Jigjiga University
Collage of Business and Economics
Department of Economics
Course Name: Macroeconomics
Course Code: Econ-1052
Credit H: 3 hrs.
Instructor: Ahmed M
Description
Macroeconomics
Course
Econ-1052
Course code
Cr Hrs
3
EtCTS
5
Course Description
Macroeconomics focus mainly on short run analysis of an economy or business cycle. Hence, the
main aim of this course is to present and discuss the different views of economists (as
represented by school of thought) on how an economy behaves in the short run, how equilibrium
is achieve in the short run, and the role of market forces and government in short run economic
stabilization. For this purpose, this course divided in to three parts: Introduction, aggregate
demand and supply analysis of a closed economy, and the analysis of open economy
macroeconomics.
The course also includes to discuss in to four sections to present and discuss long run analysis of
an economy or economic growth,
Course objective
In this module the students are exposed to look at the aggregate analysis of an economy and the
interrelationship between various aggregate economic variables. It also incorporates the monetary and
fiscal policy instruments through which government can influence the value and dynamics of aggregate
economic variables and thereby the performance of economies. Generally, the module enhances the
knowledge of the students regarding the functioning of the economy as a whole as well as the rest of the
world thereby to develop a closer link between academic learning and the professional practice in
analyzing various economic aspects.
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Schedules of lecture time, Topics and Reading materials
We
Lecture
ek
(Hour)
Topics Of Lecture
Main Reference
Chapter 1: The State of Macroeconomics – Introduction
6 hour
1.1 What macroeconomics is about?

N.GregoryMankiw,
2007,
1.2 Basic Concepts and Methods of Macroeconomics
Macroeconomics 4 th
Analysis
edition
1.3 Macroeconomic Goals and Instruments
 William H. Branson,
1.4 The State of Macroeconomics: Evolution and Recent
2006
Developments
Macroeconomic
Classical macroeconomics
Theory and Policy
Keynesian macroeconomics
Neo-classical macroeconomics
Chapter 2: National Income Accounting
8 hour
2.1 The concepts of GDP and GNP
2.2 Approaches of measuring national income (GDP/GNP)

N.GregoryMankiw,
2007,
2.3 Other Social Accounts (GNP, NNP, NI, PI and DI)
Macroeconomics 4 th
2.4 Nominal versus Real GDP
edition
2.5 The GDP Deflator and the Consumer Price Index

William H. Branson,
2.6 GDP and Welfare
2006
2.7 The Business Cycle
Macroeconomic
2.8 Unemployment and Inflation
Theory and Policy
Chapter 3:Aggregate Demand in the closed Economy
14 hour
3.1. Foundations of Theory of Aggregate Demand
3.2. The Goods Market and the IS curve
3.3. The Money market and the LM curve
3.4. The Short Run Equilibrium
3.5. From the IS-LM to Aggregate demand

N.GregoryMankiw,2
007,
Macroeconomics 4 th
edition
 William H. Branson,
2006 Macroeconomic
Theory and Policy
2
Chapter 4:Aggregate Demand in the Open Economy
12 hour
4.1.International flows of Capital Goods
 N.GregoryManki
4.2. Saving and Investment in the Small Open Economy
w,
4.3.Exchange rates
Macroeconomics
4.4.The Mundell-Fleming model
4th edition
4.5.fiscal and monetary policies in an open economy with
2007,
 William H.
perfect capital mobility
Branson, 2006
Fixed exchange rate
Macroeconomic
Floating exchange rate
Theory and Policy
4.6 Limitations of the Mundell-Fleming model
Chapter 5: Models of Macroeconomic Growth
8 hour
5.1 Introduction: Modeling Economic Growth
5.2 Theories of Economic Growth
5.2.1
The Harrod-Domar Growth Model
5.2.2
The Neo-classical Growth model
5.2.3
Endogenous Growth Theory
 N.GregoryManki
w,
2007,
Macroeconomics
4th edition
William H. Branson,
2006 Macroeconomic
Theory and Policy
Chapter 6: Behavioral Foundations : theories of consumption
6 hour
6.1 the Keynesian consumption Function
6.1 the early empirical successes
6.2 secular Stagnation, Simon Kuznets and the consumption
puzzle
6.3 Irvin Fischer’s Model
6.4 Modigiani’s Life cycle Hypothesis model
6.5 Friedman’s permanent income Hypothesis
6.6 Hall’s Random Walk model
Rational expectations
Adaptive expectations
Naïve expectations
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
Course Policy
 Late coming is not allowed and no student is allowed to enter after class has started.
 Duplication of assignments is strictly forbidden; it entails serious penalty.
 Assignments are required to be submitted before or on the deadline.
 Cheating during exam sessions results in a minimum of “F “grade while cheating in quizzes
and tests is subjected to a zero mark. All cheating cases will be reported to the department for
further considerations.
 Students should switch off their cell phones while they are in class and must keep their cell
phones switched off during all kinds of exam sessions.
 Students must attend 80% of the class for the course. Failure to attend 80% of the class will
not allow the student to sit for the final exam.
 Missing a quiz without convincing evidences will earn the students a grade of zero marks in
that specific quiz
Reference:
Text Books
1. N. Gregory Mankiw, 2007, Macroeconomics 4th edition Worth Publishers USA
2. William H. Branson, 2006 Macroeconomic Theory and Policy
3. Dornbusch, R. and S. Fischer: Macroeconomics
Additional readings
4. Eduard Shapiro, 2007. Macroeconomic Analysis 5th edition New Delhi
5. Olivier Blanchard, 1997.Macroeconomics Prentice Hall Inc. New jersey USA
6. Frederick Mishkin, 1998. The Economics of Money, Banking and Financial Markets
5th edition USA.
7. Colander, 2001. Macreconomics 4th edition Newyork.
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