Principles of Macroeconomics

Complete syllabus

Every chapter and lesson

1. 01

   Chapter 1 · 3 lessons

   Measuring the Economy

   1. 1.1

      GDP & national income

      9 min · Quick check

      Lesson goal: By the end you can define Gross Domestic Product and understand its components.

      • Define Gross Domestic Product (GDP) and its significance in measuring economic performance.
      • Identify the components of GDP: consumption, investment, government spending, and net exports.
      • Explain how GDP is calculated using the expenditure approach.
   2. 1.2

      Inflation & the CPI

      9 min · Quick check

      Lesson goal: By the end you can explain inflation and how it is measured using the Consumer Price Index.

      • Define inflation and its impact on the economy.
      • Explain the concept of the Consumer Price Index (CPI) and its role in measuring inflation.
      • Describe how the CPI is calculated and the importance of a base year.
   3. 1.3

      Unemployment

      8 min · Quick check

      Lesson goal: By the end you can understand unemployment and its measurement.

      • Define unemployment and distinguish between different types of unemployment: frictional, structural, and cyclical.
      • Explain how the unemployment rate is calculated and what it indicates about the economy.
      • Discuss the implications of high unemployment rates on economic health.
2. 02

   Chapter 2 · 3 lessons

   The Real Economy in the Long Run

   1. 2.1

      Production & growth

      9 min · Quick check

      Lesson goal: By the end you can explain the relationship between production and economic growth.

      • Define production and its importance in the economy.
      • Identify the factors that contribute to economic growth.
      • Discuss the role of technology in enhancing productivity.
      • Explain how labor and capital influence production levels.
   2. 2.2

      Saving, investment & the financial system

      9 min · Quick check

      Lesson goal: By the end you can analyze the roles of saving and investment in the financial system.

      • Define saving and investment and their significance in the economy.
      • Explain how the financial system facilitates saving and investment.
      • Discuss the impact of interest rates on saving and investment decisions.
      • Identify the relationship between saving, investment, and economic growth.
   3. 2.3

      Finance & present value

      8 min · Quick check

      Lesson goal: By the end you can apply the concept of present value in financial decision-making.

      • Define present value and its importance in finance.
      • Explain the formula for calculating present value.
      • Discuss the concept of discounting future cash flows.
      • Apply present value calculations to real-world financial scenarios.
3. 03

   Chapter 3 · 3 lessons

   Money & Prices

   1. 3.1

      The monetary system & banks

      9 min · Quick check

      Lesson goal: By the end you can explain the structure and functions of the monetary system and banks.

      • Define the monetary system and its components.
      • Identify the role of banks in the monetary system.
      • Explain how banks create money through lending.
   2. 3.2

      The Federal Reserve

      9 min · Quick check

      Lesson goal: By the end you can describe the functions and significance of the Federal Reserve.

      • Define the Federal Reserve and its purpose.
      • Identify the main functions of the Federal Reserve.
      • Explain how the Federal Reserve influences the economy.
   3. 3.3

      Inflation: causes & costs

      8 min · Quick check

      Lesson goal: By the end you can analyze the causes and costs of inflation.

      • Define inflation and its measurement.
      • Identify the main causes of inflation.
      • Discuss the economic costs associated with inflation.
4. 04

   Chapter 4 · 3 lessons

   Short-Run Fluctuations

   1. 4.1

      Aggregate demand & supply

      9 min · Quick check

      Lesson goal: By the end you can explain the concepts of aggregate demand and aggregate supply and their interaction in the economy.

      • Define aggregate demand and its components.
      • Define aggregate supply and its determinants.
      • Explain the equilibrium in the aggregate demand and supply model.
      • Discuss shifts in aggregate demand and supply curves and their economic implications.
   2. 4.2

      The business cycle & recessions

      9 min · Quick check

      Lesson goal: By the end you can describe the business cycle and identify the characteristics of recessions.

      • Define the business cycle and its phases: expansion, peak, contraction, and trough.
      • Identify the indicators of economic recessions.
      • Discuss the causes and effects of recessions on the economy.
      • Explain how government policies can respond to recessions.
   3. 4.3

      Inflation & unemployment tradeoff

      8 min · Quick check

      Lesson goal: By the end you can analyze the tradeoff between inflation and unemployment.

      • Define inflation and unemployment and their measurement.
      • Explain the Phillips curve and its implications for economic policy.
      • Discuss the short-run and long-run tradeoff between inflation and unemployment.
      • Analyze real-world examples of inflation and unemployment relationships.
5. 05

   Chapter 5 · 3 lessons

   Policy & the Open Economy

   1. 5.1

      Fiscal policy

      9 min · Quick check

      Lesson goal: By the end you can explain the role of fiscal policy in managing economic activity.

      • Define fiscal policy and its components: government spending and taxation.
      • Discuss how fiscal policy can influence aggregate demand.
      • Examine the effects of expansionary and contractionary fiscal policies on the economy.
   2. 5.2

      Monetary policy in action

      9 min · Quick check

      Lesson goal: By the end you can analyze the implementation of monetary policy and its effects on the economy.

      • Define monetary policy and its tools: interest rates and money supply.
      • Explain how central banks use monetary policy to stabilize the economy.
      • Assess the impact of monetary policy on inflation and unemployment.
   3. 5.3

      Trade & exchange rates

      8 min · Quick check

      Lesson goal: By the end you can evaluate the relationship between trade and exchange rates.

      • Define trade and exchange rates and their significance in the global economy.
      • Discuss how exchange rates affect international trade flows.
      • Analyze the impact of currency appreciation and depreciation on trade balances.