Upon successful completion of this course, you will be able to:

• identify the determinants of demand and supply;
• describe how changes in demand and supply lead to changes in a market’s equilibrium price and quantity;
• distinguish microeconomics from macroeconomics;
• describe the circular flow model, identifying linkages between the markets for goods and resources as well as the exchanges between businesses and households;
• define nominal gross domestic product and real gross domestic product;
• compare and contrast as well as discuss various measures of output and income;
• distinguish between real and nominal values;
• analyze the problems associated with using GDP as a measure of well-being;
• identify the components of the expenditure and the income approaches to the measurement of GDP;
• explain how consumer income relates to spending and saving;
• describe the consumption and savings functions and the terms attached to their slopes;
• define automatic stabilizers, and explain changes in government spending and taxing during a macroeconomic recession and expansion;
• describe how savings and investment contribute to economic growth;
• define economic growth in terms of changes in the production possibilities curve and in real gross domestic product;
• define unemployment rate;
• calculate the unemployment rate;
• identify and distinguish between the different forms of unemployment;
• analyze the problems associated with the unemployment rate;
• describe the three types of unemployment and factors that relate to them;
• define inflation and deflation, and explain how each affects the price and economic growth of an economy;
• define, interpret, and calculate inflation rate and the consumer price index;
• describe the problems and biases associated with the consumer price index;
• articulate sources of inflation, and explain how they can affect economic stability;
• use the model of aggregate demand and aggregate supply to explain stagflation;
• explain the relationship between inflation and unemployment;
• describe and analyze the Classical as well as the Keynesian views on unemployment; and
• discuss various explanations for wage and price stickiness.