Download Kuwait University College of Business Administration Economics

Kuwait University
College of Business Administration
Economics Department
Macroeconomics
(ECON 111)
Dr. Nayef N. Al-Shammari
E-mail: [email protected]
Home Page: http://www.cba.edu.kw/alshammari
Office Hours: Monday & Wednesday
12:30 – 1:30 and by appointment
Course Objective:
Principles of macroeconomics is an introductory course in economic theory. It is designed to
introduce undergraduate students to the fundamental concepts of macroeconomic analysis, i.e.,
the study of the economic aggregates such as the aggregate demand and supply, gross domestic
product (GDP), aggregate consumption, saving, and investment…etc. By the end of the course,
students should demonstrate an understanding of the tools of macroeconomic analysis.
Specifically, this course provides students with general background and analytical tools
pertaining to:
1. The definition of economics, economic problem, economic systems, opportunity cost and
production possibilities frontier and the circular flow of income.
2. Measuring domestic income using different approaches in an economy in both nominal
and real terms.
3. The notions of economic growth, business cycles, unemployment and inflation.
4. The aggregate expenditures model and equilibrium GDP under different assumptions.
5. Aggregate demand and supply and equilibrium real output and prices.
6. Fiscal and monetary policy actions and the rule of the central bank and the banking
system.
7. International trade, exchange rates and the economics of developing countries.
Text Book
McConnell and Brue“ Economics“, 18th edition,
Evaluation System
Midterm # 1
Midterm # 2
Quizzes
Attendance
Final Exam
18.5%
18.5%
8%
5%
50 %
Attendance
Only two classes are allowed to be missed (without acceptable excuse), after that
one point is deducted for each one.
Course Outline
Chapter 1 : Introduction (Class Notes)
·
The economic perspective
·
Scarcity and Choices
·
Definition of Economics
Chapter 2: The Market System and the Circular Flow
· The circular flow model
(pp 3-39)
Chapter 24: Measuring Domestic Output, National Income and the Price Level.
· GDP
· The expenditures approach
· The Income approach
· Nominal GDP versus real GDP
· The consumer price index
· Shortcomings of GDP
(pp 479-493)
(Perspectives covered: environmental, political, and ethical perspectives)
Chapter 25 & 26 : Economic Growth Business Cycles, Unemployment and Instability
· Economic growth
· The business cycle
· Unemployment
· Inflation
(pp 498-536)
(Perspectives covered: Technological, environmental, social, legal and political perspectives)
Chapter 27: Basic Macroeconomic Relationships
· Consumption and saving
· Investment
· Equilibrium GDP
· Other features of equilibrium GDP
(pp 541-560)
(Perspectives covered: environmental perspective)
Chapter 28: Aggregate Expenditures Model
· Changes in equilibrium GDP and the multiplier
· International trade and equilibrium
· Adding the public sector
· Equilibrium versus full employment GDP
(pp 561-582)
(Perspectives covered: Global, Political and environmental perspectives)
Chapter 29: Aggregate Demand and Aggregate Supply
· Aggregate Demand
· Aggregate Supply
· Equilibrium GDP and the price level
· Changes in equilibrium
(pp 583-606)
(Perspectives covered: environmental perspective)
Chapter 30: Fiscal Policy Deficits and Debt
· Fiscal policy and the AD-AS model
· Built in stability
· Evaluating fiscal policy
(pp 607-620)
(Perspectives covered: Political and environmental perspective)
Chapter 31: Money Banking and Financial Institutions, Money Creation and Interest rates
and Monetary policy
· The functions of money
· The supply of money
· Consolidated sheet of commercial banks
· Tools of monetary policy
· Effectiveness of monetary policy
(pp 628-682)