ECON*1100 Introductory Macroeconomics – Course Structure and Key Concepts

Course Overview

Introduction to Macroeconomics

This course provides an introduction to macroeconomic principles, focusing on the Canadian economy. Students will learn about aggregate performance, policy analysis, and the determinants of national income, employment, price level, and economic growth. The course emphasizes the role of monetary and fiscal policies in influencing macroeconomic outcomes.

• Aggregate Performance: Study of the overall functioning of the economy, including GDP, unemployment, and inflation.

• Policy Analysis: Examination of how government policies affect economic stability and growth.

• Canadian Context: Application of macroeconomic concepts to the Canadian economy.

Course Structure

Main Units and Topics

The course is organized into several units, each covering key macroeconomic topics. Below is an outline of the main units and their associated chapters from the required textbook.

• Unit 01: Introduction to Macroeconomics: How Markets Work

• Unit 02: Macroeconomic Indicators and Their Measurement

• Unit 03: Economic Growth

• Unit 04: The Economy in the Short Run

• Unit 05: Monetary and Fiscal Policy

• Unit 06: Macroeconomics in an Open Economy

Key Macroeconomic Concepts

Macroeconomic Indicators

Macroeconomic indicators are essential for measuring the health and performance of an economy. The most important indicators include:

• Gross Domestic Product (GDP): The total market value of all final goods and services produced within a country in a given period. Formula: $GDP = C + I + G + (X - M)$, where $C$ = Consumption, $I$ = Investment, $G$ = Government Spending, $X$ = Exports, $M$ = Imports.

• Unemployment Rate: The percentage of the labor force that is unemployed and actively seeking work. Formula: $\text{Unemployment Rate} = \frac{\text{Number of Unemployed}}{\text{Labor Force}} \times 100$

• Inflation Rate: The rate at which the general level of prices for goods and services is rising. Formula: $\text{Inflation Rate} = \frac{\text{CPI}_{\text{current}} - \text{CPI}_{\text{previous}}}{\text{CPI}_{\text{previous}}} \times 100$

Economic Growth

Economic growth refers to the increase in the value of goods and services produced by an economy over time. It is typically measured by the growth rate of real GDP.

• Sources of Growth: Capital accumulation, technological progress, and labor force expansion.

• Policies for Growth: Investment in education, infrastructure, and innovation.

• Business Cycles: Fluctuations in economic activity characterized by periods of expansion and contraction.

Aggregate Demand and Aggregate Supply

Aggregate demand and aggregate supply are fundamental concepts for understanding short-run economic fluctuations.

• Aggregate Demand (AD): The total demand for goods and services in an economy at a given overall price level and in a given period.

• Aggregate Supply (AS): The total supply of goods and services that firms in an economy plan on selling during a specific time period.

• Equilibrium: The point where AD equals AS determines the overall price level and output.

Monetary and Fiscal Policy

Monetary and fiscal policies are tools used by governments to influence macroeconomic outcomes.

• Monetary Policy: Actions by central banks to manage the money supply and interest rates. Example: The Bank of Canada adjusting the overnight rate to control inflation.

• Fiscal Policy: Government decisions on taxation and spending to influence economic activity. Example: Increasing government spending during a recession to boost aggregate demand.

Macroeconomics in an Open Economy

An open economy engages in international trade and finance, affecting exchange rates and the balance of payments.

• Exchange Rates: The price of one currency in terms of another.

• Balance of Payments: A record of all economic transactions between residents of a country and the rest of the world.

• Trade Policy: Government actions that influence international trade flows.

Course Learning Outcomes

Skills and Knowledge Developed

• Recognize and apply macroeconomic concepts including GDP, price indices, growth, exchange rates, interest rates, monetary/fiscal policy, and more.

• Measure economic activity and interpret macroeconomic indicators.

• Analyze short-run and long-run macroeconomic outcomes using models and data.

• Evaluate the impact of monetary, fiscal, and exchange rate policy.

• Interpret Canadian economic performance in historical and global contexts.

Assessment Structure

Grading Breakdown

Assessment Item	Weight
MyEconLab Quizzes	50%
Tests	30%
Final Exam	20%

Required Textbook

Macroeconomics, 4th Canadian Edition (2024)

• Authors: Glenn Hubbard and Anthony Patrick O'Brien

• Publisher: Pearson

• ISBN: 9780137365888

Students are required to use the latest edition for quizzes and tests.

Additional Information

• Course uses MyEconLab for quizzes and assignments.

• Respondus LockDown Browser required for online tests and final exam.

• Course policies include academic integrity, accessibility, and equity statements.

Additional info: The syllabus covers all major topics listed in the standard Macroeconomics curriculum, including GDP, unemployment, inflation, growth, aggregate demand and supply, monetary and fiscal policy, and open economy issues.