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Dr. A.M. Najjar
Kuwait University.
College of Administrative Sciences – Department of Economics.
Macroeconomics (Econ. 111) : Course Outline Spring 2015/2016
__________________________________________________________________________
1- OBJECTIVES
Principles of macroeconomics is an introductory course in economic theory. It is designed to introduce
undergraduate students to the fundamental concepts of macroeconomic analysis, i.e., the study of the
economic aggregates such as the aggregate demand and supply, gross domestic product (GDP), aggregate
consumption, saving, and investment…etc. By the end of the course, students should demonstrate an
understanding of the tools of macroeconomic analysis. Specifically, this course provides students with general
background and analytical tools pertaining to:
1. The definition of economics, economic problem, economic systems, opportunity cost and
production possibilities frontier and the circular flow of income.
2. Measuring domestic income using different approaches in an economy in both nominal and
real terms.
3. The notions of economic growth, business cycles, unemployment and inflation.
4. The aggregate expenditures model and equilibrium GDP under different assumptions.
5. Aggregate demand and supply and equilibrium real output and prices.
6. Fiscal and monetary policy actions and the rule of the central bank and the banking system.
7. International trade, exchange rates and the economics of developing countries
2 - COURSE OUTLINE:
Limits, Alternatives, and Choices

The economic perspective

Theories Principles and Models

Macroeconomics and microeconomics

Individuals' economizing problem

Production possibilities model

Unemployment, growth and the future
( pp 39 - 64 )
The Market System and The Circular Flow
 Economic Systems
 The Circular Flow Model
( pp 29 – 40)
(Perspectives covered: Legal, environmental and technological perspectives)
Measuring Domestic Output, National Income and the Price Level.

GDP

The expenditures approach

The Income approach

Nominal GDP versus real GDP

The consumer price index

Shortcomings of GDP
(pp 589 - 608)
(Perspectives covered: environmental, political, and ethical perspectives)
Introduction to Economic Growth and Instability

Economic growth

The business cycle
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

Unemployment
Inflation
(pp 609 - 650)
(Perspectives covered: Technological, environmental, social, legal and political perspectives)
Aggregate Expenditures: Basic Macroeconomic Relationships and The Multiplier, Net Exports, and
Government

Consumption and saving

Investment

Equilibrium GDP

Other features of equilibrium GDP

Changes in equilibrium GDP and the multiplier

International trade and equilibrium

Adding the public sector

Equilibrium versus full employment GDP
(pp 651 – 692 )
(Perspectives covered: Global, Political and environmental perspectives)
Aggregate Demand and Aggregate Supply

Aggregate Demand

Aggregate Supply

Equilibrium GDP and the price level

Changes in equilibrium
(pp 693 – 716 )
(Perspectives covered: environmental perspective)
Fiscal Policy





Fiscal policy and the AD-AS model
Built in stability
Evaluating fiscal policy
Problems, Criticism, and Complications
The Public Debt
(pp 717 – 738 )
(Perspectives covered: Political and environmental perspective)
Money Banking and Monetary Policy

The functions of money

The supply of money

Consolidated sheet of commercial banks

Tools of monetary policy

Effectiveness of monetary policy

Money Creation

(pp 739 – 773 )
(Perspectives covered: Legal, environmental, and political perspectives)
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3 - EVALUATION SYSTEM
1st mid term
2nd mid term
Wednesday
Wednesday
12.30-14.00
12.30-14.00
16/3/2016
27/4/2016
20
20
8 quizzes (6 to be selected)
10
Final (comprehensive) exam
Tuesday
17.00-19.00
10/5/2016
Total
50
_________
_
100
4 - Grading
< 95
94-90
89-87
86-84
83-80
79-77
76-73
72-70
69-65
64-60
60 <
A
A-
B+
B
B-
C+
C
C-
D+
D
F
5 - REFERENCES:
1. McConnell and Brue“ Economics “, 19th edition., Mc GRAW HILL 2010.
2. Your own handout during lectures.
6 - OFFICE HOURS
8.00 – 9.30 Monday, Wednesday.
or by a prior arrangement.
7- WEBSITE:
there is a web site for this class in my home page “http://www.cba.edu.kw/mouneer“; look at links for
useful information about the course:
8 - GENERAL INFORMATION

Absenteeism: university regulations governing absenteeism are applied to all students.
This involves a first warning after 3 hours, a second warning after additional 3 hours absence
and a failure notice for any absence beyond the six hours. It should be noted, however, that
students may lose marks as a result of absenteeism

Tardiness: students are expected to be in the lecture hall on time. Students showing signs
of tardiness shall be warned for the first time and subsequently barred from the lecture.

Make up policy: students who are unable to attend an exam due to illness or other
extenuating circumstances (appropriate documents are required to verify the indicated
circumstances) may request a make-up exam. (The least grade of other mid-term or %40 of
final exam)

Plagiarism and cheating are strictly prohibited by university policies as well as academic
ethics.
‫) أن مجرد تشغيل الهواتف النقالة يعد شروعا ً في الغش وتنطبق عليه المادة‬2009/6( ‫اعتبرت توصية لجنة العمداء رقم‬
‫) من الالئحة المتعلقة بالغش في االمتحانات التي تعتبر الطالب راسبا ً في جميع المقررات المسجل فيها في الفصل‬14(
‫الدراسي الذي ضبطت فيه حالة الغش‬
9 - WARNING:
MOBILE PHONES SHOULD ALWAYS BE CLOSED DURING LECTURES AND EXAMS .
