Download Oman College of Management and Technology Department of

Oman College of Management and Technology
Department of Administrative and Financial Sciences
First Semester 2015/2016
_____________________________________________________________________
Principles of Macroeconomics
Instructor: Prof.Dr.Waleed Hmedat
Course Description: this course introduces the economic problem, and the
production possibility frontier. In addition to that it investigates the methods of
national income and other economic aggregates measurement. Demand and supply
and market equilibrium are covered. Then it discusses various components of
aggregate expenditures and constructs a Keynesian model to determine equilibrium
level of national income. In this context it analyzes spending multipliers and the
impact of fiscal policy on equilibrium income. Furthermore, it considers the definition
of money and its functions and how it is created. The role of central bank in money
supply control is considered too. Finally tools of aggregate demand and aggregate
supply are derived and used to understand the impact of macroeconomic policies on
major economic aggregates. Then concepts of growth, unemployment, inflation and
business cycles are reviewed.
Course Objectives: this course aims at the following goals:
1. Familiarizing the student with the subject matter of economics.
2. Introducing basic economic vocabulary, terms, concepts, tools and simple
models of macroeconomics.
3. Presenting the economic way of thinking and analyzing economic problems and
the relevance of the real world.
4. Preparing the student to understand more sophisticated economic issues and to
answer raised questions in a systematic way.
Student Learning Outcomes:
1. Identify the concepts of scarcity, choices, opportunity costs, and economic
efficiency.
2. Distinguish between macroeconomics and microeconomics, positive and
normative statements, economic theory and economic policy.
3. Identify and distinguish the major factors (conditions) that affect supply and
demand. And identify the equilibrium price and quantity exchanged on a supply
and demand diagrams.
4. Utilize supply and demand analysis to correctly predict the direction of changes
in price and quantity (volume) as a result in changes in market factors
(conditions).
5. Understand the basic national income identity and how it is used to understand
the various methods of national income accounting.
1
6. Understand the determinants of aggregate expenditures components.
7. Model the macro economy and determine the equilibrium of national income.
8. Define money and specify its functions. Specify measures of liquidity and tools
of money supply control and determinants of money demand, and determine
equilibrium interest rate.
9. Define aggregate demand and aggregate supply and determine factors affecting
them in the short and long runs. And determine macroeconomic equilibrium.
Use these tools to conduct and predict the impact of fiscal and monetary
policies.
10. Understand the meaning of unemployment and its types and scale in the
Jordanian economy.
11. Define inflation, causes and consequences and trends in Jordanian economy.
12. Understand the meaning of business cycles and their phases.
Course Requirements:
1.
2.
3.
4.
Attendance.
Read all assignments.
Participation in the classroom.
Examinations.
Method of Evaluation: your performance in this class will be evaluated in several
ways:
 Two midterm exams worth 50% of total grade
 Final exam worth 50% of total grade
Required Textbook:
Michael Parkin, Macroeconomics, Seventh edition,
Pearson, Addison Wesley 2005.
Teaching Philosophy:
Our goal is to push you academically to stimulate critical
thinking, by making you think how you view the world and
integrating this into your perspective, and therefore we expect
you to work hard, because sometimes the material is not easy. Simply: one learns
economics by doing economics. The best rule of thumb is to plan to devote three
hours outside of class to study this material for each hour you spend in class.
Important Notes:
1. You are responsible for all material discussed in class and assigned in the textbook.
2. Attendance is required. Your professor is far less sympathetic to those who miss
class regularly. If you miss class, you are responsible to get the notes from a
classmate.3. You may contact me at my office, email me, or write a note and mail it to
me if you need to contact me. Please do not call me at home. I will attempt to
respond to all e-mails within 72 hours -- and usually much sooner.
2
4. There are no make-up exams. 5. Please feel free to stop by my office if you have
questions, or just would like to talk. My policy is "If my office door is open, I am
open for business".
6. You are expected to be available each class, except when hardships occur. I have
the right either to lower your course grade or to give you an F grade if you have more
than5 absences.
8. Please turn of all cell phones and pagers prior to entering the classroom and be on
time. During exams all phones must be switched off.
9. You may use a calculator in the exam but you may not borrow it.
.
Successful Student Strategies:
1. Commitment to class attendance.
2. Reading text before class.
3. Asking questions, when material is unclear.
4. Reviewing notes, graphs and text after class.
5. Studying in advance of the next exam.
Course Outline:
Chapter 1
What is Economics
Week 1 & 2
Chapter 2
The economic problem
Week 2 & 3
Chapter 3
Demand and Supply
Week 3 & 4& 5
Chapter 5
Measuring GDP and Economic Growth
Week 6
Chapter 8 & 13 Expenditure Multipliers: The Keynsian Model
Week 7 & 8
Chapter 10
Money, Banks and Federal Reserve System
Week 9 &10
Chapter 11
Money, Interest, Real GDP and the Price Level Week 10 & 11
Chapter 7
Aggregate Supply and Aggregate Demand
Week 12
Chapter 4
A First Look at Macroeconomics
Week 13&14
Review
Week 15
Final Examinations
Week 16
3