Principles of Economics: Macroeconomics - The Big Picture from Coursera

Take a trip with me in this the third and final course of this Economics 100 Specialization which is a direct adaptation from one of my courses I teach at Rice University. Specifically, in this course we're going to be focusing on Macroeconomics. What is Macroeconomics you might be asking? Well, you've come to the right place! We're going to be going over the big picture of economics- which is examining the measures we use to gauge the health of national economies and study the theories and policies aimed at improving economic health. In a nutshell, how can we use economics to make the world a better place?

Through course lectures, quizzes, discussions, and problem sets, my hope is that you'll be able to digest economic news with a more discerning viewpoint, and have a more informed view about the cost and benefits of economic policy. Finally, my hope is that you've learned to look at the world around you through the eyes of an economist.

By the end of this course you should be able to:

1. Describe how GDP is used to measure macroeconomic performance.

2. Describe how inflation is used to measure macroeconomic performance.

3. Describe how unemployment rates and participation rates are used to measure

macroeconomic performance.

4. Identify the primary sources of economic growth and explain the observed cross-

country differences in income per capita.

5. Define savings and explain the factors influencing financial flows and

international trade.

6. Identify the function of the federal reserve, describe the relationship between

nominal interest rates, money demand and money supply, and describe the

relationship between exchange rates and Net Exports.

7. Explain the interaction between aggregate demand and aggregate supply to

determine the price level, real GDP, and employment.

8. Describe the role of government and analyze policy responses to business cycle

shocks

What's inside

Syllabus

Welcome to the Course!

Welcome, congratulations and thank you for enrolling in this final chapter of our three-part Specialization, Macroeconomics. Please make sure to take look at all the welcome materials (you can skip the Meet the Professor if you've already "met me" two times).

Module 1 - Macro Measures

Alrighty then Econ 100. Welcome to Macro Measures. This is our first lecture in Act 3, the big picture. We made it to the big show, Macroeconomics. Here, the first thing we're going to do in macro, we're going to talk about our macro measures. Just like other social sciences, there's two sides of economics, there's the empirical side or the data side. Let's dive in!

Module 2 - Economic Growth

When we're talking about economic growth, what is the name of the game? The name of the game is raising standards of living. That's what we're trying to do with economic growth. We're trying to take people in difficult situations and give them the tools and the equipment that they need to raise themselves up, put themselves in better situations, and live the lives that they want to live.

Module 3 - Labor Markets

Welcome to labor supply and demand. Now, we've already talked about our labor market measures, our labor market variables. Now, we going to talk about the theory behind the labor market. Now this is macro, but before we get to the macro, we going to take a little trip down memory lane to the world of microeconomics and then we can explore further!

Module 4 - Savings and Consumption

In this module we're going to be looking at the relationship between... well savings and consumption. We're going to look at how the relationship between the two affects changes in income and interest rates within our two period consumer model. Let's get it.

Module 5 - Savings and Investment

When you think savings and investment, you probably think of financial institutions-- You think stocks, bonds, Wall Street, maybe the stock market. That's where this story is taking place. Now remember here in economics, we use the term investment differently than they do in finance. In finance, when you buy stocks and bonds, they call that investment. You're investing in the market in economics when you buy those assets and that's what they are assets, we call that savings. Investment is different for us in economics as you'll see in this module!

Module 6 - Money and Monetary Policy

In this module, we're going to be talking about money and monetary policy. Monetary policy, how it's conducted by the Federal Reserve. The control the money supply to affect interest rates, inflation, and employment. And we'll be defining some terms, looking at tools, and exploring their impact. Jump on in!

Module 7 - Aggregate Supply and Demand

Here in aggregate supply and demand we are going to take everything we've done throughout the entire course and we're going to put all the pieces of the puzzle together and look at our aggregate supply and demand graph! It's a bit of a short lesson, but it encompasses a lot of previous knowledge, so you may want to allot some time for review of previous lessons or have your notes handy. Let's check it out!

Module 8 - Fiscal Policy

Welcome to fiscal policy, this is really government policy. We've talked about monetary policy with the Central Bank, with the Federal Reserve but as I told you, they're an independent institution they're not really part of the government. Here our fiscal policy, that is really government policy, and this is our last hurrah, this is our last lecture in Act 3 the big picture. Can you believe it!?

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Examines economic measures used to evaluate macroeconomic performance, including GDP, inflation, and unemployment rates

Develops skills in interpreting economic data and understanding the impact of economic policies

Teaches how to use economics to analyze and address real-world economic issues

Facilitates the development of critical thinking and problem-solving skills in the context of economics

Offers a comprehensive overview of macroeconomic principles and concepts, making it suitable for beginners

Requires a solid foundation in basic economic principles

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 Principles of Economics: Macroeconomics - The Big Picture with these activities:

Learn about the Federal Reserve's monetary policy tools.

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Provides additional guidance on understanding monetary policy and its implementation.

Browse courses on Monetary Policy

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Find online tutorials on monetary policy.
Follow the steps to understand the different tools used by the Federal Reserve.
Practice applying these tools to different economic scenarios.

Practice macroeconomic calculations

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Helps students improve their understanding of macroeconomic concepts and their application.

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Calculate GDP using the expenditure approach and income approach.
Calculate inflation using the CPI and PCE.
Calculate unemployment rate and labor force participation rate.

Explain how economic growth affects developing countries.

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Promotes deep understanding of economic growth and its impact on developing countries.

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Research the economic growth of a developing country.
Analyze the factors that contribute to its economic growth.
Explain how economic growth impacts the country's social and environmental indicators.

One other activity

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Show all four activities

Develop a fiscal policy proposal to address economic recession.

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Applies knowledge of fiscal policy to solve real-world economic problems.

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Analyze the macroeconomic indicators.
Identify the causes of the recession.
Propose a fiscal policy and explain how it will address the recession.

Career center

Learners who complete Principles of Economics: Macroeconomics - The Big Picture will develop knowledge and skills that may be useful to these careers:

Economist, Policy

Economists, Policy develop and evaluate policies for government agencies. They analyze data to assess the impact of policies on the economy and society. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how policies affect the economy. The course covers topics such as fiscal policy, monetary policy, and economic growth. This knowledge is essential for economists who want to develop and evaluate policies that are effective and efficient.

See salaries and explore the career path for Economist, Policy

Teacher, Economics

Teachers, Economics teach economics to students at the high school or college level. They develop lesson plans and teach students about economic principles. This course provides a strong foundation in macroeconomic principles, which are essential for teaching economics. The course covers topics such as GDP, inflation, unemployment, and economic growth. This knowledge is essential for teachers who want to teach economics in a clear and engaging way.

See salaries and explore the career path for Teacher, Economics

Economist, Research

Economists, Research conduct research on economic issues. They analyze data to understand economic trends and develop policies that promote economic growth. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how the economy works. The course covers topics such as GDP, inflation, unemployment, and economic growth. This knowledge is essential for economists who want to conduct research on economic issues.

See salaries and explore the career path for Economist, Research

Economist

Economists study how society produces, distributes, and consumes goods and services. They analyze data to understand economic trends and develop policies that promote economic growth. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how the economy works. The course covers topics such as GDP, inflation, unemployment, and economic growth. This knowledge is essential for economists who want to develop policies that improve economic outcomes.

See salaries and explore the career path for Economist

Financial Analyst

Financial analysts provide advice to individuals and businesses on investment decisions. They analyze financial data to assess the risks and returns of different investments. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how the economy affects investment decisions. The course covers topics such as interest rates, exchange rates, and monetary policy. This knowledge is essential for financial analysts who want to make sound investment recommendations.

See salaries and explore the career path for Financial Analyst

Policy Analyst

Policy analysts develop and evaluate policies for government agencies. They analyze data to assess the impact of policies on the economy and society. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how policies affect the economy. The course covers topics such as fiscal policy, monetary policy, and economic growth. This knowledge is essential for policy analysts who want to develop effective policies.

See salaries and explore the career path for Policy Analyst

Market Research Analyst

Market research analysts study market trends to identify opportunities for businesses. They analyze data to understand consumer behavior and develop marketing strategies. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how the economy affects consumer behavior. The course covers topics such as GDP, inflation, unemployment, and economic growth. This knowledge is essential for market research analysts who want to develop effective marketing strategies.

See salaries and explore the career path for Market Research Analyst

Investment Banker

Investment bankers help companies raise capital. They analyze financial data to assess the risks and returns of different investments. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how the economy affects investment decisions. The course covers topics such as interest rates, exchange rates, and monetary policy. This knowledge is essential for investment bankers who want to help companies raise capital on favorable terms.

See salaries and explore the career path for Investment Banker

Budget Analyst

Budget analysts develop and manage budgets for government agencies. They analyze data to assess the costs and benefits of different programs. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how the economy affects government budgets. The course covers topics such as GDP, inflation, unemployment, and economic growth. This knowledge is essential for budget analysts who want to develop and manage budgets that are effective and efficient.

See salaries and explore the career path for Budget Analyst

Data Scientist

Data scientists use data to solve business problems. They analyze data to identify trends and patterns, and develop models to predict future outcomes. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how the economy affects businesses. The course covers topics such as GDP, inflation, unemployment, and economic growth. This knowledge is essential for data scientists who want to develop models that can help businesses make better decisions.

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Financial Advisor

Financial advisors provide advice to individuals and businesses on financial planning. They analyze financial data to assess the risks and returns of different investments. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how the economy affects investment decisions. The course covers topics such as interest rates, exchange rates, and monetary policy. This knowledge is essential for financial advisors who want to provide sound financial advice.

See salaries and explore the career path for Financial Advisor

Commercial Banker

Commercial bankers help businesses manage their finances. They analyze financial data to assess the risks and returns of different loans. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how the economy affects businesses. The course covers topics such as GDP, inflation, unemployment, and economic growth. This knowledge is essential for commercial bankers who want to help businesses make sound financial decisions.

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Insurance Analyst

Insurance analysts evaluate the risks and costs of insurance policies. They analyze data to assess the probability of different events and the potential financial impact of those events. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how the economy affects the insurance industry. The course covers topics such as GDP, inflation, unemployment, and economic growth. This knowledge is essential for insurance analysts who want to develop sound insurance policies.

See salaries and explore the career path for Insurance Analyst

Business Consultant

Business consultants help businesses improve their performance. They analyze data to identify areas for improvement and develop strategies to address those areas. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how the economy affects businesses. The course covers topics such as GDP, inflation, unemployment, and economic growth. This knowledge is essential for business consultants who want to develop effective strategies for their clients.

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Actuary

Actuaries use mathematics to assess the risks and costs of insurance policies. They analyze data to estimate the probability of different events and the potential financial impact of those events. This course provides a strong foundation in macroeconomic principles, which are essential for understanding how the economy affects the insurance industry. The course covers topics such as GDP, inflation, unemployment, and economic growth. This knowledge is essential for actuaries who want to develop sound insurance policies.

See salaries and explore the career path for Actuary