Principles of Macroeconomics: Course Outline and Study Guide

Principles of Macroeconomics: Course Outline and Study Guide

Course Overview

This course introduces students to the fundamental principles of macroeconomic theory, focusing on the measurement and analysis of economic activity at the national and global levels. Students will learn how macroeconomic indicators are determined, the causes and consequences of economic fluctuations, and the role of government policy in influencing economic outcomes.

Calendar Description

• Course Code: ECON 212

• Credits: 3

• Typical Topics: Output, inflation, jobs, business cycles, financial markets, foreign exchange markets, government policy

• Relevance: The course uses real-world data (e.g., unemployment and inflation rates) to illustrate macroeconomic concepts and their impact on society.

Learning Outcomes

Upon successful completion of this course, students will be able to:

• Explain how output, inflation, and employment are measured, and how these indicators fluctuate across the business cycle.

• Analyze the causes and costs of inflation and deflation.

• Apply the supply and demand model to financial and foreign exchange markets, evaluate the impact of economy-wide shocks, and recommend government policies to mitigate adverse effects.

Main Topics and Subtopics

Measurement of Macroeconomic Variables

• Gross Domestic Product (GDP): The total market value of all final goods and services produced within a country in a given period.

• Unemployment Rate: The percentage of the labor force that is unemployed and actively seeking work.

• Inflation Rate: The percentage change in the general price level of goods and services over a period of time.

• Example: "Canadian unemployment rate is 6.9% (June 2025), up from 6.4% (June 2024)."

Business Cycles

• Definition: Fluctuations in economic activity, such as production and employment, over time.

• Phases: Expansion, peak, contraction (recession), trough.

• Key Point: Business cycles affect output, employment, and inflation.

Inflation and Deflation

• Inflation: A sustained increase in the general price level.

• Deflation: A sustained decrease in the general price level.

• Causes: Demand-pull inflation, cost-push inflation, monetary factors.

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

• Example: "The inflation rate fell to 1.7% in July, down from 1.9% in June 2025."

Financial Markets and Foreign Exchange

• Financial Markets: Platforms where financial instruments (stocks, bonds, etc.) are traded.

• Foreign Exchange Market: The market where currencies are traded and exchange rates are determined.

• Application: Understanding how shocks in these markets can affect the broader economy.

Government Policy and Macroeconomic Stability

• Fiscal Policy: Government decisions on taxation and spending to influence economic activity.

• Monetary Policy: Central bank actions (e.g., setting interest rates) to control money supply and achieve macroeconomic objectives.

• Example: "The Bank of Canada’s policy interest rate is 2.75% as of June 2025, down from 3.75% in June 2024."

Course Structure and Assessment

• Delivery Mode: Face-to-face, 1.5 hours, twice per week

• Assessment Components:

  • Quizzes (online): 40%

  • Test 1 (in-class): 25%

  • Test 2 (in-class): 25%

  • Test 3 (in-class): 10%

• Grading Scale:

  • A+: 90–100%

  • A: 85–89%

  • A-: 80–84%

  • B+: 76–79%

  • B: 72–75%

  • B-: 68–71%

  • C+: 64–67%

  • C: 60–63%

  • C-: 55–59%

  • D: 50–54%

  • F: <50%

Sample Assessment Table

Assessment	Weight	Topics Covered
Quizzes (online)	40%	All chapters
Test 1	25%	Chapters 4, 5, and 7
Test 2	25%	Chapters 8, 9, and 10
Test 3	10%	Chapters 13 and 14

Required Materials

• Textbook: Macroeconomics: Canada in the Global Environment (12th edition) by Parkin and Bade.

• Available for purchase at the university bookstore or online.

Academic Integrity and Policies

• Students are expected to adhere to the university’s academic integrity policies.

• Late submissions incur a penalty of 5% per day.

• Electronic devices may be restricted during tests.

Resources and Support

• Academic advising, writing centre, math learning centre, counselling, accessibility services, and more are available to support student success.

Additional info:

• This syllabus provides a structured overview of the course, including learning outcomes, assessment methods, and key macroeconomic topics. For detailed content, students should refer to the textbook and lecture materials.