ECON 1951

Principles of Macroeconomics

3.0 Credits

Description

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.

Delivery Methods

Web-based.

Prerequisites

Completion of one of Principles of Math 12, Foundations of Math 12, or Pre-calculus Math 12 highly recommended.

B or better in Foundations of Math 11 or Pre-calculus Math 11 (BC graduates of 2013 onward); or C+ minimum in Principles of Math 11 or Applications of Math 12 or equivalent (BC graduates prior to 2013); or MATH 0523 or equivalent is recommended.

Objectives

  • 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 Outline

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

Course Duration

30 weeks.

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.

Open Learning Faculty Member

An Open Learning Faculty Member is available to assist students. Primary communication is through the Learning Environment’s “Mail” tool or by phone. Students will receive the necessary contact information at the start of the course.

Assessments

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