Download Syllabus203

‫قسم االقتصاد‬
Kingdom of Saudi Arabia
Ministry of Higher Education
King Abdul Aziz University
Faculty of Economics & Administration
Department of Economics
Course Syllabus
1st SEMESTER – 2014
Subject Title: Principles of Mِacroeconomics
Code: ECON
No.: 203
Sections : AAR & FAR
Semester: 1st Semester 2014
Lecture Place:
Buildings :420 Classrooms: 103A & 203 respectively
8;50 & 11:00-11:50 respectively
Timing: Sundays, Tuesdays & Thursdays: 8:00-
Instructor Name: Dr. Lobna Mohamed Abu El Ela Abdullah
E-mail: [email protected]
Site: http://labdullah.kau.edu.sa
Room No.: 2110, Building No.: 2
Telephone Number: 6400000 Ext: 26506
E-mail of Department: [email protected]
Head of Department (Girls’ Branch): Dr. Nesreen El Banawi
Room: 2229
Telephone: 6400000 extension 26026
E-mail: [email protected]
Office Hours : Sundays, Mondays, Tuesdays &Wednesdays from 11:00 to 13:00
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Office Hours: Sundays& Tuesdays& Thursdays: 10:00- 11:00
Mondays& Wednesdays: 8:30-11:00
Prerequisites: MATH 110 , ECON 107
Description of course and Motivation:
“ This is an introductory course that covers how the economy functions as a whole or how it works. To study the performance
of the economy as a whole, the course focuses on measuring some macroeconomic variables and how they fluctuate during
the business cycle.
Topics include the explanation( causes &effects) of the important macroeconomic variables such as output ,economic growth,
prices , inflation, and unemployment.
Also they include the role of the fiscal & the monetary policies to stabilize the economy and enhance economic growth.
Using of graphs and simple Algebra is very important to express the relationships between macroeconomic variables and to
measure them.
Course Objective:
The objective of the course is to familiarize the student with the economic methodology , the economic way of thinking and
the essentials of Macroeconomics.
This course focuses on the study of the economy as a whole ,so it deals with the definition and analysis of basic terms and
concepts such as GNP, inflation, unemployment, growth rate…etc.
Required Textbook:
Parkin, M.& Bade, R. Foundation of Macroeconomics. International Edition 5th edition. Pearson Education, Inc.2011
Available at University Book Store
SUPPLEMENTARY READINGS:
Business magazines, internet, and newspapers.
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How to Use the Readings:
There are special techniques to read the academic text you learn. Experts suggested that in order to start reading, it is better
to do the following steps:
 Read the introduction.
 Read the conclusion.
 Go through the sub-titles.
Also, you can take notes of main points and definitions. This will help you and make studying easier.
So before starting a new chapter, please follow the mentioned rules which will help you having a better understanding to
what you learn.
Course Outline and Distribution of Course Weekly:
Week
Date
Chapters
1&2
1st September
&
th
8 September
2
The Circular Flows
3
15th September
5
The Students should know the various definitions
used. See pages pp.114-117
4
22nd September
5
GDP Defined: A Measure of Total
Production and Income:
GDP, Income, and Expenditure
Measuring GDP: Expenditure
Approach
5
29th September
GDP: A Measure of Total Production
and Income: Measuring GDP:
Income Approach
The Students should know how to calculate
GDP by income approach.
See pages 121-122
5
Subject
Academic Advising: Addition
&Withdrawal
Introduction & Revision
3
Prerequisites Chapter-wise
The students must revise what they have studied in
Microeconomics ( chapters 1-3) in the textbook
The Student should have an idea about this model.
See pages pp.48-51
The Students should know how to calculate GDP by
adding the four components of expenditure. See
pages 119-120
6
6th October
GDP and Related Measures of
Production and Income
Unemployment and Full
Employment:
Sources of Unemployment
The Students should know and calculate the other
related measures of production & income such as
GNP ,National Income, Disposable Income..etc, See
pages 123 -125
The Student should know the uses of GDP in
measuring the performance of the economy as a
whole and its limitations. See pages 127-132
The Student should know the labor market
indicators used to study the labor market. See pages
144-146
The Student should know the meaning of full
employment and the sources of unemployment.
See page 155
6
Types of Unemployment
See pages 156-158
6
Full Employment, Natural Rate of
Unemployment
Unemployment and Real GDP:
Potential GDP, Output Gap
The Basics of Economic Growth :
Calculating Economic Growth
The Student should know the meaning of these
concepts and how to measure them. Pages 159
-161
The Sources of Economic Growth
What are the reasons of the economic growth are
found in pages220-222.
5
The Uses and Limitations of Real
GDP
7
20th October
6
Classes resume
after Hajj on
21st October
8
9
27th October
3th November
9
10
Jobs & Unemployment:
Labor Market Indicators
10th November
9
Achieving Faster Growth :
Preconditions of Economic Growth &
Polices to Achieve Faster Growth
11
17h November
How to measure the economic growth is the main
concern of this part . See pages 216-217
See pages 232-234
13
Aggregate Supply and Aggregate
Demand:
4
Students should know the aggregate supply basics
and what factors affecting aggregate supply. See
pages:
Aggregate Supply: Aggregate Supply
Basics
Changes in Aggregate Supply
12
24th November
13
Aggregate Demand:
Aggregate Demand Basics
Changes in Aggregate Demand
Understanding The Business Cycle:
Macroeconomic Equilibrium
Aggregate Demand Fluctuations
Inflationary and Recessionary Gaps
Aggregate Supply Fluctuations
Stagflation
13
1st December
pp.326-328
pp.329-330
14
Aggregate Expenditure Multiplier:
Students should know the aggregate demand basics
and what factors affecting aggregate demand see
pages:
pp.332-33
pp.334-336
p.338
p.339
p.340
p.341
p.342
Students should know how real GDP influences
expenditure plans; how real GDP adjusts to achieve
equilibrium expenditure ;and the expenditure multiplier
process
Pages:
pp.352-353
pp.358-361
pp.364-366
Consumption Function
Equilibrium Expenditure
Expenditure Multipliers
14
8st December
16
Fiscal Policy:
The Government Budget; Budget
Surplus &Deficit
The Demand Side :Stabilizing Real
GDP:
Fiscal Policy and Aggregate Demand
5
Students should know the demand side &the supply
side effects of the fiscal policy
pp.400-402
pp.406-408
15
16
15st December
16
22nd December
The Supply Side: Potential GDP and
Growth:
Fiscal Policy, Employment ,and
Potential GDP
Fiscal Policy, and Potential GDP: A
Graphical Analysis
Taxes , Deficit s, and Economic
Growth
Combined Demand Side and Supply
Side
pp.412-413
pp.414-415
p.415
pp.418-419
Revision
The last day to deliver the homework
file is Tuesday (24/12/2013)
Date means the beginning of the week.
Learning Outcomes
Students when complete the course should be able :
1. to think critically and be able to apply economic reasoning in making personal &business decisions and in analyzing
economic conditions & policies.
2. to identify and discuss economic issues facing the country & the world.
3. to explain the causes and effects of inflation ,unemployment.
4. to explain the differences in economic growth rate between countries and the sources of business cycles fluctuations.
5. to know the tools of the economic policies ; fiscal & monetary policies and their role in stabilizing the economy and
promoting long run growth.
6. to use graphs & simple Algebra to express relationships among macroeconomic variables and measure them.
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Delivery Methods:
This course is delivered in the form of lectures by PowerPoint presentations accompanied (sometimes) by handouts. Most
important issues within each concept and/or topic are clarified through discussions and class participation.
Modern Technology of Teaching:
1. Using video presentations on current issues related to the subject
2. Using economic websites to collect data about macro variables and to know the recent macroeconomic issues and
problems that people face.
Homework Appointments:
Each homework with date of delivery shall be put on the instructor's website after the completion of the chapter.
Instructions for the Homework:
1. Students must deliver each homework in the assigned time.
2. Homework will be returning to the students after registering them.
3. Students must keep the homework until the end of the semester to deliver them in a file.
4. The last day to deliver the homework file is Tuesday 21/2/1435 (24/12/2013)
Rules and Policies: For Attendance
 Students must attend 75% of the classes. If the absence without acceptable excuses exceeds 25% of the classes, students
will be forbidden from entering the final exam.
 Students who come late will be allowed to attend the class, but no attendance for them, they will be considered absent.
Appointments for the Tests:
 1st Test: 3/1/1435 (6/11/2013)
 2ndTest: 8/2/1435 (11/12/2013)
 Final Exams Begin: 26 /2/ 1435 (28 /12 /2013) and ends 15/3 /1435 (16/1/2014)
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Grading System
Homework ,Attendance and Participation
10%
1st Exam
25%
2nd Exam
25%
Final Exam
40%
Total
100%
Rules Concerning Cheating:
If the student cheats, in test 1 or test 2 ,she will take "zero" in the test but she will be allowed to enter the final exam. But if
the student cheats in the final exam, then she will get “F” and will not be allowed to register in the next semester.
1. No makeup exams.
2. Students, who miss any of the two exams, will be allowed to enter a comprehensive exam at the end of the term.
3. Mobiles, , cameras, other electronic devices or wearing "abaya" are NOT allowed in the examination room.
4. Talking together, cheating or communicate by anyway are forbidden during the exam.
Philosophy of Teaching:
1. “Education is a mean of progress and prosperity ,it isn't an end in itself.”
2. Connecting theories with reality is the best way to understand Economics.
“WISH YOU ALL THE BEST”
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Academic Advising
Academic Advising
Introduction & Revision
Introduction & Revision
The Circular Flows
The Circular Flows
GDP Defined
GDP Defined
GDP Defined
Measuring GDP
Measuring GDP: Expenditure Approach
Measuring GDP: Expenditure Approach
Measuring GDP: Expenditure Approach
Income Approach
Approach Expenditure Approach Approach Expenditure
Expenditure
Income
Approach
Expenditure Approach
Approach
Related
Measures
Related Measures
Uses & Limitations
Measures
Jobs & Unemployment
Uses & Limitations
Jobs Unemployment
measuresMeasures
Jobs Unemployment
Types of Unemployment
Types of Unemployment
Types of Unemployment
Natural Rate of Unemployment
Growth
Economic
Uses&Limitations
Economic Growth
fLimitations
Economic Growth
Sources of Economic Growth
Sources of Economic Growth
Aggregate Supply and Aggregate Demand
Aggregate Supply and Aggregate Demand
Aggregate Supply and Aggregate Demand
Aggregate Supply and Aggregate Demand
Understanding The Business Cycle:
Macroeconomic Equilibrium -Inflationary &Recessionary Gaps Recessionary
Aggregate Expenditure Multiplier : the Consumption Function
Gaps
Equilibrium Expenditure
Expenditure Multipliers
Fiscal Policy: The Government Budget; Budget Surplus &Deficit
A The Demand Side :Stabilizing Real GDP
Fiscal Policy & AD
The Supply Side: Potential GDP and Growth: Fiscal Policy, Employment
,and
s, and Economic Growth
, Deficit GDP
TaxesPotential
Combined Demand Side and Supply Side
Revision
Revision &The last day to deliver the homework file (24/12/2013
Revision
9
1st &2nd
3ed
4th
5th
6th
7th
8th
9th
10th
11th
12th
13th
14th
15th
16th
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