Courses Catalogue

Introduction To Macroeconomics

COURSE CODE: ECO1201
COURSE CREDIT UNIT: 3
ACADEMIC PROGRAMME: Human Resource Management
COLLEGE/SCHOOL/FACULTY: College of Economics and Management
STATUS: Core
PROGRAMME TYPE: Undergraduate

Course Content and Outline

General Introduction to macroeconomics

Meaning of macroeconomics,

General imbalances that macroeconomics address

Importance of macroeconomics

How macroeconomics affect the day today life of the people

National Income

Meaning of national Income

Definition of concepts

Determinants of the level of national income

Measurement of national income

  • Income Distribution
  • Cost and standards of living

The classical theory of income, output and employment

Introduction and analysis of classical theory

Say’s law of the market

Critique of the Say’s law  

The Principle of Effective demand

Meaning of the principle

Aggregate demand price

Aggregate supply price

Determinants of effective demand

Importance of effective demand

The Consumption Function


Meaning of consumption function

Properties of technical attributes of the consumption function

Significance of MPC

Keynes’ psychological law of consumption

Determinants of consumption function

Implication of the Keynesian law and importance of consumption function

Measures to raise the propensity to consume

The Investment Function


Meaning of investment

Measuring of capital and investment

Types of investment

Induced versus autonomous investment

Determinants of the level of investment

The marginal efficiency of investment

Distinction between MEC and MEI

Factor other than interest rate that affect the inducement to invest

Saving and investment equality

 The concept of Multiplier


Meaning of multiplier

Measurement and derivation of investment multiplier

Assumption of multiplier

Leakages of multiplier

Importance of multiplier

Criticism of multiplier

Multiplier in an under developed economy

The Keynesian theory of income, output and employment

Balanced budget multiplier and foreign trade multiplier

Income determination in a closed and open Economy


Income determination in a closed economy

Determination of equilibrium level of income, equality of aggregate demand and aggregate supply

Equality of saving and investment

Income determination in an open economy

Determination of equilibrium leveler of income

 Wage-price flexibility and employment


Introduction

The classical view

Keynesian criticism of the classical view

Keynesian view on the money-wage reduction and employment

The Keynesian effect and its criticism

The Pigou effect and its criticism

Difference between the pigou effect and real balance effect

Flexible wage policy Vs flexible monetary policy

Inflation

Introduction and meaning of inflation

The inflationary gap

Demand-pull / monetary theory of inflation

Cost-push inflation

Demand-pull vs. cost-push inflation

Mixed demand-pull cost-push inflation

Sectoral or demand-shift inflation, structural inflation

Mark-up inflation

Open and suppressed inflation

Monetary policy: Instruments and Types

Instruments of monetary policy

Expansionary monetary policy

Restrictive monetary policy

Role of monetary policy in developing economy

MODE OF DELIVERY

  • Lectures
  • Reading assignments
  • Discussion
  • Field trips
  • Guided Discovery

INSTRUCTIONAL MATERIALS/EQUIPMENT

  • Whiteboard and Markers
  • Flip Charts
  • LCD Projectors
  • CDs, DVDs and Tapes