Macroeconomics: Growth and Inflation

This course begins with the various techniques used by economists to define and compute the unemployment rate using economic variables such as the total labour force and number of unemployed people. This is followed by a closer examination of the unemployment patterns in the United States, how unemployment rates have changed over time and how various groups are affected by unemployment differently. The material also discusses the variation in unemployment that the economy causes within business cycles. By using graphical models, you will understand unemployment and equilibrium in the labour market, which is followed by a discussion of the unemployment that happens when the economy is stable and there are no steep recessions or expansions. Various types of unemployment - such as frictional, structural and natural - are defined, followed by a brief explanation of some public policies related to joblessness. Next, touch on the Phillips curve that describes the relationship between inflation and unemployment.

You will look at the nature, causes and characteristics of two major economic problems: severe unemployment and inflation. Grapple with the concept of aggregate demand and how it is derived from all four sources of demand (consumption, investment, government spending and net exports). The course explains the factors that cause the AD curve to shift and discusses the two main types of equilibria in macroeconomics: short-run and long-run. Then study a macroeconomics analysis of when wages and other prices respond to economic conditions and when they don't. An elaboration on the intersection of the economy’s AD and short-run aggregate supply curves to determine equilibrium real GDP (gross domestic product) and price level in the short run is included. The course also covers the concepts of recessionary and inflationary gaps and how to restore long-run macroeconomic equilibrium.

By taking this course you will be in a position to understand the total economic output vis-a-vis inflation and unemployment. It is a great fit for anyone who has an interest in economics or wants to learn more about economic growth, inflation and unemployment.