EC1210 - Macroeconomics (Intersession 2014)

Paul Tilley

COURSE DESCRIPTION: This course is designed to introduce you to the basic principles of macroeconomics – the study of the economy; including the physical and monetary aspects of international trade; money, banking, and monetary policy; the gross national product, national expenditure components, business cycles, and fiscal policy.

PREREQUISITES: None

CREDIT VALUE: Four (4)

TEXTBOOK RESOURCE: Sayre, J.E. and Morris, A.J. (2012). Principles of Macroeconomics (7th ed). Toronto: McGraw- Hill Ryerson.

MAJOR TOPICS:

1.0 National Output and Fiscal Policy
2.0 Money, Banking, and Monetary Policy
3.0 International Trade


COURSE OUTCOMES:

Upon successful completion of this course you will be able to:

1. Calculate the national output of an economy
2. Analyze the processes followed in money and banking and how they are affected by monetary policy
3. Use macroeconomic principles to describe economic challenges presented by international trade
4. Analyze the impact of various macroeconomic issues on an economy and how government policy can affect change
5. Explain how a government’s fiscal and monetary policy affects the value of a nation’s currency


COURSE EVALUATION:

Contribution through Discussion Posts 10%
Assignments (3 @ 5%) 15%
Midterm Exam 30%
Final Exam 45%

Detail

Contribution through Discussion Posts 10%

Throughout the intersession term, on an almost weekly basis, I will be posting relevant news articles with a question on that article from some current event that is taking place somewhere in the world of macroeconomics. I will post five (5) and these will appear in the NEWS section of the course. Your job will be to read the article, research the topic online and incorporate what you are learning in the course to answering the posed question and interpreting what you have read. All posts are due one (1) week after the discussion posting is posted.

Assignments (3 @ 5%) 15%

There are three (3) assignments scheduled for the course. Note the due dates for the assignments. The "Answer key" will be posted a couple of days after the due date. Late assignments will not be accepted once the answer key has been posted.

Assignment
Problems (7th edition)
Due Date
Value
Assignment 1
1. Chapter 1-36A p38
2. Chapter 1-47A p41
3. Chapter 3-36A p116
4. Chapter 3-37A p117
5. Chapter 3-41A p118
Friday, May 16, 2014
/5
Assignment 2
1. Chapter 4-36A p148
2. Chapter 4-46A p150
3. Chapter 4-47A p150
4. Chapter 5-36A p187
5. Chapter 5-42A p188
6. Chapter 6-36A p229
7. Chapter 6-42A p231
Friday, May 30, 2014
/5
Assignment 3
1. Chapter 7-36A p260
2. Chapter 8-36A p286
3. Chapter 8-37A p287
4. Chapter 9-36A p323
5. Chapter 10-36A p357
6. Chapter 11-36A p391
Wednesday, June 11, 2014
__/5


Midterm Exam 30%

The Midterm exam will be an ONLINE exam consisting of 50 Multiple Choice questions covering scheduled material up to the midterm.

Final Exam 45%

The Final exam will be a comprehensive PAPER/Invigilated exam that will cover all the material in the course. The exam will consist of two parts, Part 1(40%) will consist of 40 Multiple Choice questions covering post-midterm material. Part 2 (60%) of the exam will consist of six (6) questions/problems from topics covered in the course. At least one week prior to the exam I will send out a review sheet of key objectives covered by the final exam.

Preface
Topic
Audio/Video/Web Links
Reading Links(Text 7th ed)

Course Overview Video
http://youtu.be/J1t_LL9X9Bk

  1. 1. What is Economics
What is Economics:
http://www.youtube.com/watch?v=h-Ja3PBZSpg&list=PL82B772CE0EF7C618&feature=share




Text: Read Chapters 1 & 2
  1. 2. Scarcity
Scarcity http://www.youtube.com/watch?v=yoVc_S_gd_0&list=PLF2A3693D8481F442&feature=share
  1. 3. Forced Choice from limited resources
Resources: http://www.youtube.com/watch?v=0PgP0dXAGAE&feature=share&list=PLF2A3693D8481F442&index=1


  1. 4. Opportunity Cost
Opportunity Costs:
http://www.youtube.com/watch?v=PSU-_n81QT0&list=PLF2A3693D8481F442&feature=share&index=7
  1. 5. Factors of Production
Factors of Production:
http://youtu.be/hG9PQHD5ROA


  1. 6. Factor Payments

  1. 7. Macroeconomics
Macro vs. Micro Economics http://www.youtube.com/watch?v=w8tUIq7Blsg&list=PLF2A3693D8481F442&feature=share&index=2


  1. 8. Microeconomics
http://www.youtube.com/watch?v=ukQ1ZVCp72o&feature=share&list=PL82B772CE0EF7C618&index=2


  1. 9. Supply, Demand and Price
Overview of Supply and Demand:
https://www.youtube.com/watch?v=_eayXd8ZFH8




Demand:
http://www.youtube.com/watch?v=uXlZIn6W7Ew&list=PLF2A3693D8481F442&feature=share&index=10


Supply:
http://www.youtube.com/watch?v=KccMcf_xOQU&list=PLF2A3693D8481F442&feature=share&index=12


Interaction of Supply and Demand:
http://www.youtube.com/watch?v=W5nHpAn6FvQ&list=PLF2A3693D8481F442&feature=share&index=13




  1. 10. Production Possibilities
http://www.youtube.com/watch?v=gbv6TVeCjyg&list=PL82B772CE0EF7C618&feature=share&index=5


Part 1 of 3 - National Output and Fiscal Policy
Topic
Audio/Video/Web Links
Reading Links
  1. 1. Circular Flow in the Economy
See: http://economics.about.com/od/economics-basics/ss/The-Circular-Flow-Model.htm
Also See: http://www.youtube.com/watch?v=V5_IOkWqlfY&feature=share&list=PL82B772CE0EF7C618&index=4
Text: Read Chapter 3 – Measuring the Economy 1 – GDP and Growth
  1. 2. National Income
National Income: https://www.google.ca/publicdata/explore?ds=d5bncppjof8f9_&met_y=ny_gnp_mktp_pp_cd&hl=en&dl=en&idim=country:CAN:AUS:MEX
  1. 3. Economic Equilibrium

Text: Read Chapter 4 –
Measuring the Economy 2 – Unemployment
  1. 4. National Income Accounting
  2. 5. Increases
  3. 6. Decreases
  4. 7. Accounting measures


  1. 8. Gross Domestic Product
GDP: http://www.youtube.com/watch?v=yUiU_xRPwMc&feature=share&list=PLF2A3693D8481F442&index=19

https://www.youtube.com/watch?v=zrIDk0fwmd8&index=13&list=PL82B772CE0EF7C618

  1. 9. Gross National Product


  1. 10. Challenges if GDP to measure National Income


  1. 11. Measuring Economic Growth
Measuring economic growth: http://www.youtube.com/watch?v=HfCEHYukiPw&list=PLF2A3693D8481F442&feature=share&index=21
Text: Read Chapter 5 – Aggregate demand
  1. 12. Nominal GDP
http://www.youtube.com/watch?v=M2t3Cfrznu0&feature=share&list=PL82B772CE0EF7C618&index=14

  1. 13. Real GDP
Real GDP: http://www.youtube.com/watch?v=29S7FzI7s7g&list=PLF2A3693D8481F442&feature=share&index=20

  1. 14. Calculating GDP
https://www.youtube.com/watch?v=oVxtZH-E49Y&list=PL82B772CE0EF7C618&index=14

http://www.youtube.com/watch?v=LzriizHyYhs&feature=share&list=PL82B772CE0EF7C618&index=13

  1. 15. Consumer Price Index
Price Changes in the Economy: http://www.youtube.com/watch?v=SmOMp8gycMA&list=PLF2A3693D8481F442&feature=share&index=15

  1. 16. Real Income
Real Income: http://www.youtube.com/watch?v=cwBpq5T0ks0&list=PLF2A3693D8481F442&feature=share&index=16
Text: Read Chapter 6 – Aggregate Expenditure
  1. 17. GDP Deflator Index
http://www.youtube.com/watch?v=lql4Qih2UfA&feature=share&list=PL82B772CE0EF7C618&index=15

  1. 18. The Business Cycle
The Business Cycle: http://www.youtube.com/watch?v=jGP-vPEHRRE&list=PLF2A3693D8481F442&feature=share&index=22

  1. 19. Benefits of Economic Growth
https://www.youtube.com/watch?v=QKSlaujNS8Y

  1. 20. Challenges of Economic Growth


  1. 21. Defining and Measuring Unemployment
Unemployment:
http://www.youtube.com/watch?v=3VdL8wf9LM0&feature=share&list=PL82B772CE0EF7C618&index=19

Types of Unemployment:
http://www.youtube.com/watch?v=sFWE3SCbnPI&list=PL82B772CE0EF7C618&feature=share&index=20

  1. 22. Potential GDP
http://youtu.be/mm5EuWYdTZw

  1. 23. Nature of the Business Cycle


  1. 24. Aggregate Demand


  1. 25. Aggregate Supply


  1. 26. Macroeconomic Equilibrium


  1. 27. Neoclassical Economics
http://en.wikipedia.org/wiki/Neoclassical_economics

  1. 28. Keynesian Economics
Keynesian Economics and Fiscal Policy: http://www.youtube.com/watch?v=1qhJPqyJRo8&list=PLF2A3693D8481F442&feature=share&index=25

  1. 29. The Multiplier Effect
https://www.youtube.com/watch?v=fo0Lge133lQ

  1. 30. Monetary Policy
Monetary Policy: http://www.youtube.com/watch?v=DjTs-rjVkB8&feature=share&list=PLF2A3693D8481F442&index=28

Monetary Policy: https://www.youtube.com/watch?v=HdZnOQp4SmU&list=PLF2A3693D8481F442&index=33

  1. 31. Fiscal policy and he Federal Budget
http://www.thecanadianencyclopedia.ca/en/article/fiscal-policy/

  1. 32. Automatic Stabilizers in the economy
http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/discretionary-fiscal-policy-stabilizers.asp

  1. 33. Inflationary Gaps and Fiscal Policy


  1. 34. Deflationary Gaps and Fiscal Policy


  1. 35. Impact of Fiscal Policy on the Economy






MIDTERM EXAM – Part 1 & 2, Chapters 1-6



Part 2 of 3 – Money, Banking and Monetary Policy

Topic
Audio/Video/Web Links
Reading Links
  1. 1. Characteristics of Money
What is Money: http://www.youtube.com/watch?v=DjTs-rjVkB8&feature=share&list=PLF2A3693D8481F442&index=28
Text: Read Chapter 8 – Money and Banking
  1. 2. Functions of Money
http://www.youtube.com/watch?v=MHNMCIMWhlg&list=PL82B772CE0EF7C618&feature=share&index=22

  1. 3. The Creation of Money by Banks
How money is Created: http://www.youtube.com/watch?v=pZRvja7Mvrw&list=PLF2A3693D8481F442&feature=share&index=29

  1. 4. Role of the Bank of Canada


  1. 5. Role of the Commercial Banks


  1. 6. Determining the Interest Rate

Text: Read Chapter 9 – Money Markets
  1. 7. Calculating the Money Multiplier


  1. 8. The Money creation potential of the banking System


  1. 9. Interest Rates, the Money Supply, and Monetary Policy

Text: Read Chapters 6 & 7 – Monetary Policy and Fiscal Policy
  1. 10. The Effectiveness of Monetary Policy








Part 3 of 3 – International Trade


Topic
Audio/Video/Web Links
Reading Links
  1. 1. Importance of Trade


  1. 2. Concept of Specialization
Trade: http://www.youtube.com/watch?v=sFvX5dt8ufs&list=PL82B772CE0EF7C618&feature=share&index=9
Trade 2: http://www.youtube.com/watch?v=3wCc0uJ-Cxo&list=PL82B772CE0EF7C618&feature=share&index=10
Text: Read Chapter 10 – International Trade
  1. 3. Theory of Comparative Advantage
Comparative Advantage: http://www.youtube.com/watch?v=38hvvAzgXZY&feature=share&list=PLF2A3693D8481F442&index=33

  1. 4. Advantages of Specialization


  1. 5. Barriers to trade
Restrictions on Trade: http://www.youtube.com/watch?v=Y2X3KPilAt0&feature=share&list=PLF2A3693D8481F442&index=34

Types of Trade Restrictions:
http://www.youtube.com/watch?v=_e2gQxN1OBg&list=PLF2A3693D8481F442&feature=share&index=35

  1. 6. Benefits of Trade Agreements


  1. 7. Canada’s Balance of Payments


  1. 8. Foreign Exchange
Foreign Exchange: http://www.youtube.com/watch?v=xwtgByffoUw&feature=share&list=PLF2A3693D8481F442&index=32
Text: Read Chapter 11 – Exchange Rates
  1. 9. Fixed Exchange Rates


  1. 10. Flexible(Floating) Exchange Rates


  1. 11. Monetary and Fiscal policy impact on exchange rates


  1. 12. International Monetary Reserves






Final Exam – Focus Part 3, Coverage Units 1-3, Chapters 1-6, and 7-12








Course Syllabus

Topics
Unit 1 - Introduction
**Microeconomics versus Macroeconomics**
**http://youtu.be/ukQ1ZVCp72o**

**Production Possibilities**
**http://youtu.be/gbv6TVeCjyg**

**Factors of Production**
http://youtu.be/0PgP0dXAGAE



Unit 2 – Measuring National Income
**Circular Flow**
http://youtu.be/V5_IOkWqlfY


**Equilibrium and National Income**
http://youtu.be/gv-rrpOt40s


**Measuring National Income**

**Issues with Measuring GDP**