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Titel
2
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Macro Economics and the economic goals
The first course about the economy. The purpose is to get an extended view of the economic goals and the "tools" applied by different actors.
You will, in the beginning of the course, deal with terms such as:
Demand
supply
equilibrium
price elasticity
You will also learn the relations in the economic circuit and the impact in that circuit created as a consequence of the different tools (e.g. fiscal and monetary).
We will apply statistics extensively to enhance the understanding of e.g. growth rates and other economic indicators. In this course, we will work further with the term "relevant calculation" with a specific focus e.g. regression analysis and statistical uncertainty.
This course appears to be an introductory exploration of economics, designed to give you a broad perspective on how economies function, the objectives that various players (like governments, businesses, and consumers) aim to achieve, and the methods or "tools" they use to reach those goals. It’s structured to build a foundational understanding of economic principles while introducing analytical techniques to deepen the students' understanding of the subject.
Purpose:
The main goal is to expand your view of economic systems. You’ll examine the motivations behind economic decisions—like increasing growth, stabilizing prices, or reducing unemployment—and the strategies employed by different "actors" (think governments, central banks, firms, or even households) to influence outcomes.
These strategies, or "tools," likely refer to policies such as fiscal measures (government spending and taxation) and monetary policies (interest rates and money supply control),
Key Concepts:
The course kicks off with fundamental economic terms that form the bedrock of the subject:
Demand: What consumers are willing and able to buy at various prices.
Supply: What producers are willing and able to offer at those prices.
Equilibrium Price: The price where supply matches demand, balancing the market.
Elasticity: How sensitive demand or supply is to changes in price, income, or other factors.
These concepts help you understand how markets work and how prices are determined, setting the stage for more complex ideas.
The Economic Circuit and Policy Tools:
Next, you’ll learn about the "economic circuit"—a model showing how money, goods, and services flow between households, businesses, governments, and other sectors. You’ll study how this flow is affected by tools like:
Fiscal Policy: Government decisions on taxing and spending. For instance, cutting taxes might boost consumer spending, rippling through the circuit to increase demand.
Monetary Policy: Central banks adjusting interest rates or money supply. Lowering rates could encourage borrowing and investment, stimulating economic activity.
The students will analyze the consequences of these interventions—how they might boost growth, curb inflation, or stabilize employment—and their broader impact on the circuit.
Statistical Applications
Statistics will play a big role, helping you quantify and interpret economic phenomena. The students will use data to explore: Growth Rates, how fast an economy is expanding (e.g., GDP growth), economic Indicators, metrics like unemployment rates, inflation, or consumer confidence that signal the economy’s health.
Relevant Calculation:
The course also introduces "relevant calculation," which means applying math A (in their study line) and stats to real-world economic questions. Two specific focuses stand out:
Regression Analysis: A statistical method to identify relationships between variables.
Statistical Uncertainty: Understanding the limits of your conclusions. (or margin of error)
These tools help the students to move beyond theory to test ideas empirically, making their understanding more accurate.
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