Atlas103M Macroeconomic Policy

… a half-course module within the core Atlas Courses

MacroPolicyAtlas module syllabus

This six-topic module covers the principles and techniques of macroeconomic theory that are most useful in analyzing public policy and management problems.

The concepts presented in this module are listed by topic in Topics and Concepts in Macroeconomic Policy and listed alphabetically on the subject page, Macroeconomic Policy and below on this page. We have organized the topics and concepts to be a close as possible to that in the remarkable open access videos created by Tyler Cowen and Alex Tabarrok for the  Principles of Economics: Macroeconomics course on the Marginal Revolution University (MRU) online education platform http://www.mruniversity.com/courses/principles-economics-macroeconomics, accessed 23 April 2016). Many of our concept descriptions draw directly from the MRU videos. The alignment of Atlas103M with the Cowen and Tabarrok classes is displayed near the bottom of this page.

[Note: The elaboration of the topics and concepts is incomplete because, as of 23 April 2016, the Cowen-Tabarrok videos are only available on the MRU site for the first two and part of the third class Principles of Economics: Macroeconomics. Material will be added to the Atlas site as the MRU videos come available.]

Learning outcomes

On successful completion of this course students will have the skills and knowledge to be able to analyze public management problems by appropriately utilizing the theories and principles in the normed topics and concepts noted below.

Normed topics

The topics are normed in having a volume of content capable of being taught in one course-week of instruction − nominally 3 hours of in-class work and 7 hours of outside-class

  1. The Study of Macroeconomics
  2. Wealth of Nations and Economic Growth
  3. Growth, Capital Accumulation, and the Financial System
  4. Business Cycles and Unemployment
  5. Inflation and Monetary Policy
  6. Government Spending and Fiscal Policy

Like other normed topics on the Atlas, each of these has a topic description, links to core concepts relevant to the topic, learning outcomes, a reading list, and a series of assessment questions.

Concepts to be learned

Concepts listed alphabetically under topics
The Study of Macroeconomics

Gross Domestic Product (GDP)

Gross National Product

Inflation

National Spending vs Factor Income Components of GDP

Nominal vs. Real GDP

Real GDP Per Capita and the Standard of Living

Wealth of Nations and Economic Growth

Contributors to Growth

Growth Miracles and Growth Disasters

Growth Rates and National Wealth

Hockey Stick of Human Prosperity

Innovation and Growth

Ratio (Logarithmic) Scale

Rule of 70

Institutions and Growth

National Wealth

Growth, Capital Accumulation, and the Financial System

Economics of Ideas

Human Capital and Conditional Convergence

Idea Equation

Patents vs. Idea Spillovers

Physical Capital and Diminishing Returns

Solow Model and Ideas

Solow Model and the Steady State

Solow Model of Economic Growth

Business Cycles and Unemployment

Aggregate Demand

Aggregate Supply Curve

Automatic Stabilizers

Business Cycle

Capital Spending

Involuntary Unemployment

Keynesian Economics

Labour Force

Labour Force Participation Rate

Multiplier Effect

Natural Rate of Unemployment

Stabilization Policy

Stabilization Policy Lags

Unemployment

Unemployment Rate

Inflation and Monetary Policy

Fixed Exchange Rate

Floating Exchange Rate

Interest Rate Parity

Monetary Neutrality

Monetary Policy

Money Multiplier

Nominal Exchange Rate

Net Capital Outflow (NCO)

Open Market Operations

Overnight Rate

Real Exchange Rate

Real Interest Rate

Quantity Theory of Money

Velocity of Money

Government Spending and Fiscal Policy

Fiscal Policy

Self-Financing

Tax Expenditure

 

Course syllabi sources

Course syllabi reviewed to identify the core topics and concepts, in addition to the Marginal Revolution University (MRU) online education platform, were: Toronto PPG1003; Carleton PADM5223; Carleton PADM5113; Harvard PED210; NYU GP2138; and Rutgers 34:833:610.

Recommended readings

Week 1: The Study of Macroeconomics

Atlas pages: The Study of Macroeconomics and its associated Concepts.

Tyler Cowen, What is Goss Domestic Product (GDP)?, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics, accessed 20 April 2016.

Alex Tabarrok, Nominal vs Real GDP, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/real-versus-nominal-gdp, accessed 22 April 2016.

Alex Tabarrok, Real GDP Per Capita and the Standard of Living, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/gdp-per-capita-standard-of-living, accessed 22 April 2016.

Alex Tabarrok, Splitting GDP, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/gdp-national-spending-factor-income-approach, accessed 22 April 2016.

Week 2: Wealth of Nations and Economic Growth

Atlas pages: Wealth of Nations and Economic Growth and its associated Concepts.

Alex Tabarrok, Growth Rates are Crucial, Marginal Revolution University, at  http://www.mruniversity.com/courses/principles-economics-macroeconomics/growth-rate-real-gdp-per-capita, accessed 22 April 2016.

Alex Tabarrok, Growth Miracles and Growth Disasters, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/economic-growth-miracle-and-disaster, accessed 22 April 2016.

Alex Tabarrok, The Puzzle of Growth, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/wealth-of-nations-economic-growth, accessed 22 April 2016.

Don Boudreaux, An Orgy of Innovation, Marginal Revolution University, at http://www.mruniversity.com/courses/everyday-economics/hockey-stick-human-prosperity-innovation-invention-entrepreneur, accessed 22 April 2016.

Don Boudreaux, The Hockey Stick of Human Prosperity, Marginal Revolution University, at http://www.mruniversity.com/courses/everyday-economics/trade-growth-hockey-stick-human-prosperity, accessed 22 April 2016.

Alex Tabarrok, Basic Facts of Wealth, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/gdp-per-capita-purchasing-power-parity-example, accessed 22 April 2016.

Alex Tabarrok, Rule of 70, Marginal Revolution University, at http://www.mruniversity.com/courses/development-economics/rule-70, accessed 22 April 2016.

Alex Tabarrok, The Importance of Institutions, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/north-korea-and-south-korea-institutions, accessed 22 April 2016.

Week 3: Growth, Capital Accumulation, and the Financial System

Atlas pages: Growth, Capital Accumulation, and the Financial System and its associated Concepts.

Alex Tabarrok, Introduction to the Solow Model, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/solow-model-economic-growth, accessed 23 April 2016.

Alex Tabarrok, Physical Capital and Diminishing Returns, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/law-diminishing-returns-marginal-product-capital, accessed 23 April 2016.

Alex Tabarrok, Solow Model and the Steady State, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/solow-model-and-steady-state, accessed 23 April 2016.

[More to come when MRU videos come available.]

Week 4: Business Cycles and Unemployment

[To come]

Week 5: Inflation and Monetary Policy

[To come]

Week 6: Government Spending and Fiscal Policy

[To come]

Sample assessment questions (directly from the MRU course materials)

Week 1:  The Study of Macroeconomicsx

  1. GDP includes
  2. Real GDP controls for
  3. Real GDP per capita is positively correlated with all of the following except:
  4. Real GDP per capita is positively correlated with all of the following except:

Week 2: Wealth of Nations and Economic Growth

  1. Mexico and Bulgaria have roughly the same GDP per capita in 2014. Based on what you’ve learned in the video, is Bulgaria closer in GDP per capita to the United States or to the Central African Republic?
  2. Since 1800, real GDP per capita in the United States has doubled roughly every
  3. If a process is growing at a rate of x percent per period, then the doubling time is approximately 70/x periods. This is known as:
    1. th
  4. Which graph below is drawn with a ratio scale?
  5. The following institution(s) promote(s) economic growth:
  6. Which of the following has not been a cause of rising prosperity?
  7. Which of the following countries’ economies fell further behind in the 20th century?
  8. Which of the following is a factor of production and best defined as ideas and inventions?

Week 3: Growth, Capital Accumulation, and the Financial System

  1. Japan’s and Germany’s economic growth after World War II are both examples of:
  2. The following diagram appeared in the video; what does portion B represent?
  3. For the next two questions, consider the following: Country A has K=10,000 and produces GDP according to the following equation: GDP=5√K. If the country devotes 25% of its GDP to making investment goods, how much is the country investing?
  4. more to come

Weeks 4, 5, 6

to come

Alignment of Atlas103M with the Cowen and Tabarrok MRU course

The core topics in this subject have been specified so that they align closely with the class titles in the MRU Principles of Microeconomics course, as illustrated below.

Atlas core topic
MRU class (most with several videos)
The Study of Macroeconomics 1 – GDP
Wealth of Nations and Economic Growth 2 – The Wealth of Nations and Economic Growth
Growth, Capital Accumulation, and the Financial System 3 – Growth, Capital Accumulation, and the Economics of Ideas

4 – Savings, Investment, and the Financial System

Business Cycles and Unemployment 5 – Unemployment and Labor Force Participation

7- Business Fluctuations

8 – Transmission and Amplification

Inflation and Monetary Policy 6 – Inflation and Quantity Theory

9 – The Federal Reserve

10 – Monetary Policy

Government Spending and Fiscal Policy 11 – Fiscal Policy

Page created by: Ian Clark, last modified on 24 April 2016.

Image:  Courtesy of www3.imperial.ac.uk/pls/portalive/docs/1/66165700.jpg from Smriti Chand Economics, at http://www.yourarticlelibrary.com/economics/essay-on-the-concept-of-national-income/2732/, accessed 22 April 2016.