PRINCIPLES OF MACROECONOMICS
SELF-PACED COURSE
1. About this Course
This course covers the fundamentals of Macroeconomics that are usually covered throughout an introductory one-semester college course. The goal of the creator of this course –Modern States Education Alliance, a non-profit organization– is to prepare you to pass the College Board's CLEP examination and obtain college credit for free.
The CLEP examination places a major emphasis on understanding principles of economics that apply to an economy as a whole, particularly the general price level, output and income, and interrelations among sectors of the economy. It also highlights the determinants of aggregate demand and aggregate supply, and on monetary and fiscal policy tools that can be used to achieve particular policy objectives.
Within this context, you're expected to understand measurement concepts such as gross domestic product, consumption, investment, unemployment, inflation, inflationary gap and recessionary gap.
As College Board indicates, you're also expected to demonstrate knowledge of the institutional structure of the Federal Reserve Bank and the monetary policy tools it uses to stabilize economic fluctuations and promote long-term economic growth, as well as the tools of fiscal policy and their impacts on income, employment, price level, deficits, and interest rates.
Basic understanding of foreign exchange markets,
This exam contains approximately 80 questions to be answered in 90 minutes.
The “Principles of Macroeconomics” course is completely self-paced. There are no prerequisites to take this course, and it is entirely free.
This course is organized into seven topical chapters or modules that contain short video lessons,
2. About Helena Keefe
Helena Glebocki Keefe is Assistant Professor of Practice in the Economics Department at Fairfield University. She joined the department after completing her
Her area of expertise is in international economics, and she conducts research on emerging market economies, remittances, exchange rate markets, and central bank currency market intervention. She is also affiliated with the Center for International Policy Studies at Fordham University, working on research that facilitates international development from a multi-disciplinary perspective.
3. Required Knowledge and Skills
The CLEP exam requires you to demonstrate the following knowledge as indicated:
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Knowledge of the basic facts and terms (about 30-35 percent of the examination)
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Understanding of concepts and principles (about 30-35 percent of the examination)
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Ability to apply knowledge to specific case problems (about 30 percent of the examination)
4. Course Modules
Following are the main topics and percentages of the exam’s questions, mostly based on the College Board's description of the course:
Module 1: Basic Economic Concepts (8%–12%)
1.1 Scarcity, Choice and Opportunity Costs
1.2 Production Possibilities Curve
1.3 Comparative Advantage, Specialization, and Exchange
1.4 Demand, Supply, and Market Equilibrium
1.4.1 Supply and Demand Model
1.4.2 Supply, Demand and Market Equilibrium
Module 2: Measurement of Economic Performance (12%–16%)
2.1 Measuring a Nation's Income,
2.2 Measuring the Cost of Living, Inflation, CPI, and Prices
2.3 Unemployment
Module 3: National Income and Price Determination (15%–20%)
3.1 Aggregate Demand
3.2 Aggregate Supply
3.3 Macroeconomic Equilibrium
Module 4: Financial Sector (15%–20%)
4.1 Money,
4.1.1 Money,
4.1.2 Money and the Federal Reserve
4.1.3 Time Value of Money (Present and Future Value)
4.1.4 Banks and Creation of Money
4.1.5 Money Market and Equilibrium
4.1.6 Financial Tools: Bonds, Stocks and Other
4.2 Central Bank and Control of the Money Supply
4.2.1 Central Bank's Control of Money Supply
4.2.2 Real and Nominal Interest Rates
4.2.3 Quantity Theory of Money
Module 5: Inflation, Unemployment, and Stabilization Policies (20%–25%)
5.1 Fiscal and Monetary Policies
5.1.0 Fiscal Policy
5.1.1 Demand-Side Effects
5.1.2 Supply-Side Effects
5.1.3 Government Policy Responses to Short Run Economic Shocks
5.1.4 Government Policy Responses to Short Run Economic Shocks - Practice
5.2 Inflation and Unemployment
Module 6: Economic Growth and Productivity (5%–10%)
6.1 Understanding Productivity and Economic Growth
Module 7: Open Economy: International Trade and Finance (9%–13%)
7.1 Balance of Payments Accounts
7.2 Inflows, Outflows and Restrictions
7.3 Foreign Exchange Markets
5. How CLEP Works
Developed by the College Board, CLEP (College-Level Examination Program®) is the most widely accepted credit-by-examination program.
CLEP’s credits are accepted by 2,900 colleges and universities, according to College Board. These tests assess college-level knowledge in 33 subject areas.
Modern States Education Alliance is the non-profit organization behind these edX-style courses. Its project is called “Freshman Year for Free” and its mission is to make college more accessible and affordable through free, high-quality online education.