ECONOMICS DEPARTMENT

COURSE SYLLABUS

College: School of Economics

Department: Economics
Course Code: Introduction to Macroeconomics (ECONTWO)
Pre-requisite: Introductory Microeconomics (ECONONE)
Class Days and Time:
Room:
Instructor:

COURSE DESCRIPTION:

Introduction to Macroeconomics is a basic course for students under the College of

Business as well as the School of Economics. This course introduces students to the
basic tools in macroeconomics. Upon learning the basics, the students will be
exposed to deeper discussions of issues which include but not limited to
unemployment and inflation, government budget deficits, exchange rates, the open
economy and other current policy concerns.

School of Economics Expected Learning Outcomes (LOs):

Lasallian Graduate Attributes On the completion of the course, the student is
(ELGAs) expected to be able to do the following

Intellectual Inquisitiveness Identify and analyze the different issues

involving unemployment and inflation,
government budget deficits, exchange rates and
Technical Proficiency other policy concerns and provide the necessary
Critical Thinking macroeconomic policy recommendations to
achieve the macroeconomic goals of a country.
Agent of Positive Social Change

Learning Outcome Required Output Due Date

Identify the different issues
involving unemployment
and inflation, investment,
government budget deficits,
exchange rates and other
policy concerns and provide
the necessary policy tools to
achieve the macroeconomic
goals of a country.
Written group project
identifying a key Written report is due on the
macroeconomic issue of a 12th week of the term.
topic and providing sound
policy tools necessary to
achieve the macroeconomic
goals of the country.

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 RUBRIC FOR ASSESSMENT

Rubric for Written Group Project

Learning Excellent Very Satisfactory Satisfactory Needs

Outcome/Criteria (90-100) (80-89) (70-79) Improvement
(0-69)
Identification of Clearly recognizes the Clearly recognizes Rudimentary Does not clearly
key issues basics of the issue and the basics of the problem identify the
subsidiary, embedded issue and includes identification. problem.
or implicit aspects of some of the Identifies main Identifies an
the problem. Clearly subsidiary issues. problem but omits inappropriate
addresses the relevant issues. Does problem or
relationship among not identify the represents the
subsidiary issues. relationship between issue
Identifies not only the different aspects or inaccurately.
basics of the issue but issues.
also recognizes subtle
nuances of the issue.
Applies Provides complete and Provides several Provides data(s) but Provides
appropriate appropriate data(s) to appropriate data(s) does not explain inappropriate
supporting data(s) support the issue at to support the issue how it supports the data(s) to support
hand at hand issue at hand the issue at hand
Analysis of Issues Detailed and accurate Detailed and Provides broad Provides
analysis of issues and accurate analysis of analysis of issues inadequate
how it impacts on the issues without discussion analysis of issues
economy on its impact on the
economy
Provides Provides a clear cut Provides Provides limited Provides
solutions to the solution(s) to the issues solution(s) to the solution(s) to the inadequate
issues at hand and clearly issues at hand and issues at hand and solution(s) to the
explains why such explains why such explains why such issues at hand
policy is appropriate in policy is policy is appropriate
solving the problem appropriate in in solving the
solving the problem problem
Evaluation Examines the impact of Notices the Identifies some Fails to draw
other alternative difference of other conclusions. Sees conclusions. Sees
policies and clearly alternative policies. some arguments. no arguments.
explains the effect on Formulates Identifies some Overlooks
solving the problem conclusions. differences. differences.
Examines conclusions. Paraphrases data. Repeats data.
Omits research.
Presentation Discusses issues Argues clearly. Misconstructs Omits argument.
thoroughly. Provides Identifies issues. arguments. Misrepresents
clear cut solution(s). Attributes sources. Generalizes issues. issues. Excludes
Shows intellectual Suggests solutions. Cites sources. data. Draws
honesty. Justifies Incorporates Presents broad faulty
decisions. information. solutions.Overlooks conclusions.
some information. Does not cite
sources.

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OTHER REQUIREMENTS:

1. News Reporting. At the start of each meeting, students will be asked to

discuss an article and relate to the lecture.
2. Home reading. Students are expected to review assigned readings before they
are tackled in class.
3. Class attendance and active participation in class discussions. Lectures
expound on the assigned reading materials. Treatment of certain materials,
however, may be different from the text and references.
4. Written and oral reports submitted and/or presented in class including news
reporting.
5. Written examinations, which include the long exams clearly marked in the
preceding table and a final examination scheduled by the College.

COURSE ASSESSMENT/EVALUATION:

(3) Long Exams 50%

Final Exam 30%
Written Group Project 10%
Class Participation and Recitation 10%
Total 100%

GRADING SCALE:

97-100 4.0
93-96 3.5
89-92 3.0
85-88 2.5
80-84 2.0
75-79 1.5
70-74 1.0
Below 70 0.0

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LEARNING PLAN:

Learning Outcome Topic Week Learning

No. Activities
Identify the different PART I: INTRODUCTION: AN
issues involving OVERVIEW OF MACROECONOMICS Lecture
unemployment and Recitation
inflation, investment, 1. Goals and Instruments of 1 Discussion
government budget Macroeconomic Policy
deficits, exchange 2. An Overview of the Aggregate
rates and other Demand and Aggregate Supply
policy concerns and Framework 2
provide the 3. Schools of Thought in
necessary policy Macroeconomics
tools to achieve the 3.1 Classical
macroeconomic 3.2 Keynesian
goals of a country. 3.3 Supply Side
3.4 Rational Expectations

Identify the different PART II: NATIONAL INCOME

issues involving ACCOUNTS
government budget Lecture
deficits and other 1. The Circular Flow Model 3 Recitation
policy concerns and 2. Approaches to Measuring National Discussion
provide the Income Individual
necessary policy 3. Government Budget Accounts 4 Exercises
tools to achieve the 4. Merchandise Trade Accounts
macroeconomic
goals of a country.

First Long Examination 4

Identify the different PART III: NATIONAL INCOME
issues involving DETERMINATION AND THE SIMPLE
government budget THEORY OF CONSUMPTION Lecture
deficits, exchange Recitation
rates and other 1. The Consumption and Savings 5 Discussion
policy concerns and Functions
provide the 2. Simple Income Determination for a
necessary policy Two-Sector, Closed Economy Setting
tools to achieve the 3. The Multiplier
macroeconomic 4. Income Determination and the Role 6
goals of a country. of Fiscal Policy in a Three Sector
Closed Economy Setting
5. Application: The Economics of
Budget Deficits: The Role of Fiscal

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 Discipline, Tax Reform, Privatization
and Deregulation

Identify the different PART IV: THEORY OF

issues involving INVESTMENT Lecture
investment and other 7 Recitation
policy concerns and 1. Determinants of Investment Discussion
provide the 2. The Marginal Efficiency of Capital
necessary policy
tools to achieve the
macroeconomic
goals of a country.

Second Long Examination 7

Identify the different PART V: INTRODUCTION TO THE
issues involving ROLE OF MONEY IN THE
unemployment and ECONOMY
inflation, exchange
rates and other 1. The Functions of Money 8 Lecture
policy concerns and 2. Theory of the Demand for Money Recitation
provide the 3. Empirical Evidence on Money Discussion
necessary policy Demand
tools to achieve the 4. The Quantity Theory of Money
macroeconomic 5. The Components of the Money
goals of a country. Stock/ Supply 9
6. Monetary Policy
7. Application: The Role of Prudent
Monetary Policy and the need for
Financial Liberalization

Identify the different PART VI: THE IS-LM FRAMEWORK

issues involving
policy concerns and 1. The Product Market and the IS Curve 10 Lecture
provide the 2. The Assets Market and the LM Curve Recitation
necessary policy 3. Equilibrium in the Product and Discussion
tools to achieve the Assets Market Individual
macroeconomic 4. Changes in Equilibrium Income and Exercises
goals of a country. Interest Rates
5. Fiscal Policy and Crowding Out
6. Policy Mix

Identify the different PART VII: WAGES, PRICES AND

issues involving EMPLOYMENT: STABILIZING THE
unemployment and MACROECONOMY
inflation and provide Lecture
the necessary policy 1. Wage-Unemployment Relationship 11 Recitation

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tools to achieve the 2. Supply Shocks Discussion
macroeconomic
goals of a country.

Identify the different PART VIII: OPEN ECONOMY

issues involving MACROECONOMICS Lecture
unemployment and Recitation
inflation, 1. The Balance of Payments Accounts 12 Discussion
government budget 2. The Balance of Trade, Foreign
deficits, exchange Exchange and BOP Adjustment
rates and other 3. Policy Dilemmas: Internal and
policy concerns and External Balance
provide the 4. IS-LM BP Analysis 13
necessary policy 5. Application: The Economics of
tools to achieve the Trade Reform
macroeconomic
goals of a country.

Third Long Examination 13

Final Examination 14

MAIN TEXTBOOK:

Case, K., Fair, R. and Oster, S. (2011). Principles of Economics (10th edition). Singapore:
Prentice Hall, Inc.

REFERENCES:

Baumol, W. and Blinder, A. (2011). Macroeconomics: Principles and Policy

(12th edition, paperback). Dryden Publishing.
Dornbusch, R., Fischer, S. and Startz, R. (2010). Macroeconomics (11th International
edition, paperback).
Samuelson, P.A. and Nordhaus, W.D. (2009). Economics (19th edition, paperback).
Singapore: McGraw-Hill Companies, Inc..
Tullao, T. (2009). Elements of Economics. Quezon City: Phoenix Publishing House.

SUPPLEMENTARY MATERIALS, EXERCISES AND PROBLEM SETS:

Exercises on real national income concepts:

http://hrsbstaff.ednet.ns.ca/mcallip/GNP/real_gnp_3problem.htm
http://hrsbstaff.ednet.ns.ca/mcallip/GNP/real_gnp_4problem.htm

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Exercises on per capita income:
http://hrsbstaff.ednet.ns.ca/mcallip/GNP/per_capita_gnp.htm
Aggregate demand supply problem set:
http://dl.ccc.cccd.edu/classes/internet/economics180/mod9_aggregate_ds.pdf

Aggregate demand, aggregate supply and modern macroeconomics concepts:

http://www.hencc.kctcs.net/faculty/thurmanm/documents/Chapter25-26.doc

Macroeconomic equilibrium review of concepts:

http://www.greatneck.k12.ny.us/GNPS/SHS/dept/soc/mooney/ap_macro/documents/Ch9
AggregateDemandandSupply.pdf

Summary, exercises and critique of Keynesian economics

http://ec.boisestate.edu/adalton/ArchivedMacroSpring2006/13KeynesSummary06.ppt

Money supply and money demand review of concepts

http://www.google.com.ph/search?hl=en&q=exercises+in+demand+and+supply+for+mo
ney&btnG=Search&meta=

Exercises on goods market equilibrium:

http://www.nber.org/~rosenbla/econ110-04/assignments/ps10s.pdf

Review of inflation concepts:

http://www.scholarnet.co.nz/demo/eol/shell.php?content=content03.php

Monetary Theory: IS-LM and monetary policy:

http://userwww.sfsu.edu/~pgking/690pdfs/islm.pdf

IS-LM review of concepts:

http://www.apwt27.dsl.pipex.com/Work/mac2.doc

Basic IS-LM analysis:

http://econmodel.com/classic/exercises/islm.pdf

IS-LM sample quiz:

http://ingrimayne.com/econ/optional/ISLM/quiz14a.htm

Discussion on recording transactions in the balance of payments:

http://internationalecon.com/Finance/Fch5/F5-6.php

Exercises on the balance of payments:

http://miha.ef.uni-lj.si/_dokumenti3plus2/191241/Ex1.doc

Exercises on exchange rate determination:

http://hrsbstaff.ednet.ns.ca/mcallip/Exchange%20Rates/exchange_rates_sheet_1.htm

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Exercises on exchange rate determination:
http://hrsbstaff.ednet.ns.ca/mcallip/Exchange%20Rates/exchange_rates_sheet2.htm

CLASSROOM POLICIES:

1. Lectures and class discussions are conducted every meeting. They include
mixtures of presentations of materials and exercises.
2. Recitations are required and would be graded.
3. Homework is an essential tool for learning class materials. Problems help
reinforce the basic as well as challenge students to provide insights into the
problems. Problem sets can be done in groups but students must submit
individual responses to the assigned materials.
4. Written examinations are based on the lecture materials as well as those that
are presented in the required text.
5. Written case reports are due on the 12th week of the term.

Writing Process: Each group will be given a topic wherein they have to identify
and discuss issues (problems) related to the topic. The group is then expected to
propose solutions to the issues at hand using the different policy tools to achieve
a countrys macroeconomic goals.

There is no minimum number of pages required for the group project. Members
of the group are expected to cooperate to ensure submission of a quality project.
The deadline for the written group project is on the second meeting of the 12th
week of the term.