ECON*1100 Introductory Macroeconomics – Course Syllabus and Study Guide

Course Overview

This course provides an introduction to macroeconomic principles, focusing on the Canadian economy. It covers aggregate performance and policy, determinants of national income, employment, price level, economic growth, and the roles of monetary and fiscal policy in influencing macroeconomic outcomes.

Key Learning Outcomes

• Recognize and define core macroeconomic concepts such as GDP, price indices, economic growth, inflation, interest rates, unemployment, money, monetary and fiscal policy, and exchange rates.

• Measure macroeconomic activity using indicators like GDP, unemployment, savings, and balance of payments.

• Analyze short-run and long-run macroeconomic outcomes, including the effects of monetary and fiscal policy, and the relationship between inflation and unemployment.

• Understand the functioning of financial markets, the foreign exchange market, and the money market.

• Explain and evaluate the effects of monetary, fiscal, and exchange rate policy.

• Interpret Canadian economic performance in historical and global contexts.

Course Structure and Topics

The course is organized into the following main units, each corresponding to foundational macroeconomics topics:

• 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

Unit Breakdown and Relevant Chapters

Unit	Main Topics	Textbook Chapters
Unit 01	Foundations, Market Systems, Demand & Supply	Chapters 1, 2, 3
Unit 02	GDP, Price Indices, Unemployment, Inflation	Chapters 4, 5
Unit 03	Economic Growth, Productivity, Business Cycles	Chapter 6, 7
Unit 04	Aggregate Expenditure, Aggregate Demand & Supply	Chapters 8, 9
Unit 05	Money, Banking, Monetary & Fiscal Policy	Chapters 10, 11, 12
Unit 06	Open Economy Macroeconomics, Exchange Rates	Chapter 14

Major Macroeconomic Concepts

Gross Domestic Product (GDP)

GDP is the total market value of all final goods and services produced within a country in a given period. It is a primary indicator of economic activity.

• Formula: $GDP = C + I + G + (X - M)$

• C: Consumption

• I: Investment

• G: Government Spending

• X: Exports

• M: Imports

Example: If a country has $C = 500$, $I = 200$, $G = 300$, $X = 100$, and $M = 150$, then $GDP = 500 + 200 + 300 + (100 - 150) = 950$.

Unemployment and Inflation

Unemployment Rate measures the percentage of the labor force that is jobless and actively seeking employment.

• Formula: $Unemployment\ Rate = \frac{Number\ of\ Unemployed}{Labor\ Force} \times 100$

Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.

• Measured by: Consumer Price Index (CPI), Producer Price Index (PPI)

• Formula for Inflation Rate: $Inflation\ Rate = \frac{CPI_{current} - CPI_{previous}}{CPI_{previous}} \times 100$

Economic Growth

Economic growth refers to the increase in the value of goods and services produced by an economy over time, typically measured as the percentage increase in real GDP.

• Long-run growth is driven by increases in productivity, capital, labor, and technological progress.

• Business cycles are short-run fluctuations in economic activity.

Aggregate Demand and Aggregate Supply

Aggregate Demand (AD) is the total quantity of goods and services demanded across all levels of an economy at a given overall price level and in a given period.

• Formula: $AD = C + I + G + (X - M)$

Aggregate Supply (AS) is the total quantity of goods and services that producers in an economy are willing and able to supply at a given overall price level.

Monetary and Fiscal Policy

Monetary policy involves the management of the money supply and interest rates by central banks (e.g., Bank of Canada) to influence economic activity.

• Tools: Open market operations, reserve requirements, policy interest rates

Fiscal policy refers to government spending and taxation decisions to influence macroeconomic conditions.

• Expansionary policy: Increases aggregate demand via higher government spending or lower taxes.

• Contractionary policy: Decreases aggregate demand via lower government spending or higher taxes.

Open Economy Macroeconomics

Examines how economies interact through trade, capital flows, and exchange rates.

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

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

Assessment Structure

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

Additional Information

• Textbook: Macroeconomics by Hubbard, O'Brien, and others (4th Canadian Edition, 2024).

• Course website and online resources are essential for quizzes, assignments, and communication.

• Academic integrity, accessibility, and university policies apply to all assessments and participation.

Additional info: This syllabus provides a comprehensive overview of the foundational topics in a college-level Macroeconomics course, aligning with standard chapter titles and learning outcomes in the discipline.