Topics covered include consumption and investment theory, the definitions and determination of national income, employment, and the price level. Also considered are the economic effects of fiscal and monetary policy. A systematic study of the role of the price system in organizing economic activity and an evaluation of its effectiveness. Topics covered within the frameworks of partial and general equilibrium analysis include consumer behavior, price determination, resource allocation, and market structure. Analysis of supply and demand for labor, the determination of wage rates, employment, working conditions, and labor force participation rates.
Emphasis is placed on the effects of unionism and government activities on the areas.
The course considers the nature and functions of money and the role of the monetary sector in the determination of income and employment. Particular attention is given to institutional frameworks, money markets, commercial banking, and deposit expansion, monetary policy, and the role of the Federal Reserve System. Selected countries are studied as examples of each system. An investigation of the theoretical and practical economic effects of governmental activities. The major types of taxes and expenditures are considered.