EC1210+-+Macroeconomics

=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

<span style="font-family: Arial,sans-serif; font-size: 10pt;"> **COURSE EVALUATION:**

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Contribution through Discussion Posts 10% <span style="font-family: Arial,sans-serif; font-size: 10pt;">Assignments (3 @ 5%) 15% <span style="font-family: Arial,sans-serif; font-size: 10pt;">Midterm Exam 30% <span style="font-family: Arial,sans-serif; font-size: 10pt;">Final Exam 45%

<span style="font-family: Arial,sans-serif; font-size: 10pt;"> **Detail**


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Contribution through Discussion Posts 10% **

<span style="font-family: Arial,sans-serif; font-size: 10pt;">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.


 * <span style="font-family: Arial,sans-serif; font-size: 10pt; line-height: 1.5;">Assignments (3 @ 5%) 15% **


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">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.__ **


 * **<span style="font-family: Arial,sans-serif; font-size: 10pt;">Assignment ** || **<span style="font-family: Arial,sans-serif; font-size: 10pt;">Problems (7th edition) ** || **<span style="font-family: Arial,sans-serif; font-size: 10pt;">Due Date ** || **<span style="font-family: Arial,sans-serif; font-size: 10pt;">Value ** ||
 * **<span style="font-family: Arial,sans-serif; font-size: 8pt;">Assignment 1 ** || **<span style="font-family: Arial,sans-serif; font-size: 7pt; line-height: 1.5;">1. ****<span style="font-family: Arial,sans-serif; font-size: 7pt; line-height: 1.5;">Chapter 1-36A p38 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">2. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 1-47A p41 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">3. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 3-36A p116 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">4. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 3-37A p117 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">5. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 3-41A p118 ** || **<span style="font-family: Arial,sans-serif; font-size: 8pt;">Friday, May 16, 2014 ** || **<span style="font-family: Arial,sans-serif; font-size: 8pt;">__/5__ ** ||
 * **<span style="font-family: Arial,sans-serif; font-size: 8pt;">Assignment 2 ** || **<span style="font-family: Arial,sans-serif; font-size: 7pt; line-height: 1.5;">1. ****<span style="font-family: Arial,sans-serif; font-size: 7pt; line-height: 1.5;">Chapter 4-36A p148 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">2. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 4-46A p150 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">3. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 4-47A p150 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">4. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 5-36A p187 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">5. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 5-42A p188 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">6. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 6-36A p229 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">7. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 6-42A p231 ** || **<span style="font-family: Arial,sans-serif; font-size: 8pt;">Friday, May 30, 2014 ** || **<span style="font-family: Arial,sans-serif; font-size: 8pt;">/5 ** ||
 * **<span style="font-family: Arial,sans-serif; font-size: 8pt;">Assignment 3 ** || **<span style="font-family: Arial,sans-serif; font-size: 7pt;">1. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 7-36A p260 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">2. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 8-36A p286 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">3. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 8-37A p287 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">4. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 9-36A p323 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">5. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 10-36A p357 **
 * <span style="font-family: Arial,sans-serif; font-size: 7pt;">6. ** **<span style="font-family: Arial,sans-serif; font-size: 7pt;">Chapter 11-36A p391 ** || **<span style="font-family: Arial,sans-serif; font-size: 8pt;">Wednesday, June 11, 2014 ** || **<span style="font-family: Arial,sans-serif; font-size: 8pt;">__/5 ** ||


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Midterm Exam 30% **

<span style="font-family: Arial,sans-serif; font-size: 10pt;">The Midterm exam will be an ONLINE exam consisting of **50 Multiple Choice** questions covering scheduled material up to the midterm.


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Final Exam 45% **

<span style="font-family: Arial,sans-serif; font-size: 10pt;">The Final exam will be a comprehensive **PAPER/Invigilated exam t**hat 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.

http://youtu.be/J1t_LL9X9Bk ||  || ** [] ** ||  ** Text: Read Chapters 1 & 2 **  || ||^  ||  ** [] **  ||^   || ** [] ** ||^  || ||^   || ||^   ||  ** [] ** ** Demand: ** ** [] ** ** Supply: ** ** [] ** ** Interaction of Supply and Demand: ** ** [] ** ||^  || ||^   || Also See: [] || **<span style="font-family: Calibri,sans-serif; font-size: 12pt; line-height: 1.5;">Text: Read Chapter 3 – Measuring the Economy 1 – GDP and Growth ** ||
 * **Preface** ||
 * **Topic** ||  **Audio/Video/Web Links**  ||  **Reading Links**  (Text 7th ed) ||
 * || **Course Overview Video**
 * # 1. What is Economics || ** What is Economics: **
 * # 2. Scarcity || ** Scarcity [] **  ||^   ||
 * # 3. Forced Choice from limited resources || ** Resources: [] **
 * # 4. Opportunity Cost || ** Opportunity Costs: **
 * # 5. Factors of Production || ** Factors of Production: **
 * # 6. Factor Payments ||  ||^   ||
 * # 7. Macroeconomics || ** Macro vs. Micro Economics [] **
 * # 8. Microeconomics || ** [] **
 * # 9. Supply, Demand and Price || ** Overview of Supply and Demand: **
 * # 10. Production Possibilities || ** [] **
 * ** Part 1 of 3 - National Output and Fiscal Policy ** ||
 * **Topic** ||  **Audio/Video/Web Links**  ||  ** Reading Links **  ||
 * # 1. Circular Flow in the Economy || See: []
 * # 2. National Income || National Income: [] ||^  ||
 * # 3. Economic Equilibrium ||  || ** Text: Read Chapter 4 – **
 * <span style="font-family: Calibri,sans-serif; font-size: 12pt;">Measuring the Economy 2 – Unemployment ** ||
 * # 4. National Income Accounting
 * 1) 5. Increases
 * 2) 6. Decreases
 * 3) 7. Accounting measures ||   ||   ||
 * # 8. Gross Domestic Product || GDP: []

[] ||  ||
 * # 9. Gross National Product ||  ||   ||
 * # 10. Challenges if GDP to measure National Income ||  ||   ||
 * # 11. Measuring Economic Growth || Measuring economic growth: [] || ** Text: Read Chapter 5 – Aggregate demand ** ||
 * # 12. Nominal GDP || [] ||  ||
 * # 13. Real GDP || Real GDP: [] ||  ||
 * # 14. Calculating GDP || []

[] ||  || []
 * # 15. Consumer Price Index || Price Changes in the Economy: [] ||  ||
 * # 16. Real Income || Real Income: http://www.youtube.com/watch?v=cwBpq5T0ks0&list=PLF2A3693D8481F442&feature=share&index=16 || ** Text: Read Chapter 6 – Aggregate Expenditure ** ||
 * # 17. GDP Deflator Index || [] ||  ||
 * # 18. The Business Cycle || The Business Cycle: [] ||  ||
 * # 19. Benefits of Economic Growth || [] ||  ||
 * # 20. Challenges of Economic Growth ||  ||   ||
 * # 21. Defining and Measuring Unemployment || Unemployment:

Types of Unemployment: [] ||  ||
 * # 22. Potential GDP || [] ||  ||
 * # 23. Nature of the Business Cycle ||  ||   ||
 * # 24. Aggregate Demand ||  ||   ||
 * # 25. Aggregate Supply ||  ||   ||
 * # 26. Macroeconomic Equilibrium ||  ||   ||
 * # 27. Neoclassical Economics || [] ||  ||
 * # 28. Keynesian Economics || Keynesian Economics and Fiscal Policy: http://www.youtube.com/watch?v=1qhJPqyJRo8&list=PLF2A3693D8481F442&feature=share&index=25 ||  ||
 * # 29. The Multiplier Effect || [] ||  ||
 * # 30. Monetary Policy || Monetary Policy: []

Monetary Policy: [] ||  || Trade 2: [] || ** Text: Read Chapter 10 – International Trade ** ||
 * # 31. Fiscal policy and he Federal Budget || [] ||  ||
 * # 32. Automatic Stabilizers in the economy || [] ||  ||
 * # 33. Inflationary Gaps and Fiscal Policy ||  ||   ||
 * # 34. Deflationary Gaps and Fiscal Policy ||  ||   ||
 * # 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. Characteristics of Money || What is Money: [] || ** Text: Read Chapter 8 – Money and Banking ** ||
 * # 2. Functions of Money || [] ||  ||
 * # 3. The Creation of Money by Banks || How money is Created: [] ||  ||
 * # 4. Role of the Bank of Canada ||  ||   ||
 * # 5. Role of the Commercial Banks ||  ||   ||
 * # 6. Determining the Interest Rate ||  || ** Text: Read Chapter 9 – Money Markets ** ||
 * # 7. Calculating the Money Multiplier ||  ||   ||
 * # 8. The Money creation potential of the banking System ||  ||   ||
 * # 9. Interest Rates, the Money Supply, and Monetary Policy ||  || ** Text: Read Chapters 6 & 7 – Monetary Policy and Fiscal Policy ** ||
 * # 10. The Effectiveness of Monetary Policy ||  ||   ||
 * **Part 3 of 3 – International Trade** ||  ||   ||
 * **Topic** ||  **Audio/Video/Web Links**  ||  ** Reading Links **  ||
 * # 1. Importance of Trade ||  ||   ||
 * # 2. Concept of Specialization || Trade: []
 * **Part 3 of 3 – International Trade** ||  ||   ||
 * **Topic** ||  **Audio/Video/Web Links**  ||  ** Reading Links **  ||
 * # 1. Importance of Trade ||  ||   ||
 * # 2. Concept of Specialization || Trade: []
 * # 3. Theory of Comparative Advantage || Comparative Advantage: [] ||  ||
 * # 4. Advantages of Specialization ||  ||   ||
 * # 5. Barriers to trade || Restrictions on Trade: []

Types of Trade Restrictions: [] ||  ||
 * # 6. Benefits of Trade Agreements ||  ||   ||
 * # 7. Canada’s Balance of Payments ||  ||   ||
 * # 8. Foreign Exchange || Foreign Exchange: [] || ** Text: Read Chapter 11 – Exchange Rates ** ||
 * # 9. Fixed Exchange Rates ||  ||   ||
 * # 10. Flexible(Floating) Exchange Rates ||  ||   ||
 * # 11. Monetary and Fiscal policy impact on exchange rates ||  ||   ||
 * # 12. International Monetary Reserves ||  ||   ||
 * || ** Final Exam – Focus Part 3, Coverage Units 1-3, Chapters 1-6, and 7-12 ** ||  ||
 * || ** Final Exam – Focus Part 3, Coverage Units 1-3, Chapters 1-6, and 7-12 ** ||  ||

Course Syllabus

Topics **Microeconomics versus Macroeconomics** [|**http://youtu.be/ukQ1ZVCp72o**] <span style="font-family: 'Arial','sans-serif'; font-size: 14px;">media type="youtube" key="ukQ1ZVCp72o" height="315" width="560" **Production Possibilities** [|**http://youtu.be/gbv6TVeCjyg**] <span style="font-family: 'Arial','sans-serif'; font-size: 14px;">media type="youtube" key="gbv6TVeCjyg" height="315" width="560" **Factors of Production** <span style="font-family: 'Arial','sans-serif'; font-size: 14px;">media type="youtube" key="0PgP0dXAGAE" height="315" width="420"
 * <span style="font-family: 'Arial','sans-serif'; font-size: 27px;">Unit 1 - Introduction **
 * <span style="font-family: 'Arial','sans-serif'; font-size: 14px;">[] **

**Circular Flow** <span style="font-family: 'Arial','sans-serif'; font-size: 14px;">media type="youtube" key="V5_IOkWqlfY" height="315" width="560"
 * <span style="font-family: 'Arial','sans-serif'; font-size: 29px;">Unit 2 – Measuring National Income **
 * <span style="font-family: 'Arial','sans-serif'; font-size: 14px;">[] **

**Equilibrium and National Income** [] media type="youtube" key="gv-rrpOt40s" height="315" width="560"

**Measuring National Income**

**Issues with Measuring GDP**