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.
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.
- 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.
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.
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.
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.
|Final exam *||60%|