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INTRODUCTION TO ECONOMICS II

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Learning Outcomes

  • Explain the main factors led to development of macroeconomics and the scope of macroeconomics, define GDP concept and to explain its calculation methods.
  • Analyze the factors that determine consumer expenditures and savings, explain the factors that determine investment and net export, interpret the aggregate expenditure function.
  • Describe the Classical and Keynesian opinions about macroeconomic equilibrium in the economy, explain the equilibrium concept and the importance of aggregate expenditures in the process of macroeconomic equilibrium.
  • Explain the changes stemmed from including taxes into our macroeconomic model, explain the effects of government’s spending and taxing decisions on the level of equilibrium income, explain the relationship between fiscal policy and economic stability.
  • Explain the functions of money in an economy, explain how banking system creates money, explain how Classical and Keynesian economists explain the relationship between the quantity of money and economic activities, explain how central bank uses the tools it has to control amount of money.
  • Describe the concept of aggregate demand and aggregate supply and explain the meaning of them, understand how the general price level and the production are determined in an economy and why they change in time, understand how economic policies affect the general price level and the production amount by using AD – AS analysis.
  • Analyze the international trade theory, evaluate the international trade policy, define the meaning and functioning of foreign exchange rates, foreign exchange market and foreign exchange rate systems.
  • Describe the sources of economic growth, explain and show the differences of the models of economic growth, define economic development and differentiate it from the economic growth.
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