Upon successful completion of this course, students will be able to: discuss major macroeconomic issues such as economic growth, unemployment, and inflation; define and measure GDP and conduct international comparisons of economic growth; calculate unemployment and explain changes over the business cycle; construct the consumer price index (CPI) and explain its relation to inflation; identify components of the aggregate supply and demand and discuss effects of their fluctuations on the macroeconomic equilibrium; explain the Classical Model including features of the general economy at full employment; identify and discuss causes and measurement of economic growth; examine the role of money and banking institutions and the role of the Federal Reserve in controlling money supply; explain causes of inflation (demand-pull and cost-push theories and their effects on inflation); use a Phillips curve to explain the relation between inflation and unemployment in the short and long run; use Fiscal Policy doctrine to explain the federal budget and the effects of the income tax on markets and governmental budgets; use Fiscal Polity to discuss the effects of tax on savings and investments that the Federal Government uses to stabilize the price leave; and challenge and defend the credibility of monetary policy, the McCallum Rule and the Taylor Rule.