Course Outline
School:
Business
Department:
Accounting
Course Title:
Principles of Macroeconomics
Course Code:
ECON 206
Course Hours/Credits:
42
Prerequisites:
N/A
Co-requisites:
N/A
Eligible for Prior Learning,
Assessment and Recognition:
Yes
Originated by:
Aurelia Best, PhD
Revised by:
Shirley Lamarre
Revision Date:
Winter 2015
Current Semester:
Summer 2015
Approved by:
Chairperson/Dean
Students are expected to review and understand all areas of the course outline.
Retain this course outline for future transfer credit applications. A fee may be charged for
additional copies.
This course outline is available in alternative formats upon request.
ECON 206
CENTENNIAL COLLEGE
Principles of Macroeconomics
Course Description
This course covers the principles of Macroeconomics. This is the study of the aggregate level of
economic activity. This includes: inflation. unemployment, the business cycles, economic growth, the level
of national income, money and banking, international trade and finance, the balance of payments, fiscal
and monetary policies.
Program Outcomes
Successful completion of this and other courses in the program culminates in the achievement of the
Vocational Learning Outcomes (program outcomes) set by the Ministry of Training, Colleges and
Universities in the Program Standard. The VLOs express the learning a student must reliably demonstrate
before graduation. To ensure a meaningful learning experience and to better understand how this course
and program prepare graduates for success, students are encouraged to review the Program Standard by
visiting http://www.tcu.gov.on.ca/pepg/audiences/colleges/progstan/. For apprenticeship-based programs,
visit http://www.collegeoftrades.ca/training-standards.
Course Learning Outcomes
The student will reliably demonstrate the ability to:
1. Define the nature of the economic problem
2. Explain the differences between economic systems
3. Determine gross domestic product or GDP
4. Explain how unemployment and inflation figures are determined
5. Evaluate why the theories of John Maynard Keynes are relevant to current
economic thinking
6. Explain the economic factors that affect aggregate consumption and investment
in Canada.
7. Explain the nature and problems of implementing fiscal policy
8. Analyze the nature of government debt and deficits
9. Explain the nature of money
10. Explain the role of the Bank of Canada in determining monetary policy
11. Explain Canada’s balance of payments problems
12. Explain the factors that determine the international value of the Canadian dollar
13. Analyze current economic problems
Essential Employability Skills (EES)
The student will reliably demonstrate the ability to*:
1. Communicate clearly, concisely and correctly in the written, spoken, and visual form that fulfills the
purpose and meets the needs of the audience.
2. Respond to written, spoken, or visual messages in a manner that ensures effective
communication.
3. Execute mathematical operations accurately.
4. Apply a systematic approach to solve problems.
5. Use a variety of thinking skills to anticipate and solve problems.
7. Analyze, evaluate, and apply relevant information from a variety of sources.
11. Take responsibility for one's own actions, decisions, and consequences.
*There are 11 Essential Employability Skills outcomes as per the Ministry Program Standard. Of these 11 outcomes, the following will be
assessed in this course.
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
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ECON 206
CENTENNIAL COLLEGE
Principles of Macroeconomics
Global Citizenship and Equity (GC&E) Outcomes
N/A
Methods of Instruction
In Class Instruction;
Online lab assignments
Text and other Instructional/Learning Materials
Text Book(s):
Title: Exploring Macroeconomics, 4th Edition with Aplia
Author: Robert Sexton, Peter Fortura, and Colin Kovacs
Nelson Education
Online Resource(s):
Aplia Lab
Evaluation Scheme
➮
➮
➮
➮
➮
➮
➮
Assignments: In-Class Assignments
Assignments - online: Aplia Lab
Quiz: Quizzes (4)
Term paper: Term paper - individual or group
Test 1: Term test
Test 2: Term Test
Final Exam: Comprehensive final test
Evaluation Name
Assignments
Assignments - online
Quiz
Term paper
Test 1
Test 2
Final Exam
CLO(s)
EES
GCE
Weight/100
Outcome(s) Outcome(s)
1, 2, 3, 4,
10
5, 7, 11
3, 4, 5
10
1, 2, 3, 7, 9,
10
1, 2, 3, 4, 5,
6, 7, 8, 9, 10,
11, 12
1, 2, 3, 4, 5, 1, 2, 3, 4, 5
6, 7
13
1, 2, 5, 7,
11
1, 2, 3
1, 3, 4, 5
4, 5, 6
1, 2, 3, 4, 5, 1, 2, 3, 4, 5
6, 7, 8, 9, 10,
11, 12, 13
Total
10
10
15
15
30
100%
If students are unable to write a test they should immediately contact their professor or program Chair for
advice. In exceptional and well documented circumstances (e.g. unforeseen family problems, serious
illness, or death of a close family member), students may be able to write a make-up test.
All submitted work may be reviewed for authenticity and originality utilizing Turnitin®. Students who do not
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
3
ECON 206
CENTENNIAL COLLEGE
Principles of Macroeconomics
wish to have their work submitted to Turnitin® must, by the end of the second week of class,
communicate this in writing to the instructor and make mutually agreeable alternate arrangements.
When writing tests, students must be able to produce official College photo identification or they may be
refused the right to take the test or test results will be void.
Student Accommodation
It is College Policy to provide accommodation based on grounds defined in the Ontario Human Rights
Code. Accommodation may include modifications to standard practices. Students with disabilities who
require academic accommodations must register with the Centre for Students with Disabilities. Students
requiring accommodation based on other human rights grounds should talk with their professors as early
as possible. Please see the Student Accommodation Policy.
Use of Dictionaries
•
Dictionaries may be used in tests and examinations, or in portions of tests and examinations, as long
as they are non-electronic (not capable of storing information) and hard copy (reviewed by the
invigilator to ensure notes are not incorporated that would affect test or examination integrity).
Program or School Policies
N/A
Course Policies
N/A
College Policies
Students should familiarize themselves with all College Policies that cover academic matters and student
conduct.
All students and employees have the right to study and work in an environment that is free from
discrimination and harassment and promotes respect and equity. Centennial policies ensure all incidents
of harassment, discrimination, bullying and violence will be addressed and responded to accordingly.
Academic honesty is integral to the learning process and a necessary ingredient of academic integrity.
Academic dishonesty includes cheating, plagiarism, and impersonation. All of these occur when the work
of others is presented by a student as their own and/or without citing sources of information. Breaches of
academic honesty may result in a failing grade on the assignment/course, suspension or expulsion from
the college.
For more information on these and other policies, please visit www.centennialcollege.ca/aboutcentennial/college-overview/college-policies.
Students enrolled in a joint or collaborative program are subject to the partner institution's academic
policies.
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
4
ECON 206
CENTENNIAL COLLEGE
Principles of Macroeconomics
PLAR Process
This course is eligible for Prior Learning Assessment and Recognition (PLAR). PLAR is a process by
which course credit may be granted for past learning acquired through work or other life experiences. The
PLAR process involves completing an assessment (portfolio, test, assignment, etc.) that reliably
demonstrates achievement of the course learning outcomes. Contact the academic school to obtain
information on the PLAR process and the required assessment.
This course outline and its associated weekly topical(s) may not be reproduced, in whole or in
part, without the prior permission of Centennial College.
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
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ECON 206
CENTENNIAL COLLEGE
Principles of Macroeconomics
Topical Outline (subject to change):
Week
1
Topics
Readings/Materials
The Role and Method Review materials:
of Economics;
Scarcity, Trade-Offs Chapters 1 and 2
Weekly Learning Outcome(s)
Instructional Strategies
Evaluation
Name
Describe economics and the economic way of Lecture and Discussion Aplia
thinking
Application Problems
Assignment;
In-Class
Identify the components of an economic
Assignment 1
theory
Evaluation
Date
Define scarcity
Explain opportunity cost and the rationale for
choice
Define marginal thinking
Discuss why incentives matter
Discuss the advantages of specialization and
gains from trade and specialization
Explain how market prices coordinate
economic activity
Explain the relationship between variables
Illustrate the use of a graph to show the
relationship among variables
Discuss the three economic questions every
society faces (What is to be produced, how
are goods and services to be produced and
who will get the goods and services)
Discuss how the production possibilities curve
represents the potential total output
combinations of goods in a given time period
Illustrate and analyze the production
possibilities curve
Discuss market efficiency and how
opportunity cost is measured
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
6
ECON 206
Week
CENTENNIAL COLLEGE
Topics
Readings/Materials
Weekly Learning Outcome(s)
Principles of Macroeconomics
Instructional Strategies
Evaluation
Name
Evaluation
Date
Explain the law of increasing opportunity
costs
Apply the production possibilities curve to
show economic growth
Describe a market and the role of buyers and
sellers in a market
Explain how market prices coordinate
economic activity
Explain the circular flow model
2
Supply and Demand:
Bringing Supply and
Demand Together
Review materials:
Chapters 3 and 4
Explain the law of demand, the demand curve Lecture and discussion; Aplia
and changes in demand versus changes in
Application Problems
Assignment;
quantity demanded
In Class
Assignment 2
Explain the law of supply, the supply curve,
and changes in supply versus changes in the
quantity supplied
Explain shifts in the demand curve and the
supply curve
Discuss market equilibrium, equilibrium price
and equilibrium quantity
Analyse the impact on equilibrium price and
quantity when there is a shift in the demand
curve and/or supply curve
3
Introduction to the
Macroeconomy
Chapter 5
Explain price controls and distinguish
between price floors and price ceilings
Discuss the three major macroeconomic
goals
Distinguish between employment and
unemployment and their effects on the
economy
Lecture and discussion; Aplia
Case Study Assignment;
Newspaper article
Quiz 1;
Term paper
assignment
posting
Describe the different categories of
unemployment and the labour force
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
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ECON 206
Week
CENTENNIAL COLLEGE
Topics
Readings/Materials
Weekly Learning Outcome(s)
Principles of Macroeconomics
Instructional Strategies
Evaluation
Name
Evaluation
Date
participation rate
Discuss the natural rate of unemployment and
the impact of employment insurance and
technological change on unemployment
Explain the terms inflation and deflation in
terms of overall price level
Explain how inflation is measured using the
Consumer Price Index (CPI)
Describe the negative effects of inflation
Explain the correlation between inflation and
interest rates
4
Measuring Economic
Performance
Chapter 6
Discuss the four phases of a business cycle
(economic fluctuations)and the duration
Explain the importance of measuring
economic performance
Explain the concept of national income
accounting as it relates to measuring
economic performance
Lecture and discussion; Aplia
Application problems;
Assignment;
In-Class
Assignment 3;
Term Test 1
Discuss Gross Domestic Product (GDP)as in
index for measuring national economic
performance
Explain the expenditure approach to
measuring GDP and its computation
Describe the income approach to measuring
GDP
Differentiate between personal income and
disposable income
Explain the formula for converting nominal
GDP into real GDP (in constant dollars)
Discuss the deficiencies of GDP as a
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
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ECON 206
Week
CENTENNIAL COLLEGE
Topics
Readings/Materials
Weekly Learning Outcome(s)
Principles of Macroeconomics
Instructional Strategies
Evaluation
Name
Evaluation
Date
measure of economic welfare
5
Economic growth in
the global economy
Chapter 7
Explain the difference between short run
Lecture and discussion;
variations in economic activity(the business
Case study: Current
cycle) and long run economic growth and the newspaper article
rule of 70
Aplia
Assignment;
In Class
Assignment 4
Explain the factors that contribute to
economic growth
Describe the role of public policy in
increasing economic growth
6
Aggregate Demand
Chapters 8 and 9
and Aggregate supply
and Macroeconomic Chapter 9 Appendix:
equilibrium
The multiplier process
Explain the effects of population growth on
per capita economic growth and how it relates
to the the Malthusian prediction or theory
Explain the aggregate demand and the four
Lecture and discussion; Aplia
main components of aggregate demand
Application problems
Assignment;
Quiz 2
Discuss the investment and savings market
using the investment demand curve and
supply savings curve
Explain the variables which create the shifts
in the aggregate demand curve
Evaluate the effects of aggregate demand
shifters
Evaluate the behaviour of the aggregate
supply curve in the short run (the profit effect
and the misperception effect)
Evaluate the behaviour of aggregate supply
curve in the long run
Explain the factors of production that affect
the short run and the long run aggregate
supply curves
Describe how macroeconomic equilibrium is
determined
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
9
ECON 206
Week
CENTENNIAL COLLEGE
Topics
Readings/Materials
Weekly Learning Outcome(s)
Principles of Macroeconomics
Instructional Strategies
Evaluation
Name
Evaluation
Date
Explain and illustrate a recessionary gap and
an inflationary gap
Discuss how the economy may self-correct to
a recessionary or an inflationary gap
7
Fiscal Policy
Chapter 10
Explain the shifts in aggregate expenditure
and the application of the expenditure
multiplier process
Explain fiscal policy (expansionary and
contractionary) and how it impacts the
Government's budget
Lecture and discussion; Aplia
Application problems
Assignment;
In Class
Assignment 5
Describe the major categories of government
spending and sources of government
revenues (progressive, regressive and
proportional tax)
Discuss the multiplier effect and how the
changes in the marginal propensity to
consume (MPC) affects the multiplier process
Describe the impact of the multiplier effect on
the aggregate demand curve and on tax cuts
Discuss how the fiscal policy alleviates the
recessionary and inflationary gaps
Explain automatic stabilizers
Summarize possible obstacles to effective
fiscal policy
Describe how the government’s budget deficit
is financed
8
Money and the
Banking System
Chapter 11
Explain the problems associated with
government debt and budget deficits
Explain the four functions of money
Lecture and discussion; Aplia
Case study: Current
Assignment;
Explain how money and the supply of money newspaper article
In Class
are measured and the use of currency as
Assignment 6;
legal tender
Term Test 2
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
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ECON 206
Week
CENTENNIAL COLLEGE
Topics
Readings/Materials
Weekly Learning Outcome(s)
Principles of Macroeconomics
Instructional Strategies
Evaluation
Name
Evaluation
Date
Describe how banks create money
Discuss a bank's desired reserve ratio and
the uses of excess reserves
9
The Bank of Canada
Chapter 12
Explain how the money multiplier works and
the formula for potential money creation
Explain the role and responsibilities (currency, Lecture and discussion; Aplia
funds management, financial system, and
Case study: Current
Assignment;
monetary policy)of the Bank of Canada
newspaper article
Quiz 3
Describe the tools used by the Bank of
Canada in enacting monetary policy
10
Monetary Policy
Chapter 13
Explain the use of the equation of exchange
to understand the role of money in the
national economy
Explain and illustrate how the money market
works
Explain how the Bank of Canada influences
real gross domestic product in the short run
Lecture and discussion; Aplia
Case study: Current
Assignment;
newspaper article
In-class
assignment 7;
Due: Term
paper
Explain how the Bank of Canada influences
the real interest rate in the short run
Describe how expansionary monetary policy
works in a recessionary gap
Describe how a contractionary monetary
policy works in an inflationary gap
Discuss problems in implementing monetary
and fiscal policy
11
International Trade
Chapter 14
Explain the Phillips curve (unemployment and
inflation) and how it relates to the aggregate
supply and demand model
Identify Canada’s merchandise trade
Lecture and discussion; Aplia
Application problems
assignment;
Describe the various international trade
Quiz 4
agreements and their impact on Canada's
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
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ECON 206
Week
CENTENNIAL COLLEGE
Topics
Readings/Materials
Weekly Learning Outcome(s)
Principles of Macroeconomics
Instructional Strategies
Evaluation
Name
Evaluation
Date
exports and imports of goods and services
Explain the principle of comparative
advantage and gains from trade
Describe supply and demand in international
trade (consumer surplus and producer
surplus)
12
International Finance
Chapter 15
Discuss tariffs, import quotas, and subsidies
and their impact on the domestic economy
Explain the balance of payments its
components (the current account for import
and export of goods, the capital account
transactions and the use of statistical
discrepancy)
Lecture and discussion; Aplia
Case study: Current
Assignment
newspaper article
Explain how exchange rates are determined
Discuss the determinants in the foreign
exchange market (equilibrium changes)
13
Review Class
14
Final Exam
Discuss the advantages and disadvantages of
the system of flexible exchange rates
All chapters covered in All outcomes in the course
Lecture and discussion
the course
Comprehensive: All
All weekly outcomes covered in the course
N/A
chapters covered in the
course
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
N/A
In-person
written exam Comprehensiv
e: 30%
weighting
12