Intermediate Macroeconomic Theory

Unit 1 – Intro to Macroeconomics

Unit 2 – National Income & Product Accounts

Unit 3 – Economic Growth

Unit 4 – Consumption and Investment Decisions

Unit 5 – Unemployment

Unit 6 – Inflation

Unit 7 – Aggregate Demand & Supply Analysis

Unit 8 – Fiscal Policy

Unit 9 – Monetary Policy

Unit 10 – International Trade and Finance

Unit 11 – Business Cycles

Unit 12 – Macroeconomic Policy Debates

## What do you learn in Intermediate Macroeconomic Theory

Intermediate Macro dives into the big picture of how economies work. You'll explore economic growth, inflation, unemployment, and fiscal and monetary policies. The course covers models like IS-LM and AD-AS, and delves into open economy macroeconomics. You'll analyze how government decisions and global events impact national economies.

## Is Intermediate Macroeconomic Theory hard?

Intermediate Macro can be challenging, especially if you're not a math fan. It involves a lot of graphs, models, and some calculus. The concepts can get pretty abstract, which trips up some students. But if you keep up with the material and practice problem-solving, it's totally manageable. Most students find it harder than intro courses, but not as brutal as some upper-level econ classes.

## Tips for taking Intermediate Macroeconomic Theory in college

1. Use [Fiveable Study Guides](https://fiveable.me/cram-mode) to help you cram 🌶️
2. Draw out the models and graphs yourself - don't just stare at them in the book
3. Stay on top of current economic news - it helps make the concepts more real
4. Practice, practice, practice with problem sets - especially IS-LM and AD-AS models
5. Form a study group to tackle tough concepts together
6. Use online resources like Khan Academy for extra explanations
7. Watch "The Big Short" for a real-world look at macroeconomic crises
8. Read "The Undercover Economist" by Tim Harford for accessible macro insights

## Common pre-requisites for Intermediate Macroeconomic Theory

1. Principles of Macroeconomics: This intro course covers basic economic concepts and models. It lays the foundation for understanding how economies function on a national and global scale.

2. Calculus I: You'll need a solid grasp of derivatives and basic calculus concepts. This math background is crucial for understanding more complex economic models and optimization problems.

## Classes similar to Intermediate Macroeconomic Theory

1. International Economics: Focuses on trade theory, exchange rates, and global economic policies. You'll learn about comparative advantage, trade barriers, and how countries interact economically.

2. Money and Banking: Dives deep into monetary policy, financial markets, and banking systems. It's like macro's cooler cousin that hangs out on Wall Street.

3. Economic Growth and Development: Explores why some countries are rich and others are poor. You'll study theories of economic growth and policies for development.

4. Public Finance: Examines government spending, taxation, and debt. It's like macro with a focus on how government decisions impact the economy.

## Majors related to Intermediate Macroeconomic Theory

1. Economics: Focuses on understanding how resources are allocated and decisions are made in markets and economies. Students learn to analyze economic data, policies, and trends.

2. Business Administration: Covers a broad range of business topics including finance, marketing, and management. Macroeconomic knowledge is crucial for understanding the business environment.

3. Political Science: Studies government systems, political behavior, and public policies. Understanding macroeconomics is key for analyzing how economic policies impact political decisions and vice versa.

4. International Relations: Examines global politics, diplomacy, and cross-cultural interactions. Macroeconomic theory helps in understanding global economic systems and their impact on international relations.

## What can you do with a degree in Intermediate Macroeconomic Theory?

1. Economic Analyst: Analyzes economic trends, creates forecasts, and provides insights for businesses or government agencies. You'll crunch numbers and interpret data to help guide decision-making.

2. Policy Advisor: Works with government officials to develop and evaluate economic policies. You'll use your macro knowledge to help shape decisions that impact entire economies.

3. Investment Banker: Helps companies and governments raise capital by issuing and selling securities. Your understanding of macroeconomic trends will be crucial in advising clients and making investment decisions.

4. Financial Journalist: Reports on economic news and trends for media outlets. You'll use your macro knowledge to explain complex economic concepts to the general public.

## Intermediate Macroeconomic Theory FAQs

1. How much math is involved in Intermediate Macro? There's definitely more math than in intro courses, including some calculus and algebra. But it's not all number crunching - you'll also need to interpret graphs and understand theoretical concepts.

2. Can I use a graphing calculator in exams? This varies by professor, but many allow basic calculators. Some might even let you use graphing calculators, but don't count on it.

3. How does this course differ from Intermediate Microeconomics? While micro focuses on individual markets and decision-making, macro looks at the big picture of entire economies. You'll deal with larger scale concepts and national/global economic issues.

Economics

1.1 Macroeconomic Concepts and Measurement

1.2 Macroeconomic Models and Analysis

2.1 Measuring Gross Domestic Product (GDP)

2.2 Components of GDP

2.3 Real vs. Nominal GDP

2.4 Limitations and Alternative Measures of National Income

3.2 Solow Growth Model

3.1 Determinants of Economic Growth

3.3 Endogenous Growth Theory

3.4 Growth Accounting

4.1 Consumption Function

4.2 Theories of Consumption

4.3 Investment Function

4.4 Determinants of Investment

5.3 Causes and Consequences of Unemployment

5.1 Types and Measurement of Unemployment

5.2 Natural Rate of Unemployment

6.2 Causes of Inflation

6.3 Consequences of Inflation

6.1 Measurement of Inflation

6.4 Phillips Curve

7.1 Aggregate Demand (AD) Curve

7.2 Aggregate Supply (AS) Curve

7.3 Equilibrium in the AD-AS Model

7.4 Shifts in AD and AS Curves

8.1 Government Budget and Fiscal Stance

8.2 Fiscal Policy Tools

8.3 Multiplier Effect

8.4 Crowding Out Effect

8.5 Ricardian Equivalence

9.1 Money Supply and Money Demand

9.2 Central Banking and Monetary Policy Tools

9.3 Transmission Mechanisms of Monetary Policy

9.4 Effectiveness and Limitations of Monetary Policy

10.1 Balance of Payments

10.2 Exchange Rates

10.3 Purchasing Power Parity (PPP)

10.4 International Capital Flows

11.1 Phases of the Business Cycle

11.2 Theories of Business Cycles

11.3 Stabilization Policies

12.1 Classical vs. Keynesian Perspectives

12.3 Monetary Policy vs. Fiscal Policy

12.4 Policy Coordination and Independence

12.2 Rules vs. Discretion in Macroeconomic Policy

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