Fundamentals of Economics for Business II

This course introduces students to the main macroeconomic variables and provides different economic models to study how these variables are affected by policymakers and aggregate shocks. Students will gain insight into how the economy in general behaves and how this behavior affects their daily lives.

Syllabus

 You can find the syllabus here.

Course Learning Objectives

Upon successful completion, students will be able to:

• Define, calculate, interpret, and relate the three basic macroeconomic variables: GDP, unemployment, and inflation.
• Analyze firms and stock markets and illustrate the relationship between savings, investment, and interest rates.
• Define, set-up, and manipulate the aggregate demand/aggregate supply model and explain how changes in the economy affect the three macroeconomic variables in both the short and long run.
• Define and explain basic fiscal policy functions. Examine how fiscal policy affect the three macroeconomic variables.
• Define and explain how money, banks, and monetary policy work and how they are related to each other. Examine how monetary policy changes affect the three macroeconomic variables.
• Explain how basic exchange rate markets work and determine the equilibrium. Explain how fiscal and monetary policies affect international trade and exchange rates.
• Understand how firms and households chose their optimal labor demand and supply. Examine how aggregate shocks affect wages and employment in the economy.

FAQs

Prerequisites:

• Fundamentals of Economics for Business I (B251).

Required textbook and resources:

• Graf P., ‘Introductory Macroeconomics’, IU eText.
• Class Canvas Website.
• TopHat.
• Packback.
• Microsoft Excel.