Macroeconomics
Honors Economic Systems

How Economies Breathe — At the Honors Level

A rigorous, honors-level Macroeconomics course. From GDP to global trade — master every model, policy analysis framework, and graph — guided by Prof. David Kim and SofAI.

National Income & GDP

Master how economists measure the size and health of an economy through GDP, business cycles, unemployment, and inflation metrics.

Money, Banking & Monetary Policy

Understand how money is created, how banks work, and how the Federal Reserve uses monetary tools to stabilize the economy.

Fiscal Policy & Business Cycles

Analyze how government spending and taxation influence economic output, employment, and price levels across the business cycle.

International Trade & Finance

Explore currency markets, trade balances, and how domestic policy decisions ripple through the global economic system.

Mastery Areas

By the end of this course, you will have genuine command of four overlapping skills that economists, analysts, and policymakers use every day.

Economic Modeling

Build and interpret AD-AS, money market, and loanable funds models

Policy Analysis

Evaluate the effects of fiscal and monetary policy on economic outcomes

Graph Interpretation

Read, draw, and analyze economic graphs with precision

Real-World Application

Connect macroeconomic theory to current events and global markets

Three Assessment Types

Honors Macroeconomics assessments demand precise graph work, policy chain analysis, and the ability to connect theory to real-world events.

Draw every graph automatically

Practice the 6 core models (AD-AS, money market, loanable funds, Phillips curve, forex, PPC) until drawing them is second nature — label every axis and mark every equilibrium.

Master the policy transmission chain

When government raises spending: AD shifts right → price level rises → inflation increases → Phillips curve moves → dollar may depreciate. Practice the full chain.

Read economic news weekly

Connect Fed announcements, GDP reports, and inflation data to the models you are learning. Real-world application deepens theoretical understanding.

Distinguish fiscal from monetary policy

Fiscal = Congress (G and T). Monetary = Federal Reserve (money supply and interest rates). Always identify which actor is making the decision.

Trace cause and effect precisely

Never skip steps. When interest rates fall → investment rises → AD shifts right → real GDP increases → unemployment falls. State every link in the chain.

Use economic vocabulary precisely

Say 'interest rates rise' not 'money becomes expensive.' Say 'currency appreciates' not 'dollar gets stronger.' Precise vocabulary demonstrates mastery.

Phase 1: GDP, Business Cycle, and AD-AS Model

• Draw the AD-AS model from scratch 20 times — until it's automatic
• Master GDP expenditure approach: C + I + G + NX — know all determinants of each
• Practice identifying recessionary vs. inflationary gaps and which policy closes each
• Graph practice: 1 short response on AD-AS per week

Phase 2: Financial Sector and Stabilization Policies

• Master money market and loanable funds market — draw both in parallel showing Fed policy transmission
• Fiscal policy: trace effect from spending increase through all 4 models
• Monetary policy: trace effect from open market purchase through all 4 models
• Policy analysis: 1 extended response per week — practice complete 4-model chains

Phase 3: International Trade and Full Model Integration

• Foreign exchange market: draw supply/demand of dollars for 10 different scenarios
• Practice 5 complete multi-model chains under timed conditions
• Connect all 6 models: practice 'when X happens, trace through ALL 6 macroeconomic models'
• Current events essay: apply theory to one real-world economic news story per week

Phase 4: Mastery Review and Portfolio Completion

• Complete one full timed unit review per week across all 6 units
• Build a graph reference card: draw all 6 macroeconomic models side by side
• Current events essay: choose a recent Fed or fiscal policy decision and analyze it with 3+ models
• Final review with Prof. David (SofAI chat): oral model practice — draw each graph while explaining the economics