Upon course completion, the student will be able to:
1. Diagram the circular flow model identifying the components of national income and gross domestic product and explicate conditions for equilibrium.
2. Describe the business cycle, its measurements and correlation with various economic indicators with an emphasis on employment.
3. Define inflation, its various measures and assess its effects on firms, households and national government.
4. Illustrate the process by which commercial banks create money and explain the tools central banks employ to manage a nation’s money supply.
5. Demonstrate how various market forces interact to determine interest rates in the loanable funds market.
6. Utilize the Keynesian model of macro economy to assess government actions to simultaneously achieve full employment at low inflation in the real goods market.
7. Explain how exchange rates are determined by market forces in the foreign exchange markets.
8. Assess the costs and benefits of world trade and effectiveness of government actions to manage current account balances.
9. Illustrate the interaction of the real goods, loanable funds and foreign exchange markets in assessing the economic shocks to a nation’s economy.
10. Explain the impact of compounded growth on economic well-being and how government can promote sustained economic growth.