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 due to COVID-19 safety guidelines all in-person exams have been suspended. As such, all final exams are currently being delivered through ProctorU, which has an approximate fee of $35 involved. There will be more information in your course shell, on how to apply, if your course has a final exam.

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

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.

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