Office hours: Monday, 14.00-16.00 or by appointment (Room 1A)
Phone number: +355 445 12345
2.1 Course Prerequisite: College Algebra and Composition I
2.2 Required Textbooks:
Mankiw, N. Gregory., & Taylor, M. P., (2011). Economics (2 ed)., South-Western Cengage Learning EMEA.
Additional readings shall be assigned on a case-by-case basis and Web-based research will be provided during the class.
Required Readings should be completed prior to each class. Please come to class with questions on your readings. This will make class more enjoyable and productive.
2.3 Course Purpose:
This is an introductory economics course that covers topics in macroeconomics. Macroeconomics is the field of economics that studies the behavior of the economy as a whole and not just on specific companies, but entire industries and economies. The purpose of this course is to provide a basic understanding of the mechanisms that drive economic phenomena such as inflation, unemployment, growth and the like.
2.4 Course Description:
This course will introduce students to the basic concepts of macroeconomics. It emphasizes the tools used in modern economics to explain how the economy as a whole works and explores the diversity of opinions regarding this issue. The course provides students with an understanding of conventional macroeconomic thinking so that they can understand the essential principles of how the macro economy of nation states functions in a globalized world. Once students have completed this course they will be better placed to understand the causes of inflation and unemployment and the relevance of government monetary and fiscal policy in dealing with such economic problems. Furthermore, students will have a solid foundation upon which they can progress to higher level studies in Macroeconomics.
2.5 Course Objectives:
Objective 1: To learn basic economic concepts related to macroeconomics.
Students will be able to show that they understand economic concepts such as scarcity, GDP accounting, unemployment, inflation, aggregate demand/supply, real and nominal interest rates, fiscal policy, the operation of the Federal Reserve Bank and its monetary policy.
Objective 2: To use basic economic principles to analyze the macro-economy.
Students will be able to show that they can use economic principles to analyze economics by applying models such as demand and supply to determine quantity and price in markets, and various macro models to determine real GDP and price levels, and to analyze the effects of fiscal and monetary policy.
Objective 3: To use basic economic principles to be able to predict how changes in policy are expected to impact the economy.
Students will be able to show that they can use basic economic principles to analyze how changes in fiscal policy (taxes, government spending and changing deficits/surpluses) and monetary policy are expected to impact outcomes such as unemployment and inflation.
Ten Principles of Economics
|· Course introduction, subjects and requirements.
· Introduction to the economist’s world view.
Reading: chapter 1
Thinking like an Economist. Interdependence and the Gains from Trade
|· How economists approach their field of study.
· Theory of comparative advantage; why individuals trade with their neighbors, as well as why nations trade with other nations. Reading: chapter 2 and 3
Measuring a Nation’s Income. Measuring the Cost of Living
|Issues in Macroeconomics:
· Gross domestic product and related statistics from national income accounts.
· Measurement and use of the consumer price index.
Reading: chapter 23 and 24
Production and Growth
|Behavior of the real economy in the long run (Part 1/3):
· Determinants of large variation in living standards over time and across countries.
Reading: chapter 25
Saving, Investment, and the Financial System
|Behavior of the real economy in the long run (Part 2/3):
· The types of financial institutions in our economy and the role of these institutions in allocating resources.
Reading: chapter 26
|Behavior of the real economy in the long run (Part 3/3):
· The long-run determinants of the unemployment rate, including job search, minimum-wage laws, the market power of unions, and efficiency wages.
Reading: chapter 28
The Monetary System
The long-run behavior of money and prices (Part 1/2):
· The economist’s concept of money: the role of central bank in controlling the quantity of money.
Reading: chapter 29
Money Growth and Inflation
| The long-run behavior of money and prices (Part 2/2):
· Classical theory of inflation and the costs that inflation imposes on a society
Reading: chapter 30
Open-Economy Macroeconomics: Basic Concepts
|The macroeconomics of open economies, maintaining the long-run assumptions of price flexibility and full employment (Part 1/2):
· The relationship among saving, investment, and the trade balance, the distinction between the nominal and real exchange rate, and the theory of purchasing-power parity.
Reading: chapter 31
A Macroeconomic Theory of the Open Economy
|The macroeconomics of open economies, maintaining the long-run assumptions of price flexibility and full employment (Part 2/2):
· The classical model of the international flow of goods and capital budget deficits and trade deficits; macroeconomic effects of trade policies.
Reading: chapter 32
Midterm 2, Aggregate Demand and Aggregate Supply
Short-run fluctuations around the long-run trend (Part 1/3):
· The business cycle and the model of aggregate demand and aggregate supply.
Reading: chapter 34
The Influence of Monetary and Fiscal Policy on Aggregate Demand
|Short-run fluctuations around the long-run trend (Part 2/3):
· Policymakers and aggregate-demand curve.
Reading: chapter 35
The Short-Run Trade-off between Inflation and Unemployment
|Short-run fluctuations around the long-run trend (Part 3/3):
· Why policymakers who control aggregate demand face a tradeoff between inflation and unemployment. Trying to understand why this tradeoff exists in the short run, why it shifts over time, and why it does not exist in the long run.
Reading: chapter 36
Note: The instructor reserves the right to make changes in the syllabus that do not affect the total amount of work required by students.
In-class Participation (10%): Attendance is mandatory but participation also requires that the student in class will be actively engaged into class discussion and other activities.
Assignments (10%): Homework will be considered as an important part of the students. There will be problems assigned for each chapter we cover. This work will be entirely for the students to practise and exercise on topics and issues that come out during the class.
Mid-Term Exam (40%): two midterm exams worth of 20% each will be applied during the course. Multiple-choice, essay questions and problems will be used to better evaluate the efforts of the student.
Final Exam(40%): There will be a cumulative final exam worth 40% of the final grade.
Grading Scale: Grading scale follows the official UNYT as below:
Percent of Total Grade
Generally Accepted Meaning
distinctly above average
|D+||67-69||Work that is significantly below average|
|F||0-59||Work that does not meet minimum
standards for passing the course
For support related to study skills and time management, the Academic Support Center offers students tutoring and coaching (please feel free to contact Dr. A Canollari, firstname.lastname@example.org). The Writing Center is another service created with the aim to give students feedback and help with papers and other writing assignments. If you feel that you have any exceptional learning difficulties you can stop by the UNYT Counseling Center. For information related to the Counseling Center or any of these centers, please contact Dr. Enila Cenko, your academic advisor or me. Dr. Enila Cenko can be reached at email@example.com.