state of the economy and
           the factors that influence it.
       5) Demonstrate how price and quantity are determined in competitive markets using
           the demand and supply model.
       6) Identify the determinants of economic growth and comment on policies designed
           to improve standards of living.
       7) Describe the three macroeconomic goals of full employment, price stability and
           economic growth.
       8) Compute labor, price and national income statistics including the unemployment
           rate, inflation rate, and GDP growth rate.
       9) Identify trends and patterns in unemployment, inflation, and GDP growth for both
           the short-run and the long-run.
       10)Explain the Aggregate Demand-Aggregate Supply model and assess alternative
           fiscal and monetary policies for achieving the three macroeconomic goals
           (high employment, low inflation, high economic growth).

5. Assessment Measures

Tests, quizzes, homework, reports, presentations, class participation.  Grades and percentages depend on individual professors.

6. Other Course Information

None

Review and Approval

December 2004

April 13, 2009

March 2010

September 2, 2014

June 20, 2015