Contemporary economics is intertwined with mathematics. For example:
- The New Keynesian Model uses differential equations and partial derivatives to model how market equilibrium is achieved even when buyers? demand and desired production levels do not match.
- Microeconomics models how price changes for one good affect demand for another, using multivariable calculus that students should master prior to the intermediate theory course.
- Econometrics employs linear algebra to analyze data and estimate the marginal impacts of numerous variables on a particular phenomenon.
Students will demonstrate: