ECON*1100 Introductory Macroeconomics Syllabus and Study Guide

Course Overview

Introduction to Macroeconomics

This course provides a comprehensive introduction to macroeconomic principles, focusing on the Canadian economy. Students will explore aggregate performance, policy analysis, determinants of national income, employment, price level, and the effects of monetary and fiscal policies on economic growth and stability.

• Key Macroeconomic Concepts: GDP, price indices, growth, exchange rates, interest rates, monetary and fiscal policy, unemployment, savings, and balance of payments.

• Application: Analysis of Canadian economic performance in historical and global contexts.

Course Structure

Units and Topics

The course is organized into the following units, each corresponding to major macroeconomic 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

Learning Outcomes

Core Competencies

By the end of the course, students should be able to:

• Recognize and define macroeconomic concepts including GDP, price indices, growth, exchange rates, interest rates, monetary policy, fiscal policy, unemployment, savings, and balance of payments.

• Measure economic activity using indicators such as GDP, unemployment, savings, and balance of payments.

• Analyze the relationship between short-run and long-run macroeconomic outcomes, including equilibrium and adjustment mechanisms.

• Interpret financial markets, including the foreign exchange market, the money market, and the bond market.

• Explain and give examples of monetary, fiscal, and exchange rate policy.

• Justify an opinion on the role of government with respect to the values of Canadian macroeconomic policies.

• Interpret Canadian economic performance in a historical and global context.

Key Macroeconomic Topics

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 performance.

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

• Components: Consumption (C), Investment (I), Government Spending (G), Net Exports (Exports (X) minus Imports (M)).

• Example: If Canada produces $2 trillion in goods and services, its GDP is $2 trillion.

Unemployment and Inflation

Unemployment measures the percentage of the labor force that is jobless and actively seeking work. Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.

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

• Inflation Rate Formula: $\text{Inflation Rate} = \frac{\text{CPI}_{\text{current}} - \text{CPI}_{\text{previous}}}{\text{CPI}_{\text{previous}}} \times 100$

• Example: If the CPI increases from 120 to 126, the inflation rate is $\frac{126-120}{120} \times 100 = 5\%$.

Economic Growth

Economic growth refers to the increase in a country’s output of goods and services over time, typically measured by the growth rate of real GDP.

• Growth Rate Formula: $\text{Growth Rate} = \frac{GDP_{\text{current}} - GDP_{\text{previous}}}{GDP_{\text{previous}}} \times 100$

• Sources: Capital accumulation, technological progress, labor force growth.

• Example: If GDP grows from $2 trillion to $2.1 trillion, the growth rate is$\frac{2.1-2.0}{2.0} \times 100 = 5\%$.

Aggregate Demand and Aggregate Supply

Aggregate demand (AD) is the total demand for goods and services in an economy at a given overall price level and in a given period. Aggregate supply (AS) is the total supply of goods and services that firms in an economy plan on selling during a specific time period.

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

• Short-run vs. Long-run: Short-run aggregate supply can be affected by changes in input prices, while long-run aggregate supply is determined by factors such as technology and resources.

• Example: A decrease in interest rates may increase investment, shifting AD to the right.

Monetary and Fiscal Policy

Monetary policy involves the management of interest rates and the total supply of money in circulation, typically conducted by a central bank. Fiscal policy refers to government spending and tax policies used to influence economic conditions.

• Monetary Policy Tools: Open market operations, reserve requirements, discount rate.

• Fiscal Policy Tools: Government spending, taxation.

• Example: The Bank of Canada may lower interest rates to stimulate economic activity.

Macroeconomics in an Open Economy

An open economy engages in international trade and finance. Key concepts include exchange rates, balance of payments, and the impact of global markets on domestic economic policy.

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

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

• Example: A depreciation of the Canadian dollar makes exports cheaper and imports more expensive.

Assessment Structure

Course Assessment Table

The following table summarizes the assessment components and their respective weights:

Assessment Item	Weight
MyEconLab Quizzes	50%
Tests	50%
Total	100%

Course Policies and Resources

Academic Integrity and Support

• Academic Integrity: Students are expected to uphold the highest standards of academic honesty.

• Support Services: Technical support, health and wellbeing resources, and accessibility accommodations are available.

• Technology Requirements: Reliable internet connection, computer system meeting course requirements, and familiarity with online learning tools.

Important Dates

• Final Exam: Saturday, December 6, 2025

• Last Day to Drop Course: November 28, 2025

Textbook and Learning Resources

Required Textbook

• Title: Macroeconomics (4th Canadian Edition, 2024)

• Authors: Glenn Hubbard and Anthony Patrick O'Brien

• ISBN: 9780137896586

Additional resources and reserve materials are available through the University of Guelph library and course website.

Summary Table: Course Units and Corresponding Chapters

Unit	Main Topic	Textbook Chapters
Unit 01	Introduction to Macroeconomics	Chapters 1, 2 (section 2.1 only), 3
Unit 02	Macroeconomic Indicators	Chapters 4, 5 (sections 5.1, 5.2, 5.3)
Unit 03	Economic Growth	Chapter 5 (sections 5.4, 5.5, 5.6, 5.7), 6
Unit 04	The Economy in the Short Run	Chapter 8, Appendix
Unit 05	Monetary and Fiscal Policy	Chapters 10, 11, 12, Appendix
Unit 06	Macroeconomics in an Open Economy	Chapters 14 (sections 14.1-14.6)

Additional Info

• Course includes online quizzes, assignments, and tests administered via MyEconLab and Respondus LockDown Browser.

• Students are expected to participate in online discussions and utilize provided resources for support.

• Policies regarding academic integrity, extensions, and technology requirements are strictly enforced.