Common Course Outline

Catalog Description

Course Description

This course provides in depth understanding of macroeconomic theory and practice. Emphasis is placed on free markets and capitalism. Keynesian theory or aggregate supply and demand are used to explain business fluctuations. Aggregate data collection and use (such as GDP, unemployment, inflation, money supply, and interest rates) are basic concepts. International trade or finance and policy-making at the national and international levels are important issues with perspectives grounded in macroeconomic principles. The real-side and the monetary-side of the economy are presented.

Date Last Revised (Month, year)

March, 2023

Outline of Major Content Areas

1. Opportunity costs and choice
2. Production possibilities
3. Market demand and supply
4. Elasticity
5. Gross domestic product
6. Unemployment
7. Inflation
8. Economic growth
9. International trade and financial capital flows
10. Aggregate demand and aggregate Supply
11. Keynesian perspective
12. Neoclassical perspective
13. Money and banking
14. Monetary policy
15. Government budgets and fiscal policy
16. Impact of government borrowing
17. International trade
18. Globalization and protectionism
19. Exchange rates and international financial capital flows

Learning Outcomes (General)

The student will be able to:

1. Explain the basic economic problem (scarcity, opportunity costs, choice).
2. Explain markets and price determination (determinants of supply and demand, price ceilings and floors).
3. Critique measurements of aggregate economic performance (GDP and its components, real vs. nominal values, unemployment, inflation, income, and expenditure approaches to GDP, and limitations).
4. Apply the model of aggregate supply and aggregate demand (potential GDP, economic growth and productivity, determinants and components of AS and AD, the multiplier effect).
5. Explain money and financial markets (money, money creation, financial institutions, and financial instruments).
6. Critique monetary and fiscal policies (tools of monetary policy, automatic and discretionary fiscal policies, public debt).
7. Compare and contrast policy debates (policy lags and limitations, rules vs. discretion, long run vs. short run, expectations, and sources of macroeconomic instability.
8. Explain elements of international economics (balance of payments, exchanges rate systems, open-economy macroeconomics).

Learning Outcomes (MnTC)

Goal 5/History and the Social and Behavioral Sciences

The student will be able to:

1. Employ the methods and data that historians and social and behavioral scientists use to investigate the human condition.
2. Use and critique alternative explanatory systems or theories.
3. Develop and communicate alternative explanations or solutions for contemporary social issues.

Goal 8/Global Perspectives.

The student will be able to:

1. Describe and analyze political, economic, and cultural elements which influence relations of states and societies in their historical and contemporary dimensions.
2. Analyze specific international problems, illustrating the cultural, economic, and political differences that affect their solution.
3. Understand the role of a world citizen and the responsibility world citizens share for their common global future.

Methods for Evaluation of Student Learning

Methods may include but are not limited to:

• Exams and/or quizzes
• Homework or assigned problems
• Group or team projects
• Class participation
• Papers, essays, journals, notebooks, or presentations

RCTC Core Outcome(s)

This course contributes to meeting the following RCTC Core Outcome(s):

Critical Thinking

Students will think systematically and explore information thoroughly before accepting or formulating a position or conclusion.

Special Information (if any)

None