Program Overview

Principles of Economics 2 (Macroeconomics)

Course Description

This course provides students with a sound understanding of basic economic concepts and methods of economic analysis, with an emphasis on modern macroeconomics and its application to theoretical and real-world problems. At the end of this course, students will have the ability to develop analytical skills using diagrams and simple mathematics, equip students with the ability to communicate and report findings, and provide them with the skill of critical thinking and time management.

Course Goals

• Estimate and analyze macroeconomic variables such as Gross Domestic Product, unemployment rate, inflation rate, and balance of payments.
• Appraise the relevance of Economics to society and appreciate how the laws of Economics are developed.
• Explain real-life economic issues through an application of basic macroeconomic principles.
• Recognize how to efficiently use available economic resources through aggregate demand and aggregate supply and their equilibrium.
• Distinguish the difference between microeconomics and macroeconomics and their diversified economic tools.
• Understand how mathematical expressions relate to economic principles.

Course Outline

The course focuses on Macroeconomic Analysis and its role in understanding the overall economic performance of a country. It covers concepts such as unemployment, inflation, aggregate demand, aggregate supply, business cycles, the money multiplier, and the use of different economic policies (fiscal, monetary, and trade policies) in stabilizing the economy. It also describes different methods of measuring Gross Domestic Product (GDP) and emphasizes the link between income, consumption, saving, and investment.

Course Objectives

a. Knowledge and Understanding

1. Outline basic macroeconomic concepts and principles.
2. Identify macroeconomic principles related to decision-making, such as balance of payments, national income, unemployment, factors of production, and income distribution.
3. Recognize economic policies on the macro level, such as fiscal and monetary policies.
4. Investigate simple mathematical, verbal, and diagrammatic methods of analysis.
5. Draw alternative policy responses focusing on contemporary macroeconomic policies while referring back to specific macroeconomic models.

b. Intellectual Skills

1. Subdivide different macroeconomic methodological tools into mathematical and diagrammatical methods of analysis to explain macroeconomic issues.
2. Analyze the characteristics of alternative macroeconomic models.
3. Link macroeconomics with other social branches to facilitate the decision-making process.
4. Interpret key macroeconomic principles to various practical and policy issues.
5. Examine different macroeconomic data analysis techniques in analyzing and interpreting international economic phenomena.

c. Professional and Practical Skills

1. Conduct simplified supply and demand models on the aggregate level to estimate the consequences of changes in the aggregate market on quantity and price.
2. Report in a simplified framework the process of modeling the main operations of any macro economy.
3. Contribute to decision-making by acquiring important skills in numeracy, literacy, and information processing.
4. Conduct profitability and cost-benefit analysis evaluations to analyze country macroeconomic performance if random and/or intended changes occur in the environment.
5. Use both qualitative and quantitative skills in solving economic problems.

d. General and Transferable Skills

1. Experience with conceptual frameworks effective for problem-solving and decision-making.
2. Acquire analytical reasoning skills, numeric and clear effective communication skills.
3. Test the ability of students to work under pressure and as part of a team.

Course Topics and Content

Teaching Methodology

• Demonstration videos
• Data show PowerPoint slides in lectures
• Group discussions
• Application in tutors

Assessment Method

Recommended Textbooks

• Michael Parkin, Microeconomics (11e.), Pearson
• G. Mankiw, Principles of Economics, Thomson/South-Western: Ohio, 2004