Overview of Macroeconomics

Course description

This free online course on macroeconomics describes the flow of resources within an economy and explores the factors surrounding demand, supply and equilibrium. It also demonstrates the relationship between gross domestic product and economic well being. By the end, you will be able to describe and understand the circular flow of income within an economy and understand the impact of macroeconomics.

This course begins with an extensive discussion of two key economic aspects - supply and demand - and shows how supply curves and schedules fluctuate based on the effects of prices and quantity changes. This is followed by a discussion of the combination of demand and supply to achieve equilibrium price and quantity. A closer look at circular flow models provides a clear picture of how markets work and how they are related to each other. The material also explains why and how some commodity prices require government intervention in the determination of equilibrium prices and quantities, followed by a look at other factors that affect commodity demand such as income and population. Using various practical scenarios and graphs, the course covers aspects of demand shifters and how they cause a change in demand.

Next, you study the differences between macroeconomics and microeconomics. Emphasis is put on the measure of economic growth and the law of diminishing returns, followed by a deeper explanation of the flow of money among the different sectors of the economy. The circular flow of income is further expanded to show the relationship between all economic components in the determination of GDP (gross domestic product). Each component that makes up GDP is explained with an introduction to an alternate measure of output: the gross national product (GNP). Each of the following will be closely examined: personal consumption, gross private domestic investment, government purchases and net exports. You will grapple with the relationship between GDP, economic well-being and regional living standards. Finally, the course explores the three main techniques for measuring GDP and expounds on the following key components of the GDI (gross domestic income): employee compensation, profits, rental income, net interest, depreciation and indirect taxes.

By taking this course you will be in a position to understand how the economic environment impacts our standards of living. This course is a great fit for anyone who has an interest in economics or wishes to learn more about regional economic well-being.