ECON*1100 Introductory Macroeconomics Syllabus Study Guide

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 total output, income, and expenditure in the economy.

• Policy Analysis: Examination of government interventions through fiscal and monetary policies.

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

Course Learning Outcomes

Key Competencies Developed

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

1. Recognize macroeconomic concepts including GDP, price indices, growth, exchange rates, interest rates, monetary/fiscal policy, and productivity.

2. Measure economic activity: GDP, unemployment, savings, and balance of payments.

3. Analyze equilibrium in the goods, money, and foreign exchange markets.

4. Distinguish between short-run and long-run macroeconomic outcomes.

5. Analyze financial markets, including the foreign exchange market and the money market.

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

7. Interpret 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

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 key indicator of economic performance.

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

• C: Consumption

• I: Investment

• G: Government Spending

• X: Exports

• M: Imports

• 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. It is typically measured as the percentage change in real GDP.

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

• 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\%$.

Monetary and Fiscal Policy

Monetary policy involves the management of interest rates and the money supply by a central bank (e.g., Bank of Canada) to achieve macroeconomic objectives such as controlling inflation and stabilizing the currency. Fiscal policy refers to government spending and taxation decisions aimed at influencing economic activity.

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

• Fiscal Policy Tools: Government spending, taxation, transfer payments.

• Example: Lowering interest rates to stimulate investment and consumption.

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 performance.

• Exchange Rate: 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.

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

Assessment Structure

Course Grading Components

Assessment in the course is based on quizzes, tests, and a final exam. The following table summarizes the weight of each component:

Assessment Item	Weight
MyEconLab Quizzes	25%
Tests	25%
Final Exam	50%

Required Textbook

Macroeconomics, 4th Canadian Edition (2024)

• Authors: Glenn Hubbard and Anthony Patrick O'Brien

• Publisher: Pearson

• ISBN: 9780137526896

Students are required to purchase the textbook and access MyEconLab for assignments and quizzes.

Course Policies and Support

Academic Integrity and Support

• Academic Integrity: Students must adhere to university policies regarding honesty and plagiarism.

• Support: Instructor and teaching assistants are available for help via email and online office hours.

• Technology Requirements: Access to MyEconLab, Respondus LockDown Browser, and a computer with internet connection.

Schedule Overview

Weekly Topics and Readings

The course is divided into weekly units, each covering specific chapters from the textbook. Students are expected to complete readings, assignments, and quizzes as scheduled.

• Weeks 1-2: Introduction and Macroeconomic Indicators

• Weeks 3-4: Economic Growth

• Weeks 5-6: The Economy in the Short Run

• Weeks 7-8: Monetary and Fiscal Policy

• Weeks 9-10: Macroeconomics in an Open Economy

Additional Info

• Students are encouraged to use online resources and participate in discussion forums for additional support.

• All assessments are completed online except for the final exam, which is in-person.

• Extensions and accommodations are available for medical or compassionate reasons.