COURSE: INTRODUCTION TO MACROECONOMIC (ECO 121)
Instructor: Mahreen Mahmud
E-mail address: mahreenmahmud@hotmail.com
Syllabus:
1.
Introduction: Macroeconomic Issues. Introduction to Economic Growth and Instability. The
Economy: Private and Public Sectors; The Economy in the Global Economy
2.
National Income and Output: Measuring Domestic output; National Income; Building the aggregate
expenditure model; Aggregate Expenditures; The Multiplier; Net Exports and Government; National
income and price in the short run; National income in the long run. The basic theory of fiscal
stabilization
3.
Money, Banking and Monetary Policy: The role of money in macroeconomics; The balance of
payments and exchange rates; Monetary Policy; Macroeconomic Policy in an Open economy.
Core Reading List:
1.
2.
McConnell Brue. Economics Principles, Problems and Policies. 17th Edition.
Lipsey and Chrystal. An Introduction to Positive Economic. 8th Edition.
Course Objective:
The basic objective of this course is to thoroughly familiarize the students with a working knowledge of
Macro Economics. To build a thorough understanding of the different perceptions of Macroeconomic
policies that have changed radically in the past few years. We will be discussing both the old and relatively
recent views in this course.
Teaching Strategy:
The lecture will be divided into two parts; the first where text will be explained followed by a discussion
session, devoted to using and applying the knowledge gained in class through individual as well group
activities. The student is allowed 5 absents after which each absent will result in 1% being deducted from the
final attendance mark.
Assessment Criteria:
Final Exam: 40%
Midterm: 25%
Attendance and presentation: 10%
Quizzes (4): 20%
Assignments: 5%
Session #
Topics
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1&2
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3&4
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5
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6
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7&8
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9 & 10
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Chapter
How economic growth is measured and why it is
important.
About the business cycle and its primary phases.
How unemployment and inflation are measured.
About the types of unemployment and inflation and their
various economic impacts.
MB 7
Important facts about U.S. households and U.S.
businesses.
Why the corporate form of business organization
dominates sales and profits.
The problem that arises when corporate owners
(principals) and their managers (agents) have different
interests.
About the economic role of government in the economy.
The categories of government spending and the sources
of government revenues.
MB 4
Some key facts about U.S. international trade.
About comparative advantage, specialization, and
international trade.
How exchange rates are determined in currency markets.
How and why government sometimes interferes with
free international trade.
The role played by free-trade zones and the World Trade
Organization (WTO) in promoting international trade.
Quiz 1 and MB 5
How gross domestic product (GDP) is defined and
measured.
The relationships among GDP, net domestic product,
national income, personal income, and disposable
income.
The nature and function of a GDP price index.
The difference between nominal GDP and real GDP.
Some limitations of the GDP measure.
How changes in income affect consumption (and saving).
About factors other than income that can affect
consumption.
How changes in real interest rates affect investment.
About factors other than the real interest rate that can
affect investment.
Why changes in investment increase or decrease real
MB 5
MB 6
MB 8
GDP by a multiple amount.
11
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12
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13
14 & 15
16 & 17
18
19
20 & 21
22 & 23
24
25
Quiz -2 and MB 9
How economists combine consumption and investment
to depict an aggregate expenditures schedule for a private
closed economy.
The three characteristics of the equilibrium level of real
GDP in a private closed economy: aggregate
expenditures = output; saving = investment; and no
unplanned changes in inventories.
How changes in equilibrium real GDP can occur and
how those changes relate to the multiplier.
How economists integrate the international sector
(exports and imports) and the public sector (government
expenditures and taxes) into the aggregate expenditures
model.
About the nature and causes of "recessionary expenditure
gaps" and "inflationary expenditure gaps."
Mid Term
National income and price in the short run. Exogenous changes
in the price level
National income in the long run. Induced changes in factor
prices, the long run consequences of aggregated demand shocks
Quiz – 3 and L 36
The role of money in macroeconomics. The supply of money and
the demand for money, monetary forces and national income
The balance of payments and exchange rates. The balance of
payments, the market for foreign exchange
Monetary policy. The context of monetary policy, techniques of
monetary policy
Quiz – 4 and L 39
Macroeconomic policy and an open economy; macro policy in a
world with perfect mobility
26
27
28
MB: McConnell Brue
L: Lipsey and Crystal
Presentations
Final Exam
MB 9
L 31
L 32
L 36
L 37
L 38
L 39