Intro To Macroeconomics Theory And Practice--syllabus 2v1x1r

COURSE SYLLABUS Prepared by:

Reviewed by:

Approved by:

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COURSE NUMBER

: BE101B

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COURSE TITLE

: INTRODUCTION TO MACROECONOMICS: THEORY AND PRACTICE

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CREDIT UNIT

: 3

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PREREQUISITE

: INTRODUCTION TO MICROECONOMICS: THEORY AND POLICY W/ LRT

COURSE DESCRIPTION

: This subject emphasizes on the broader concept of economics which focuses on the economic activity of a nation. Important issues that affect the economy of the country will be tackled such as unemployment, inflation, and the monetary and fiscal policy.

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COURSE OUTCOMES

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VALUES INTEGRATION

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COURSE OUTLINE

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LECTURE: 3

LAB: 0

Present theory-based analysis and relevant understanding of how the economics of a nation works. Evaluate the source of wealth of a nation and practice proper allocation. Recommend effective and sustainable economic decision through application of concepts and the various policies in macroeconomics.

After taking this course subject, the student should:  Develop inquisitiveness and self-awareness of what decisions to take upon doing economic transactions.  Enhance nationalism and ethical reasoning.  Practice rationality and analytic skills in decision making.

Learning Outcomes/ Competency

Course Topics

Teaching Strategy/ Learning Activities

Assessment Tasks

PRELIM Week 1 (3 hours) I. Introduction to Economics A. The Scope and Method of Economics. B. The Economic Problem: Scarcity and Choice. C. Demand, Supply, and Market Equilibrium. D. Demand and Supply Applications. E. 10 Principles of Economics

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Recall the 10 principles of economics Define economics and distinguish between microeconomics and macroeconomics. Explain the five core ideas that define the economic way of thinking.  Appreciate the worth of studying Economics and the  works of economists as social scientists. Apply the different methods – theories, policy and models in creating effective and sustainable economic decisions.

Lecture/ Classroom discussion Problem Analysis

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Oral Recitation Quiz

Week 2 (3 hours)

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II.Concepts and Problems in Macroeconomics. A. Introduction to Macroeconomics. 1. Macroeconomic Concerns. 2. The Components of the Macroeconomics. 3. A Brief History of Macroeconomics

Week 3 (3 hours) B. Unemployment, Inflation, and Long-Run Growth. 1. Unemployment 2. Inflation 3. Long-Run Growth

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Explain the macroeconomic concerns Understand the components of the macroeconomic. Appreciate the role of the government in the macroeconomy. Discuss the brief history of Macroeconomics. Assess the business cycle Identify the different types of unemployment and inflation Define unemployment, inflation and economic growth. Explain the causes of unemployment, inflation and recession. Identify and apply macroeconomic policies to alleviate unemployment, inflation and recession.

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Lecture/ Classroom discussion Group dynamic Problem Analysis

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Oral Recitation Seatwork Group work

Lecture/ Classroom discussion Group dynamic Problem Analysis

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Oral Recitation Seatwork Quiz

Lecture/ Classroom discussion Group dynamic Problem Analysis

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Oral Recitation Quiz Boardwork

Lecture/ Classroom discussion Group dynamic Library work

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Oral Recitation Seatwork Group Activity

MIDTERM Week 4 (3 hours) III.

The Core of Macroeconomic Theory. A. Aggregate Expenditure and Equilibrium Output. 1. Aggregate Demand and Supply a. Aggregate Demand b. Aggregate Supply c. Market Equilibrium

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Week 5 (3 hours) B. Measuring National Output and National Income. 1. Gross Domestic Product. 2. Calculating GDP. 3. Nominal versus Real GDP. 4. Limitations of the GDP Concept.

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Distinguish Aggregate demand and Aggregate supply Explain Aggregate demand and supply determinants Differentiate Aggregate Demand and demand Differentiate Aggregate supply and supply Use law of supply and demand to illustrate the Aggregate demand Supply.

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Define and calculate GDP.  Distinguish GDP, GNP, NDP and NNP.  Realize the significance of  measuring the performance of an economy. PREFINAL

Week 6 (3 hours)

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C. Money, Interest and Income 1. Equilibrium in Both the Goods and Money Markets: The IS-LM Model 2. Policy Effects in the Goods and Money Markets. 3. IS-LM vs Ad-AS.

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Understand planned investment and its determinants. Explain the effects of expansionary, contractionary and the Macroeconomic policy  mix on the goods and money markets.  Determine the causes of shift in aggregate demand. Explain how price are determined in both the goods and money markets

Lecture/ Classroom discussion Problem Analysis

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Oral Recitation Seatwork Assignment

Lecture/ Classroom discussion Group dynamic Problem Analysis

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Oral Recitation Seatwork Quiz

Lecture/ Classroom discussion Group dynamic

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Oral Recitation Seatwork Quiz

Lecture/ Classroom discussion Group dynamic Problem Analysis

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Oral Recitation Seatwork

Lecture/ Classroom discussion Problem Analysis

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Oral Recitation Quiz

Week 7 (3 hours) 4. 5. 6.

IS curve shifts Crowding-out effect Fiscal policy: Expansionary and contractionary policy

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Financial markets Shifts of financial markets (LM curve) Monetary Policy: Expansionary and contractionary policy

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Define the concept of crowding-out effect Determine the effects of fiscal policy changes relative to the IS curve Explain and understand the goods market Identify the determinants of shifts of the IS curve Explain the concept of LM curve and financial market Determine the effects of monetary policy changes in money stock Explain the effects of monetary expansion and contraction Define the concept of liquidity trap FINAL

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Week 9 (3 hours) IV.

The World Economy A. The Economics of Depression, Hyperinflation and Deficits 1. Trade Surpluses and Deficits. 2. Comparative Advantage. 3. Trade Barriers: Tariffs, Export Subsidies, and Quotas.

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Distinguish absolute advantage versus comparative advantage. Explain the of trade and exchange rates. Discuss the trade barriers.

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Week 10 (3 hours) 4. The Balance of Payments 5. Equilibrium Output (Income) in an Open Economy. 6. The Open Economy with Flexible Exchange Rate 7. Foreign exchange

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Understand the current and the capital in the balance of payments. Determine the international  sector and planned aggregate expenditure  Explain the trade and price effect on imports and exports. Explain foreign exchange market and its effect on the

Week 11 (3 hours)

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Aggregate Demand and Supply 9. Keynesian Economics 10. Classical Economics

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Describe the life in the developing nations. Discuss the sources and strategies of economic development. Explain the velocity of money and the quantity theory of money Evaluate Supply-Side Economics.

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Lecture/ Classroom discussion Group dynamic Problem Analysis

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Oral Recitation Quiz Assignment

Lecture/ Classroom discussion Group dynamic Problem Analysis

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Oral Recitation Quiz Group work

Week 12 (3 hours) 11. Great Depression 12. Hyperinflation and Deficits

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TEXTBOOKS

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REFERENCE BOOKS :

ONLINE REFERENCES

Define budget deficits, hyperinflation and depression Assess how great depression occur Identify the policies used by the government and applying Keynesian and classical theories Assess the process on how to break-away from depression Identify the causes of hyperinflation and predict what could happen to the Philippine economy if depression occurs

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Baumol, William and Alan Blinder, Macroeconomics: Principles and Policy, 12 th Ed., 2012 Leuterio, Mercedes M. and Consuelo B. Estepa, Banking Theory and Practice(Revised Edition), 2004 Lieberman, Marc and Robert Hall, Principles and Application of Macroeconomics, 6 th Ed., 2013 Slavin, Stephen L. Macroeconomics, 9th Ed., 2010

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