Lecture and Seminar.
- Introduction to macroeconomics.
- Measuring macroeconomic variables.
- Aggregate expenditure model of income determination.
- Aggregate demand-aggregate supply model of income determination.
- Business cycles and fluctuations in national income.
- Fiscal policy.
- The money supply, the banking system, the Bank of Canada and monetary policy.
- Trade theory, including comparative advantage, and protectionism.
- Balance of payments and macroeconomic policy.
- Foreign exchange rates.
At the end of the course, the successful student should be able to:
- construct a model for national income determination and analyze the effects of a change in one of the variables, as in multiplier analysis;
- analyze the effects of inflation and deflation, and develop policy alternatives.
- apply the economic concepts of supply and demand to explain the determination of foreign exchange and interest rates;
- analyze the effectiveness of monetary and fiscal policies under fixed and flexible exchange rate regimes;
- analyze the policy options available to central authorities to maintain both internal and external balance in an open economy.
|Final Examination||30% - 40%|
|Term Examination(s)||30% - 70%|
|Assignments||0% - 30%|
|Participation and/or Quizzes||0% - 10%|
THERE WILL BE A MINIMUM OF THREE (3) EVALUATIONS.
Textbooks and Materials to be Purchased by Students
The main text is to be chosen from the following, as determined by the instructor:
- Lipsey, R.G., Purvis et al. Economics, Latest Ed. New York: Harper & Row.
- Mankiw, N.G. et al. Principles of Macroeconomics, Latest Ed. Thomson Nelson.
- McConnel, Campbell R., Brue et al. Economics, Latest Ed. Toronto: McGraw-Hill Ryerson Limited
- Parkin, Michael and Robin Bade. Economics: Canada in the Global Environment, Latest Ed. Don Mills: Addison-Wesley Publishers Limited.
- Supplementary material may be chosen from the following, as determined by the instructor:
Study guides for the above texts and the available software.
BC Principles of Math 11. ECON 1101 recommended.