ECON221: Macroeconomics Exam Prep

Macroeconomics explains how economies behave as a whole—how inflation evolves, how unemployment moves, why growth accelerates or stalls, and how policy choices reshape outcomes. For ECON221 (Macroeconomics), exams typically test your ability to use core models (from classical to Keynesian and to open-economy frameworks), interpret graphs, and evaluate policy trade-offs with disciplined reasoning. This study guide focuses on what tends to matter most in South African university and TVET assessments: model interpretation, derivations you can write under time pressure, and application to local realities such as fiscal constraints, electricity load-shedding shocks, exchange-rate movements, and business-cycle volatility.

Section 1: Core Macroeconomic Measurement and the Circular-Flow Logic (South Africa–aligned foundations)

A strong macro exam performance starts with definitions and measurement. Many “model” questions are actually “measurement” questions in disguise: you need to know what GDP means, how inflation is measured, why employment statistics can differ from your intuition, and how government budgets relate to national income accounting.

What ECON221 Expects You to Know First

In most ECON221 curricula (and in SA assessments generally), you should be comfortable with:

National income accounting identity (income = expenditure = output)
GDP concepts: nominal vs real, GDP vs GNP (if covered), and expenditure approach
Inflation measurement: CPI construction and index interpretation
Unemployment concepts: official definitions, labour-force participation, and employment status
Interest rates and exchange rates: how they connect to savings/investment and inflation expectations
Real vs nominal variables: the exam will test whether you distinguish them properly

If you can correctly translate a scenario (e.g., “prices rise faster than wages” or “the rand depreciates”) into the relevant macro variables, you win marks even before graphs appear.

GDP: The Exam’s Favourite Identity

At the foundation level, GDP can be represented using the expenditure approach:

[
Y = C + I + G + (X – M)
]

Where:

(Y) = real GDP (output)
(C) = household consumption
(I) = investment (often includes private fixed investment, inventory changes)
(G) = government spending on goods and services
(X) = exports
(M) = imports
(X – M) = net exports

Nominal GDP vs Real GDP

Nominal GDP measures output valued at current prices.
Real GDP adjusts for inflation using a base year price index.

A typical exam move: given nominal GDP and a price index, compute real GDP growth.

Mini Example (Index Method)

Suppose nominal GDP increases from R100 billion to R120 billion, and the GDP deflator increases from 100 to 110. Real GDP roughly:

Base year deflation: Real GDP in final year = (120 \div (110/100) = 109.09)
Growth in real terms = ( (109.09 – 100) / 100 = 9.09% )

If inflation is high, nominal changes can look large while real output barely moves; exams often test that you can see through price effects.

Inflation: Interpreting CPI and “Real” Outcomes

Inflation is typically measured via CPI (Consumer Price Index). Key conceptual pitfalls:

CPI measures the cost of a representative basket of goods and services.
Inflation rate is the percentage change in the CPI level over time:
[
\pi_t = \frac{CPI_t – CPI_{t-1}}{CPI_{t-1}}
]
Expected inflation matters because wage bargaining, contracts, and interest rates incorporate expectations.

Why South Africa Context Matters

South African macro exam questions often use narratives like:

food price spikes,
fuel price pass-through,
VAT adjustments,
exchange-rate depreciation raising import prices.

Even if your course is theoretical, the exam will frequently embed these stories to test your intuition about supply shocks vs demand shocks.

Unemployment and Labour Force: Beyond the Headline Rate

The unemployment rate is:

[
u = \frac{\text{Unemployed}}{\text{Labour Force}}
]

Where:

labour force = employed + unemployed
“not in labour force” (discouraged workers) are excluded.

Two students may both say “unemployment is high,” but for exam scoring, you must know:

unemployment can fall due to lower participation (e.g., people giving up job search),
unemployment can rise even if employment rises, if labour force growth is faster,
youth unemployment often behaves differently from overall unemployment due to schooling cycles and job-market matching.

The Circular Flow: A Map for Macro Reasoning

The macro circular flow links households, firms, government, and the foreign sector:

Households supply labour and receive wages; they demand consumption goods.
Firms produce goods and pay wages.
Government collects taxes and purchases goods/services.
Rest of the world enters through exports/imports and capital flows.

This circular logic becomes crucial later when you interpret:

budget deficits and their macro spillovers,
the meaning of savings and investment,
how international borrowing/lending affects domestic demand.

Savings, Investment, and the Current Account (Bridge to Open Economy)

In many exam treatments, you connect national saving (S), investment (I), and net exports (or the current account) through:

[
S = I + (M – X)
]
Rearranged:
[
S – I = M – X = -(X – M)
]

Interpretation:

If (X > M), the country exports more than it imports (net exports positive), which aligns with net saving/investment conditions differently than when (X < M).
If a country runs a current account deficit, it implies it is financing consumption/investment partly through foreign capital inflows.

For an exam: If asked “what does a current account deficit imply about capital flows?”, you should answer using the consistent identity logic rather than vague rhetoric.

Section 2: The Short-Run Macroeconomy—Keynesian Cross, IS-LM Logic, and Graph Interpretation

Once measurement is secure, exams shift to the short-run determination of output and the role of demand management. In ECON221, the core is usually Keynesian cross and then a move into interest-rate and money-market frameworks (often described as IS-LM in some form).

Keynesian Cross: Output Determination via Aggregate Demand

In the simplest Keynesian cross (sometimes taught as “planned expenditure model”), output is determined by the intersection of:

Planned aggregate expenditure (AE)
and output (Y)

A common setup:

[
AE = C + I + G
]
and consumption is:
[
C = a + b(Y – T)
]

Where:

(a) is autonomous consumption,
(b) is marginal propensity to consume (MPC),
(T) is taxes (possibly fixed in a basic model).

Then equilibrium output satisfies:
[
Y = AE
]

The Multiplier

Substitute:
[
Y = a + b(Y – T) + I + G
]
Solve for (Y):
[
Y = \frac{a + I + G – bT}{1-b}
]

The multiplier is:
[
k = \frac{1}{1-b}
]

Example: If (b = 0.8), then (k = 1/(1-0.8)=5). A R10 billion increase in government spending increases equilibrium output by R50 billion in the model (holding prices constant).

Exams like to test reasoning:

higher MPC → bigger multiplier → larger output response,
higher taxes (if consumption depends on disposable income) reduce the demand effect.

Demand Shocks vs Policy Shocks: How to Write It in an Exam

A typical policy question: “Explain the impact of increased government spending in the Keynesian cross model.”

A high-scoring answer:

Write equilibrium condition (Y = AE)
Show that (G) increases (AE)
Output rises to restore equality
Explain multiplier effects and marginal consumption channel
Mention assumptions: price level fixed, short-run rigidity

A counterpoint (often asked or implied):

In reality, higher spending may crowd out private activity through interest rates, taxes, or supply constraints.
If the economy has capacity limits, price pressures may emerge, violating model assumptions.

The IS Curve: Output and the Interest Rate Connection

In IS-LM logic:

IS represents combinations of output (Y) and interest rate (r) where the goods market is in equilibrium.
Higher interest rates reduce investment (I(r)) and hence reduce planned expenditure.

A compact form might look like:
[
Y = C(Y – T) + I(r) + G
]

Graph interpretation:

When (r) increases, investment falls → equilibrium output decreases → IS slopes downward.

Common exam errors:

confusing movement along IS with shifting IS,
mixing up why a policy affects the IS curve vs the LM curve.

The LM Curve: Money Market Equilibrium

LM represents combinations of (Y) and (r) such that money demand equals money supply.

A typical money demand:
[
\frac{M^d}{P} = L(Y, r)
]
Money supply (M^s) is given (in many versions).

If (Y) rises:

transaction demand for money increases,
to restore money market equilibrium, the interest rate must rise (depending on model assumptions).
Thus LM slopes upward: higher (Y) associates with higher (r).

If the central bank increases money supply:

LM shifts right (or downward), leading to lower interest rates for any given output.

The IS-LM Equilibrium: Interest Rate Meets Output

At IS-LM intersection:

goods market balanced (IS),
money market balanced (LM).

Exam questions often ask for comparative statics such as:

impact of fiscal expansion (increase (G)),
impact of monetary expansion (increase (M)),
combined policies.

Fiscal Expansion in IS-LM (Intuition + Graph Steps)

If (G) increases:

IS shifts right (more planned expenditure at each interest rate)
At new IS, equilibrium requires both markets balance
Output rises, interest rate rises too (in standard textbook model)
Higher interest rate can crowd out some investment (“crowding out”)

The result may be:

moderate output increase if monetary policy is passive,
or large output increase if monetary policy accommodates.

A strong answer distinguishes:

crowding out through higher (r),
and multiplier effects through consumption/investment channels.

Monetary Policy: Why the Same Policy Can Produce Different Outcomes

A monetary expansion (increase (M^s)) shifts LM right:

interest rate falls,
investment increases,
output increases.

However, exam questions sometimes explore interest-rate sensitivity:

If investment is not sensitive to interest rates (flat (I(r))), monetary policy is less powerful.
If money demand is highly sensitive to interest rates (steep LM), output may respond weakly or strongly depending on the slope and shifts.

Counter-Arguments: Classical vs Keynesian Views

Exams frequently include “evaluate” prompts. You should be able to contrast:

Keynesian short-run rigidity (prices and wages sticky) → demand determines output.
Classical/Neoclassical flexibility (prices/wages adjust) → policy affects mostly nominal variables and inflation, not real output long-run.

Key nuance to write:

In the short run, output may respond strongly.
In the long run, output is pinned down by supply-side factors (technology, capital, labour, institutions).

Linking Back to Inflation Expectations

Even if your current model is “fixed prices,” exam questions can ask you to connect:

Persistent demand expansion may increase inflation eventually.
If policy leads to sustained high output above potential, upward price pressures emerge.

When you answer, use the language:

“transition from short-run equilibrium to long-run equilibrium,”
“output gap closes,”
“inflation rises if demand outpaces productive capacity.”

Section 3: AS-AD, Aggregate Supply/Inflation Dynamics, and Policy Trade-offs in the Medium Run

The next layer is the bridge between real variables (output gaps) and inflation dynamics via the Aggregate Supply–Aggregate Demand (AS-AD) framework. Even if your exam doesn’t demand a fully-fledged Phillips curve, you must understand how shifts in AD and AS create combinations of output and inflation.

AD Curve: What Shifts Aggregate Demand?

The AD curve can be motivated from the IS-LM or from general demand reasoning. In many ECON221 courses, you should know the qualitative logic:

higher interest rates reduce investment and dampen consumption,
currency depreciation can raise net exports but raise import prices,
fiscal expansions raise demand,
uncertainty can reduce consumption and investment.

While the AD curve shows the inverse relationship between price level and real output, exam questions often focus on shifts rather than movements along AD.

Sources of AD Shifts You May Be Asked to Identify

Fiscal policy: increase in (G) → AD shifts right.
Monetary policy: higher money supply or lower policy rates → AD shifts right.
Exchange rate effects:
- depreciation can increase exports, decrease imports → AD right,
- but higher import prices may also affect costs and future AS.
Confidence and uncertainty:
- if firms expect weak demand, investment falls → AD shifts left.

AS Curve: Short-Run and Long-Run Supply

A common decomposition:

Short-run aggregate supply (SRAS) is upward sloping due to wage/price stickiness.
Long-run aggregate supply (LRAS) is vertical at potential output (full-employment output).

Why SRAS slopes upward:

higher price levels allow firms to produce more profitably given sticky nominal wages,
output deviates from potential when real variables and expectations adjust.

Inflation Dynamics: Supply Shocks vs Demand Pull

A key exam theme: distinguishing:

demand-pull inflation (AD shifts right),
cost-push or supply-side inflation (SRAS shifts left).

Demand Pull (AD Right)

Suppose AD shifts right:

equilibrium output rises above potential,
inflation increases.

Graphically:

price level increases and output rises.

Supply Shock (AS Left)

Suppose SRAS shifts left (e.g., due to oil price increase or labour disruptions):

price level increases (inflation rises),
output falls (recessionary effect).

This is exactly the logic applied to many real-world episodes:

energy and input cost increases can raise the price level while reducing real output.

The Output Gap: Why It’s Central

Define the output gap:
[
\text{Output gap} = Y – Y^*
]
where (Y^*) is potential output.

Policy relevance:

If (Y > Y^*), the economy overheats: inflation pressure rises.
If (Y < Y^*), unemployment increases or labour demand slackens: inflation pressure may ease.

Exams often ask you to “explain how policy affects inflation through the output gap.” A high-scoring answer:

identify the direction of (Y – Y^*),
describe how inflation responds,
link to stabilization policy and long-run correction.

Policy Trade-offs: The “Stagflation” Trap

A classic dilemma appears if the economy faces a supply shock:

SRAS shifts left → inflation up while output down.
Demand management (e.g., contractionary policy) might reduce inflation but worsen output further.
Expansionary policy might raise output but potentially exacerbate inflation.

A disciplined evaluation response should include:

recognize shock type (demand vs supply),
identify which curves shift,
propose policy that addresses the root cause (e.g., supply-side reforms rather than only demand stimulus),
discuss short-run vs medium-run effects.

A Worked AS-AD Scenario with Explicit Logic

Consider a country experiencing:

electricity shortages (raising production costs and reducing capacity),
import price increases (due to exchange-rate depreciation),
uncertainty leading to reduced investment.

In AS-AD terms:

SRAS shifts left (costs rise, productivity/capacity effectively falls).
AD might shift left as confidence worsens and investment falls.
The equilibrium becomes ambiguous, but inflation tends to rise if SRAS shift dominates.

Your exam answer should emphasize:

why costs shift SRAS left,
why reduced confidence shifts AD left,
and why the combined effect can produce higher inflation and weaker output simultaneously.

Fiscal and Monetary Coordination

A major policy question in macro exams:

Is it enough to cut interest rates?
If supply is constrained, easier monetary policy may boost AD but worsen inflation via demand and import costs.

Thus coordination matters:

monetary policy may manage inflation,
fiscal policy may support demand but must be mindful of debt sustainability,
supply-side policies (infrastructure, competition, labour market efficiency) shift AS back.

Even when not explicitly requested, exam graders reward answers that show you understand that macro policy is a portfolio of actions, not a single lever.

Section 4: Open-Economy Macroeconomics—Exchange Rates, Capital Flows, Balance of Payments, and the Role of Trade

Many ECON221 exam questions move beyond the closed economy. South African macro discussions naturally include trade-offs involving the exchange rate, imported inflation, and capital-flow volatility. You should be able to connect real and nominal outcomes through consistent open-economy logic.

Exchange Rate Concepts You Must Keep Straight

Common terms:

Nominal exchange rate: price of one currency in terms of another (e.g., ZAR per USD).
Appreciation: domestic currency becomes stronger (fewer domestic currency units per foreign currency).
Depreciation: domestic currency becomes weaker.

Students often reverse definitions. Use the exam language carefully:

If the exchange rate rises as “ZAR per USD,” then depreciation corresponds to a higher number.

Exchange Rate Pass-Through to Inflation

A frequently tested idea:

when the domestic currency depreciates, imported goods become more expensive,
thus CPI inflation can rise through direct import prices and indirect production inputs.

Exams may ask:

“Why can depreciation raise inflation even if exports become cheaper?”
Answer:
depreciation improves price competitiveness for exports (demand-side support),
but it increases costs and consumer prices (supply/inflation channel),
net effect depends on pass-through magnitude, market power, and contract structures.

Balance of Payments: A Coherent Story of External Accounts

You may be expected to understand that the balance of payments ties to:

current account (trade in goods/services, income, transfers),
financial/capital account (capital inflows/outflows),
and reserves adjustments (if applicable).

You can also reference the identity linking savings-investment and current account:

current account deficit implies net borrowing from abroad,
which can finance domestic investment or consumption.

In exam scenarios, this often becomes:

explain how a current account deficit affects exchange rate stability or external debt.

Capital Mobility and Interest Rate Differentials

Open-economy macro often includes the idea that:

if domestic interest rates rise relative to global rates, capital may flow in,
strengthening the exchange rate (depending on expectations),
or reducing depreciation pressure.

But expectations matter:

if investors expect future depreciation, they demand a higher current yield to compensate.

So you should be able to state:

interest parity logic relates expected exchange-rate changes to interest rate differentials (if your course includes it),
risk premia can break simple parity (common in emerging markets).

The Mundell-Fleming Framework (If Covered)

Many SA macro courses include Mundell-Fleming for small open economies. Core qualitative conclusions:

Under perfect capital mobility, fiscal expansion may have a different effect under floating vs fixed exchange rates.
With floating exchange rates, monetary policy can be powerful for output because exchange rate adjusts.
With fixed exchange rates, monetary policy loses autonomy because central bank actions must defend the peg.

If your exam uses this, remember you need to:

specify exchange rate regime,
specify capital mobility assumption,
then infer output and interest-rate responses.

Even when the exact equations aren’t required, graders love correct directional logic.

Worked Directional Reasoning: Depreciation and Output

Suppose:

depreciation occurs (currency weaker),
net exports improve (X rises, M falls),
therefore AD shifts right, raising output (all else equal).

But depreciation may also:

shift SRAS left through higher import costs,
raising prices and reducing real output if supply constraints dominate.

Thus:

in the short run, depreciation can be stagflationary,
or it can support growth with limited inflation if pass-through is small and firms can adjust.

A well-written exam answer includes both channels:

demand channel (net exports),
cost channel (SRAS/imported inputs).

Policy Implications for South Africa–Aligned Scenarios

Exam questions may describe:

fiscal deficit concerns increasing risk premium,
inflation expectations becoming unanchored,
exchange-rate volatility raising uncertainty,
and foreign investors demanding higher yields.

Your policy reasoning should connect:

fiscal policy affects interest rates and risk premia,
risk premia affect exchange rate and capital flows,
exchange rate affects inflation,
inflation affects real interest rates and demand.

This layered chain is where macro earns its marks: it’s not a single sentence; it’s a sequence of consistent macro relationships.

Section 5: Labour Markets, Long-Run Growth, Business Cycles, and Exam-Ready Problem-Solving Templates

The final step is to unify short-run macro with medium/long-run ideas: potential output, growth determinants, and how labour market dynamics connect to unemployment and inflation. Exams often mix theory with structured calculations, so you need templates for solving quickly and correctly.

Labour Market Concepts in Macro Frameworks

Even if ECON221 focuses more on macro than labour economics, basic labour relationships appear:

unemployment affects output via underutilized labour,
wage dynamics influence inflation and SRAS,
labour market rigidities can make adjustment slower.

A typical exam prompt:

“Explain how a reduction in labour productivity affects potential output and the inflation rate.”

A coherent answer:

productivity shock reduces potential output (Y^*) (LRAS shifts left),
with SRAS also potentially affected, equilibrium output falls,
inflation may rise because costs per unit rise and production becomes more expensive.

Potential Output and the Long-Run Neutrality of Policy

A key macro concept:

In the long run, output returns to potential due to wage/price adjustment and expectation formation (depending on the model).
Policy affects:
- inflation,
- nominal variables,
- and possibly the path of the economy,
  but not long-run real output if potential is determined by real factors.

Your exam “evaluation” style answer should say:

short-run policies can stabilize output,
but persistent inflation requires sustained real shocks or policy failures that change expectations.

Growth Accounting Logic (If Included)

Some exam syllabi include growth theory or at least growth decomposition:

output depends on labour, capital, and technology.
You may be asked to interpret:
why investment increases growth,
why human capital matters,
why institutions affect productivity.

Even if no formal equation is required, you should discuss mechanisms:

capital deepening increases productivity,
technology improves total factor productivity,
schooling improves labour efficiency,
stable macro policy improves investment incentives.

Business Cycles: Recession and Expansion Narratives

A business cycle question often asks:

“Identify whether the shock is demand or supply,”
“Describe the path of output, employment, and inflation,”
“Propose policy.”

A strong strategy:

Determine which curve(s) shifted (AD or SRAS).
Infer direction of output and price level.
Describe unemployment movement (output below potential → unemployment up).
Provide policy evaluation consistent with the shock.

Example: Recession with Rising Inflation

AD shifts left OR SRAS shifts left.
Rising inflation points toward SRAS left dominating: a supply shock.
Policy implication:
reducing demand may reduce inflation but worsen unemployment,
supply-side interventions can be more appropriate (reduce input costs, improve logistics, energy supply).

Money, Inflation, and the Real Interest Rate

Exams often require reasoning with:

nominal interest rates,
expected inflation,
real interest rates.

Real interest rate:
[
r_{real} \approx i – \pi^e
]
where (i) is nominal policy rate and (\pi^e) expected inflation.

If inflation expectations rise:

even if nominal rates stay constant, real rates fall (or become less restrictive),
stimulating demand and potentially worsening inflation.

So when a central bank reacts, it must consider the real interest rate and inflation expectations. Your exam answer should not merely say “raise interest rates.” It should explain:

raise (i) enough so that (r_{real}) increases to dampen demand.

Exam-Ready Quant Templates (How to Structure Your Work)

To maximize marks, you need reproducible solution formats.

Template A: Keynesian Cross Calculation

Write consumption function (C = a + b(Y – T)).
Substitute into (Y = C + I + G) (closed economy) or your given AE.
Solve algebraically for (Y).
Compute changes:
- If (G) changes by (\Delta G), then (\Delta Y = k \Delta G) with (k = 1/(1-b)) (if taxes fixed and model assumptions hold).
Write interpretation:
- demand increases, output rises, unemployment falls (short-run).

Template B: Multiplier with Taxes

If taxes are lump-sum and change consumption via disposable income:

the tax multiplier is usually negative:
[
k_T = -\frac{b}{1-b}
]
If asked “what happens when taxes rise by R10 billion?”, show:
disposable income decreases → consumption decreases → output decreases.

Template C: IS-LM Comparative Statics (Directional)

When asked “what happens to output and interest rates under policy X?”, do:

identify which curve shifts (IS for fiscal, LM for monetary in standard versions),
determine direction of shift,
infer new intersection outcome:
- fiscal expansion: (Y \uparrow), (r \uparrow) (crowding out)
- monetary expansion: (Y \uparrow), (r \downarrow) (lower cost of capital)
add one assumption sentence: “prices fixed in short run,” “capital mobility as assumed,” etc.

Template D: AS-AD Shock Identification

When you see a combined movement like “inflation up, output down”:

decide whether SRAS shifted left,
determine whether AD shifted right/left,
then provide policy evaluation.

Common Exam Traps and How to Avoid Them

Confusing real and nominal variables
- “Output rose” vs “prices rose” must be kept separate.
Mixing up the sign of multipliers
- consumption depends on disposable income; tax increases reduce demand.
Graph movement vs curve shift
- Movement along a curve is caused by changing the variable that the curve holds implicit; shifts are caused by changes in other fundamentals.
Ignoring the exchange-rate regime in open-economy logic
- The same policy lever can produce different outcomes under floating vs fixed exchange rates.
Overclaiming supply shocks as demand shocks (or vice versa)
- Always anchor your shock type using the direction of output and inflation.

South African University, College, and TVET Relevance: How Marking Rubrics Often Behave

Across South African institutions, marking rubrics typically reward:

correct diagram logic,
correct algebra steps,
coherent explanations,
and consistent notation.

Even if your course materials differ (some emphasize IS-LM, some emphasize AS-AD), the exam’s grading tendency is consistent: they reward the chain of reasoning. Therefore, always:

state the model you’re using,
cite the identity/equation underpinning your steps,
show the directional effect on output and prices,
then interpret the macro consequences (unemployment, inflation, external accounts).

Rapid Revision Checklist (Last-Minute, But Still Thorough)

Before your exam, ensure you can do quickly:

Write and explain (Y = C + I + G + (X-M))
Convert nominal to real GDP using a deflator-style index method
Explain consumption as a function of disposable income and derive multiplier logic
Compute multiplier effects for changes in (G) and (if covered) taxes (T)
Describe IS shift from fiscal policy; describe LM shift from monetary policy
Interpret IS-LM intersection changes (direction of (Y) and (r))
Use AD-AS to classify demand pull vs supply shock inflation
Connect exchange rate depreciation to both net exports and inflation pass-through
Provide directional policy evaluation consistent with the identified shock type
Explain why short-run stabilization differs from long-run neutrality

Institution-Cluster Focus Note (Course/Institution Alignment)

South African learning pathways differ: universities may emphasize theory derivations and formal graph work, while some TVET-oriented programmes may stress applied macro interpretation and structured problem steps. To support that variation without fragmenting the macro content, this guide keeps the conceptual core consistent while emphasizing exam writing conventions—definitions, diagram logic, algebra steps, and policy evaluation.

If you later want this converted into a collection of institution-specific clusters (e.g., University of Pretoria ECON221-style preparation, University of Cape Town style, Wits, Stellenbosch, UNISA, or TVET-focused equivalents), provide the exact institution names and course codes used by your programme, and I’ll produce a matching set of documents where each cluster focuses on one institution and titles are keyed to that institution’s ECON221 course.