Download Eco 202 Course Outline for 2015-2016

UNIVERSITY OF CAPE COAST
DEPARTMENT OF ECONOMICS
ELEMENTS OF ECONOMICS II (ECO 202)
SECOND SEMESTER 2015/2016
CREDIT HOURS: 3
COURSE DESCRIPTION
This course in macroeconomics analyses the aggregate economic activity in the national
economy and its link with the rest of the world. Emphasis is placed on basic principles
involved in the determination of the level of national output, the aggregate price level,
money supply, exchange rate, fiscal and the monetary policies. It further provides a broad
understanding of economic growth and its implications for the economy.
The main goal of the course is to provide students with a basic understanding of the broad
macroeconomic issues concerning the economy and to enable them to understand and
analyze the national economy and to prepare them for further study of macroeconomics.
It further tries to raise and sustain a level of interest in macroeconomics amongst the
students.
COURSE OBJECTIVE
 To introduce students to the essential elements needed to understand the
basic workings of the Macroeconomy, specific economic issues, and
policy alternatives.
 To help the student formulate and apply the economic perspective and to
reason accurately and objectively about economic matters.
 To promote a lasting student interest in the study of economics.
COURSE CONTENT
 Revision of Keynesian Economics
 Introduction to Theories of Consumption
a) Absolute Income Hypothesis
b) Relative Income Hypothesis
c) Permanent Income Hypothesis
d) Life Cycle Hypothesis
 Saving and Wealth
 Saving and Investment Identity
 Investment Theory
a) Investment Demand
b) Accelerator theory of Investment
 Demand for and Supply of Money
 Introduction to the IS-LM Framework
 Fiscal Policy
a. Government budgets
b. Fiscal policy multipliers
c. Fiscal policy multipliers and price level
d. Fiscal policy and aggregate supply
 Monetary Policy
a. The Reserve Banks
b. Monetary policy tools
c. Controlling money supply
d. Monetary policy and interest rates
 Introduction to Inflation, Productivity and Phillips Curve
 The Exchange Rate and the Balance of Payments
a. Foreign exchange markets
b. Flexible exchange rates
c. Fixed exchange rates
d. Monetary policy, fiscal policy and the exchange rate
e. Exchange rates, prices and interest rates
f. Financing international trade
g. The current account and capital account
MODE OF ASSESSMENT
1. Two quizzes (30%)
2. One project work (10%)
3. One End-of-Semester exam (60%).
ACADEMIC INTEGRITY
Please make yourself familiar with the University's policy on plagiarism and cheating and
examination impersonation. Plagiarism or any other form of cheating in examinations or
quizzes is subject to serious academic penalty.
Students will not be permitted to write make-up quizzes or hand in assignments late,
except for documented medical or compassionate reasons. Failure to take a quiz or
assignment without express permission will lead to the award of a mark of zero.
READING LIST
1. King, David (2012). Economics. New York: Oxford University Press Inc.
2. Hubbard, G.R., Obrien, A.P. & Rafferty, M. (2012). Macroeconomics. PrenticeHall, New Jersey
3. Lipsey, G. and Chrystal, A. (2011). Economics, 12th Edition. New York: Oxford
University Press Inc.
4. Sloman, J. and Wride, A. (2009). Economics. 7th Ed. Pearson Education Ltd,
Edinburgh.
5. Lipsey, G. and Chrystal, A. (2007). Economics, 11th Edition. New York: Oxford
University Press Inc.
6. Froyen, F.T. (2005). Macroeconomics: Theories and Policies. 8th Ed. Prentice
Hall, New Jersey
7. Lipsey, G. and Chrystal, A. (2004). Economics, 10th Edition. Oxford, New York.
8. Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in Action.
Upper Saddle River: Pearson Prentice Hall.
9. McConnell, C. and Brue, S. (2002). Economics: principles, Problems and Polices.
New York: McGraw-Hill Higher Education.
10. Vaish, M.C. (2002). Macroeconomic Theory, 12th Rev. Ed. Vikas Publishing
House Ltd. New Delhi.
11. Mankiw, G. (1998), Principles of Macroeconomics. 2nd Edition. Harcourt
Publishers.
12. Parkin, M. and Bade, R. (1995). Modern Macroeconomics. 4th Ed. Prentice-Hall,
inc. New Jersey.
13. Abel, A. and Bernanke, B. (1994). Macroeconomics, 2nd Edition.Adison-Wesley
Inc., New York.
14. Hardwick, P., Khan, B. and Langmead, J. (1994). An Introduction to Modern
Economics. 4th Edition, Adison Wesley, New York.
15. Baumol, W. & Blinder, A. (1991) Macroeconomics: principles and policy. 5th
San Diego: Harcourt Brace Jovanovich.