Application of economic principles to issues relating to military procurement and contracting, conversion of military industrial capacity to peacetime uses, wartime mobilization of industrial capacity, strategic stockpiling and economic warfare. Theories of the economic behavior of consumers and producers, the determination of final good and factor prices, market structures and general economic equilibrium. The application of price theory to business problems and public-policy issues. A course on the theories of the aggregate level of income, employment and the price level. Includes discussion of determinants of economic growth, the interaction of the domestic economy with the world economy, and the formulation and impact of monetary and fiscal policy.
Laboratories involve work with a large macroeconomic model.
Advanced topics in modern macroeconomics, including new classical, new Keynesian and expectation formation models. Introduction to macro dynamics, business cycle and growth models. Emphasis on empirical macro models. A rigorous examination of current international issues in a theoretical and empirical framework. Topics analyzed include human capital theory, occupational choice, the unemployment-inflation relationship and the wage effects of discrimination and unions.