This course examines macroeconomic performance in the short run and the long run based on the economy’s institutional and policy environment. The first module develops a model of macroeconomy in the short run when the price level has its own momentum and does not respond much to supply and demand forces. The model enables one to see how GDP, interest rate, and exchange rate are determined in the short run and how they respond to macroeconomic shocks and policies.
This course is part of the Managerial Economics and Business Analysis Specialization
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Managerial Economics and Business Analysis SpecializationUniversity of Illinois at Urbana-ChampaignAbout this Course
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Course 4 of 7 in the
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Beginner Level
Approx. 16 hours to complete
English
Subtitles: English
Shareable Certificate
Earn a Certificate upon completion
100% online
Start instantly and learn at your own schedule.
Course 4 of 7 in the
Flexible deadlines
Reset deadlines in accordance to your schedule.
Beginner Level
Approx. 16 hours to complete
English
Subtitles: English
Offered by
University of Illinois at Urbana-Champaign
The University of Illinois at Urbana-Champaign is a world leader in research, teaching and public engagement, distinguished by the breadth of its programs, broad academic excellence, and internationally renowned faculty and alumni. Illinois serves the world by creating knowledge, preparing students for lives of impact, and finding solutions to critical societal needs.
Start working towards your Master's degree
This course is part of the 100% online Master of Business Administration (iMBA) from University of Illinois at Urbana-Champaign.
If you are admitted to the full program, your courses count towards your degree learning.
Syllabus - What you will learn from this course
1 hour to complete
Course Orientation
You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.
1 hour to complete
1 video (Total 7 min), 4 readings, 1 quiz
4 readings
Syllabus10m
About the Discussion Forums10m
Glossary10m
Updating Your Profile10m
1 practice exercise
Orientation Quiz30m
5 hours to complete
Module 1: Aggregate Expenditure and GDP in the Short Run When Prices Are "Sticky"
What determines the GDP? In the previous course on Macroeconomic Variables and Markets, we saw how the exchange rate and the interest rate are determined given the real income, aggregate price level, and expectations about the future. This module focuses on GDP determination in the short run, which is a critical step in understanding macroeconomic fluctuations and the role of stabilization policies. Long-run trends, expectations, and price level movements will be examined in subsequent modules.
5 hours to complete
8 videos (Total 88 min), 2 readings, 5 quizzes
8 videos
1-1.1. The Determinants of "Preferred" Consumption Expenditure15m
1-1.2. The Determinants of "Preferred" Investment and Net Exports12m
1-2.1. Aggregate "Preferred" Expenditure and Equilibrium Income16m
1-2.2. Interest Rate and Equilibrium Income8m
1-3.1. Equilibrium Income and Fiscal and Monetary Policies in the Short Run13m
1-3.2. Aggregate Demand Shocks and Policy Responses in the Short Run13m
1-3.3 Short-Run Consequences of Temporary Changes in the Price Level and Other Exogenous Variables5m
2 readings
Module 1 Overview10m
Module 1 Readings10m
4 practice exercises
Lesson 1-1 Practice Quiz30m
Lesson 1-2 Practice Quiz30m
Lesson 1-3 Practice Quiz30m
Module 1 Quiz30m
2 hours to complete
Module 2: Expectations and the Long-Run Exchange Rate
Where do expectations about the future of economic variables come from? This question is important because expectations matter a great deal in the choices made by economic agents at every point in time. This is quite easy to see in the connection between the exchange rate in the spot market at each moment and the expected exchange rate in the future spot market. In this module, we examine the formation of exchange rate expectations based on a model of long-run equilibrium in the foreign exchange market. The model turns out to be very insightful regarding the factors that drive the real exchange rates and competitiveness of economies over the years.
2 hours to complete
4 videos (Total 32 min), 2 readings, 3 quizzes
4 videos
2-1.1. Expectations5m
2-2.1. Modeling the Long-Run Exchange Rates11m
2-2.2. Finding The Drivers of the Real Exchange Rate in the Long Run13m
2 readings
Module 2 Overview10m
Module 2 Readings10m
3 practice exercises
Lesson 2-1 Practice Quiz30m
Lesson 2-2 Practice Quiz30m
Module 2 Quiz30m
4 hours to complete
Module 3: Long-Run Economic Performance and Short-Run Adjustments
Why are some nations so much poorer than others? Why do some countries manage to grow fast over decades while others stagnate? What determines the real per capita income in a country in the long run? One goal of this module is to examine these fundamental questions in economics. The module also discusses the relationship between short-run and long-run equilibria and shows how the process of adjustment may lead to macroeconomic instability. It ends by examining the role of monetary and fiscal policies in stabilizing or destabilizing the economy as it goes through the adjustment process.
4 hours to complete
8 videos (Total 88 min), 2 readings, 4 quizzes
8 videos
3-1.1. Understanding the Long-Run Output11m
3-1.2. The Determinants of Production Capacity: Resources and Technology7m
3-1.3. The Determinants of Production Capacity: Institutions17m
3-2.1. Equilibrium Income and the Production Capacity: The Short Run vs. the Long Run17m
3-2.2. Aggregate Demand Shocks and Macroeconomic Stabilization Policies13m
3-2.3. Aggregate Supply Shocks and Macroeconomic Stabilization Policies9m
3-2.4. Applying the Macroeconomic Model to the Analysis of US Economy10m
2 readings
Module 3 Overview10m
Module 3 Readings10m
3 practice exercises
Lesson 3-1 Practice Quiz30m
Lesson 3-2 Practice Quiz30m
Module 3 Quiz30m
3 hours to complete
Module 4: Institutions and Macroeconomic Policies
Some countries seem to be much more prone to macroeconomic crises and stagnation than others. Why do policymakers in some countries fail to follow more productive and stabilizing policies? What roles do a country’s politics and institutions play in the policy choices by the government and the central bank? What factors and variables do we need to know about in order to be able to assess a country’s long-term macroeconomic prospects?
3 hours to complete
4 videos (Total 46 min), 2 readings, 4 quizzes
4 videos
4-1.1. Desirable Monetary and Fiscal Policies6m
4-2.1. Macroeconomic Policies and Political Decision-Making18m
4-3.1. How Can Countries Commit to Good Macroeconomic Policies?19m
2 readings
Module 4 Overview10m
Module 4 Readings10m
4 practice exercises
Lesson 4-1 Practice Quiz30m
Lesson 4-2 Practice Quiz30m
Lesson 4-3 Practice Quiz30m
Module 4 Quiz30m
Reviews
TOP REVIEWS FROM COUNTRY LEVEL ECONOMICS: POLICIES, INSTITUTIONS, AND MACROECONOMIC PERFORMANCE
by JHJun 16, 2020
Great delivery of the information, I have a much clearer understanding of Fiscal and Monetary Policies and the advantages and disadvantages that each of them present.
by VSJul 9, 2018
Great course! Gives you a great start to understanding the rationale underlying economic events in the country and the world! Excellent complement to MicroEconomics
by RJun 29, 2020
i was not knowing more about the countries ECONOMY AND THE POLICIES BUT FROM THIS COURSE I HAVE LEARNT A LOT THANK U FOR THIS BECAUSE IT WAS SO USEFUL
by RKMar 12, 2020
Very thorough course. The approach is really geared towards learning and understanding the material with the short but thought-provoking assignment.
About the Managerial Economics and Business Analysis Specialization
In order to effectively manage and operate a business, managers and leaders need to understand the market characteristics and economic environment they operate in. In this Specialization, you will build a solid understanding of the operation of markets and the macro-economic environment with real-world examples. You will be able to identify firm and country-level economic factors that impact business decisions, develop an analytical framework using statistical tools, and apply economic theory and data in the analysis of business environment and trends to make effective business decisions.
The capstone project involves an in-depth analysis of an actual business situation in which you will examine the global economic environment of a business. The final project will be a business plan that uses statistical tools and economic theory to create a comprehensive analysis of the microeconomic and macroeconomic environment in which the focal company operates.
This Specialization is part of the University of Illinois Masters of Business Administration degree program, the iMBA. Learn more about the admission into the program here and how your Coursera work can be leveraged if accepted into the program. You can also start with for-credit courses within the Illinois iMBA degree program.
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What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
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Is financial aid available?
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