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ECON 1951: Principles of Macroeconomics

Students examine how the economy behaves at the aggregate level and how national income is measured and determined. Topics include an overview of macroeconomics; measuring gross domestic product, inflation and unemployment; demand including the multiplier process; supply, business cycles, long-term growth; money, banking and monetary policy; inflation; interest rates; stagflation; deficits and fiscal policy; exchange rates and balance of payments; exchange rate policy; purchasing power and interest rate parity.

Learning outcomes

  • Understand the forces determining macroeconomic variables such as inflation, unemployment, interest rates, and the exchange rate;
  • Formulate and assess macroeconomic policy suggestions;
  • Define macroeconomic terminology, such as the multiplier, monetarism, the natural level of unemployment, and fiscal policy;
  • Interpret and evaluate media reports on the macroeconomy.

Course topics

Module 1: Background and Overview

Module 2: Macroeconomic Basics

  • Unit 1: Measurement

  • Unit 2: The Aggregate Demand Side

  • Unit 3: The Aggregate Supply Side

Module 3: The Monetary Sector

  • Unit 1: Money and Banking

  • Unit 2: Inflation

  • Unit 3: The Interest Rate

Module 4: Stagflation and Deficits

  • Unit 1: Stagflation

  • Unit 2: Deficits

Module 5: The International Sector

  • Unit 1: The Exchange Rate and the Balance of Payments

  • Unit 2: Policy in an Open Economy

  • Unit 3: Purchasing Power Parity and Interest Rate Parity

Required text and materials

Kennedy, P. E., & Prag, J. (2017). Macroeconomic essentials: Understanding economics in the news. (4th ed.). Cambridge, MA: MIT Press.
ISBN: 978-0-262-53334-8

Additional requirements

Computer with Internet is required.


Please be aware that should your course have a final exam, you are responsible for the fee to the online proctoring service, ProctorU, or to the in-person approved Testing Centre. Please contact with any questions about this.

To successfully complete this course, students must achieve a passing grade of 50% or higher on the overall course, and 50% or higher on the final mandatory examination.

Assignment 1 10%
Assignment 2 10%
Assignment 3 10%
Assignment 4 10%
Final exam * 60%
Total 100%

* Mandatory

Open Learning Faculty Member Information

An Open Learning Faculty Member is available to assist students. Students will receive the necessary contact information at the start of the course.

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