About this course: This course discusses how macroeconomic variables affect individuals’ personal, professional, and public activities and lays the foundation for the analysis of the mechanisms that drive macroeconomic variables. It start in its first module by introducing the key macroeconomic variables and explaining how they are defined and measured in order to enable the students to interpret macroeconomic data properly. In the second module, the course offers a perspective for separating out various parts of the economy driven by different processes and for combining those components to develop a richer view of the whole. In particular, it applies this approach to the analysis of the relationship of the trade deficit with the budget deficit and private savings, offering insights about some key determinants of the balance of payments. The third and fourth modules focus on the analyses of the foreign currency and money markets to provide fundamental models of the interest rate and exchange rate determination. They also discuss how these variables interact with each other and with the macroeconomic conditions, particularly monetary policy and the expectations about the future trends in the economy. These analyses lay the foundation for more comprehensive models of the macroeconomy in the next course of the Managerial Economics and Business Analysis Specialization. At the end of this course, you will be able to: • Systematically assess the national and international economic environment in which you live and work. • Analyze macroeconomic issues using key tools. • Be a more effective professional in your line of activity. This course is part of the iMBA offered by the University of Illinois, a flexible, fully-accredited online MBA at an incredibly competitive price. For more information, please see the Resource page in this course and onlinemba.illinois.edu.
Created by: University of Illinois at Urbana-Champaign
Taught by: Hadi Salehi Esfahani, Professor of Economics and Professor of Business Administration
Department of Business Administration, College of Business
| Basic Info | Course 3 of 7 in the Managerial Economics and Business Analysis Specialization |
| Commitment | 4 weeks of study, 4-6 hours/week |
| Language | English |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
Syllabus
WEEK 1
Course Orientation
You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.
1 video, 5 readings, 1 practice quiz
- Video: Welcome to Country Level Economics: Macroeconomic Variables and Markets!
- Reading: Syllabus
- Reading: About the Discussion Forums
- Reading: Glossary
- Practice Quiz: Orientation Quiz
- Reading: Updating Your Profile
- Discussion Prompt: Getting to Know Your Classmates
- Reading: Social Media
Module 1: Key Macroeconomic Indicators and Their Measurement
What do macroeconomic indicators like GDP, the unemployment rate, and inflation really mean? How are they measured? How should the figures for such variables be interpreted?
9 videos, 2 readings, 4 practice quizzes
- Reading: Module 1 Overview
- Reading: Module 1 Readings
- Video: Module 1 Introduction
- Video: 1-1.1. Introduction to Macroeconomic Indicators and the Sources of Macroeconomic Data
- Practice Quiz: Lesson 1-1 Practice Quiz
- Video: 1-2.1. The Unemployment Rate: Definition and Measurement
- Practice Quiz: Lesson 1-2 Practice Quiz
- Video: 1-3.1. GDP: Definition
- Video: 1-3.2. GDP: Measurement
- Video: 1-3.3. GDP: Improvements in Real GDP Measurement
- Video: 1-3.4. GDP: Comparison Across Countries
- Practice Quiz: Lesson 1-3 Practice Quiz
- Video: 1-4.1. The Price Level and Inflation: The Basics
- Video: 1-4.2. Problems in Measuring the Cost of Living Inflation
- Practice Quiz: Lesson 1-4 Practice Quiz
Graded: Module 1 Peer Review Assignment
Graded: Module 1 Quiz
WEEK 2
Module 2: GDP Components, Twin Deficits, and Balance of Payments
Expenditure is often different from income for individuals, but for the economy as a whole, aggregate income is always identical to aggregate expenditure. This has important implications for the functioning of the macroeconomy and the way policies affect it. The income-expenditure identity is also fundamental to the ways various part of the economy with different processes interact with each other. For example, it sheds a lot of light on the formation of the trade deficit and its connection with budget deficit and private savings.
5 videos, 2 readings, 3 practice quizzes
- Reading: Module 2 Overview
- Reading: Module 2 Readings
- Video: Module 2 Introduction
- Video: 2-1.1. Components of GDP
- Video: 2-1.2. The Roles of Government and the Rest of the World in the Macroeconomy
- Practice Quiz: Lesson 2-1 Practice Quiz
- Video: 2-2.1. The Fundamental Macroeconomic Identity and GDP Components
- Practice Quiz: Lesson 2-2 Practice Quiz
- Video: 2-3.1. The Balance of Payments
- Practice Quiz: Lesson 2-3 Practice Quiz
Graded: Module 2 Quiz
WEEK 3
Module 3: The Foreign Exchange Market
How does the exchange rate affect the trade balance and foreign payments of an economy? How does the exchange rate interact with domestic and foreign prices to determine the competitiveness of an economy’s producers? Where does the exchange rate come from? Since currencies are assets that can be bought and resold at different times, their exchange rates must depend on expectations and futures markets. How do the spot and forward exchange rates interact with the expected rates of future dates?
4 videos, 2 readings, 2 practice quizzes
- Reading: Module 3 Overview
- Reading: Module 3 Readings
- Video: 3-1.1. The Foreign Exchange Market Basics
- Video: 3-1.2. The Exchange Rate and Competitiveness
- Practice Quiz: Lesson 3-1 Practice Quiz
- Video: 3-2.1. Spot and Forward Markets for Foreign Exchange
- Video: 3-2.2. Current and Future Spot Markets for Foreign Exchange
- Practice Quiz: Lesson 3-2 Practice Quiz
Graded: Module 3 Peer Review Assignment
Graded: Module 3 Quiz
WEEK 4
Module 4: Money, Interest Rate, and the Exchange Rate
The interest rate determines the exchange rate, the cost of capital, and the opportunity cost of using money. How is the interest rate determined? What factors drive the supply and demand for money? What constitutes money? What role do banks play in the monetary system? How do central banks influence the money market and the interest rate?
5 videos, 2 readings, 2 practice quizzes
- Reading: Module 4 Overview
- Reading: Module 4 Readings
- Video: 4-1.1. What Is Money, and What Role Does It Play in the Economy?
- Video: 4-1.2. Money Supply
- Video: 4-1.3. Money Demand
- Practice Quiz: Lesson 4-1 Practice Quiz
- Video: 4-2.1. Money Market Equilibrium
- Video: 4-2.2. Money, Inflation, and Interest Rate in the Short Run and the Long Run
- Practice Quiz: Lesson 4-2 Practice Quiz
Graded: Module 4 Quiz
FAQs
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University of Illinois at Urbana-Champaign
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Pricing
| Audit | Purchase Course | |
|---|---|---|
| Access to course materials | Available | Available |
| Access to graded materials | Not available | Available |
| Receive a final grade | Not available | Available |
| Earn a shareable Course Certificate | Not available | Available |
Ratings and Reviews
excellent material from an extraordinary faculty and unique learning environment
Great intro to Macroeconomics. Learned so much and can apply my knowledge
Although somewhat difficult, I appreciate the non-regurgitative questions.
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AB
Great course for a beginner like me. All the concepts are explained clearly with examples. The language used is simple which makes it easy to understand.