We will begin by discussing the set of stylized facts that collectively constitute what is known as the business cycle. These models attempt to explain boom and recessionary periods in a market clearing framework. Real GNP deviations from potential are initially the result of imperfect information and remain due to various propagation. We will also comment on the more recent developments in real business cycle theory. The second half of the course covers the Keynesian version of business cycle theory.
Primary focus is on explanations of real and nominal rigidities.
Prerequisites include Economics 402 and a working knowledge of algebra and calculus at the Math 115 level. Not open to freshmen. May not be included in the minimum 24 credits required for a concentration in economics. This course covers basic financial accounting principles for a business enterprise. Topics include the accounting cycle, merchandising accounts, asset valuation, income measurement, partnership accounting, and corporation accounting.