Fundamentals of Macroeconomics from edX

Are you interested in a serious and solid background in economics?

This course offers you a thorough view of everything economists know about markets: their strengths, their failures, and how this view can help you understand the most relevant economic problems. We follow a rigorous approach that combines visual arguments with realistic examplesto help you connect the main economic concepts with your own experiences.

The only required knowledge is certain familiarity with graph reading and basic high school mathematics.

By the end of this course, you will have explored thekey questions in macroeconomics:

Why some societies manage to coordinate and prosper in the long run and others don’t. Are developing countries doomed? What is postponing their prosperity?
Why even the most successful economies experience occasional crises that compromise the quality of life?
Why are there spikes in the unemployment or inflation that cause pain in our societies? What can we do about it?

What you'll learn

The GDP, its meaning, measurement,and components
The main indicators of the labor market and the nature of unemployment
Savings, investment,and the financial system
The monetary and the banking system
Central banks, monetary policies,and inflation
International trade, capital flows,and exchange rates
Economic fluctuations
Fiscal and monetary policies

What's inside

Learning objectives

The gdp, its meaning, measurement,and components
The main indicators of the labor market and the nature of unemployment
Savings, investment,and the financial system
The monetary and the banking system

Central banks, monetary policies,and inflation
International trade, capital flows,and exchange rates
Economic fluctuations
Fiscal and monetary policies

The gdp, its meaning, measurement,and components
The main indicators of the labor market and the nature of unemployment
Savings, investment,and the financial system
The monetary and the banking system
Central banks, monetary policies,and inflation
International trade, capital flows,and exchange rates
Economic fluctuations
Fiscal and monetary policies

Syllabus

Week 1: Introduction and Gross Domestic Product Macroeconomic aggregates and Gross Domestic Product. The value added and the return of productive factors. The components of GDP. Real and nominal GDP and the GDP deflator. The determinants of productivity in the long run.

Week 2: Savings and Investment. Labor Market. Consumer Price Index Savings and investment in a closed economy. The market for loanable funds. Main statistics of the labor market. Types of unemployment: the natural rate and the cyclical unemployment. The consumer price index and the measurement of inflation.

Week 3: Money, monetary system and inflation Definitions of money. The fractional-reserve banking system. The central banks. The tools for monetary control. Money demand, money supply,and price level determination. The quantity theory of money and the causes of inflationover the long run.

Week 4: Open economies and exchange rates Open economies and trade balances. Capital flows. The relationship between savings, investment,and capital flows in open economies. Nominal and real exchange rate. The Purchasing-power Parity theory for determination of nominal exchange rates. The relationship between inflation and depreciation.

Week 5: Economic fluctuations Empirical regularities of economic fluctuations. The aggregate demand curve. The long-run aggregate supply curve. The short-run aggregate supply curve. The long-run equilibrium and the short run economic fluctuations.

Week 6: Fiscal and Monetary Policies The money demand and the theory of liquidity preference. The impact of monetary policies on the aggregate demand. Fiscal policies and the multiplier effect. Fiscal policies and the crowding-out effect. The argument for and against the use of fiscal and monetary policy to stabilize the economy.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Develops concepts that are applicable to students' lives and work

Examines macroeconomic phenomena, which is relevant in various fields

Provides a comprehensive overview of macroeconomics

Teaches visual arguments, which can enhance understanding for some learners

Taught by experienced professors in economics

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Fundamentals of Macroeconomics with these activities:

Review 'Macroeconomics' by Olivier Blanchard

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This book provides a comprehensive overview of the key concepts in macroeconomics, which will be essential for understanding the course materials.

View Fiscal Policy under Low Interest Rates on Amazon

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Read the first three chapters of the book.
Take notes on the main concepts discussed in each chapter.
Complete the practice problems at the end of each chapter.

Organize your lecture notes and readings

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Staying organized will help you to keep track of the material and prepare for exams.

Browse courses on Note-Taking

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Create a system for organizing your lecture notes and readings.
Keep all of your materials in one place.
Review your materials regularly.

Follow an online tutorial on macroeconomic forecasting

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Following an online tutorial on macroeconomic forecasting will help you to learn about the different methods that are used to forecast the economy.

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Find an online tutorial on macroeconomic forecasting.
Follow the steps in the tutorial.
Apply the forecasting methods to a real-world dataset.

Four other activities

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Participate in a peer-led study group

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Participating in a peer-led study group will allow you to discuss the material with other students and learn from their perspectives.

Browse courses on Macroeconomics

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Find a study group that meets regularly.
Attend the study group meetings.
Participate in the discussions.

Solve macroeconomic practice problems

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Solving macroeconomic practice problems will help you to develop your problem-solving skills and deepen your understanding of the material.

Browse courses on Macroeconomics

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Find a set of macroeconomic practice problems.
Solve the problems using the concepts that you have learned in class.
Check your answers against the solutions.

Create a blog post on a macroeconomic topic

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Writing a blog post on a macroeconomic topic will help you to synthesize your understanding of the material and communicate it to others.

Browse courses on Macroeconomics

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Choose a topic that you are interested in and that you have a good understanding of.
Research the topic thoroughly.
Write a clear and concise blog post that explains the topic to a non-expert audience.

Develop a simple macroeconomic model

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Developing a simple macroeconomic model will help you to understand how the different components of the economy interact.

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Choose a specific economic issue that you want to model.
Identify the key variables that are involved in the issue.
Develop a set of equations that describe the relationships between the variables.
Use the model to make predictions about the economy.

Career center

Learners who complete Fundamentals of Macroeconomics will develop knowledge and skills that may be useful to these careers:

Economist

Economists study how the economy works and how it affects people and businesses. They use their knowledge to advise governments and businesses on economic policy and to help them make informed decisions.

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Professor

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Government Economist

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Quantitative Analyst

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Financial Analyst

Financial analysts research and analyze financial data to make recommendations to investors about which stocks and bonds to buy or sell.

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Research Analyst

Research analysts conduct research on companies and industries to make recommendations to investors about which stocks and bonds to buy or sell.

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Policy Analyst

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Trader

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Actuary

Actuaries use mathematical and statistical methods to assess risk and uncertainty. They use this knowledge to design insurance policies and other financial products that help people protect themselves from financial losses. They must stay up-to-date with the latest economic data and trends in order to develop accurate models and make sound recommendations to their clients.

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Risk Manager

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Consultant

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Investment Banker

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Statistician

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Market Researcher

Market researchers conduct research to understand the needs and wants of consumers. They use this information to help businesses develop and market products and services that meet the needs of their target market. Understanding the economy and how it affects consumer behavior is essential for success in this role.

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Business Analyst

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