Applied Economics Analysis II (90-738)

This is an introductory course on macroeconomics - the study of the performance of national economy as well as the policies used to improve that performance. Unlike microeconomics, which focuses on the behavior of individual households, firms, and markets, macroeconomics takes a bird's eye view of the economy. The key topics include measuring macroeconomic activities such as GDP, unemployment, price level and inflation; analyzing economy conditions and issues in the long-run and the short-run, as well as the issues of international trade and exchange rates in the international economy.

The course is divided into four modules:

Module A - Macroeconomics: Issues and Data, which include a bird's-eye view of the economy; measurement of the economic activity (GDP and unemployment); as well as measurement of the price level and inflation.

Module B - Economy in the Long Run, which include the economic growth, productivity and living standards; workers, wages and unemployment in the modern economy; saving and capital formation; money, prices and the Federal Reserve; as well as financial markets and international capital flows.

Module C - Economy in the Short Run, which include an introduction of the short-term economic fluctuations; spending and output in the short run; the role of the Fed in stabilizing the economy; inflation, aggregate supply and aggregate demand; as well as the practice and pitfalls of macroeconomic policy.

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