ICB0003: MACROECONOMICS 1

1.1 Background and Rationale

This is a course in the principles of macroeconomics. This course seeks to

introduce you to the ways in which economists view the world and to teach
you to utilize these ways of thinking when you approach economic problems
and questions.

This course employs an active learning approach to the material. The

concept of active learning is simple: rather than the teacher presenting facts
to the students, the students play an active role in learning by exploring
issues and ideas under the guidance of the instructor. The primary method of
promoting active learning in this class is participatory experimentation. In
the lab, students participate in a market or social interaction and record the
results. At the next class meeting, the experimental results are discussed
and a theoretical explanation of events in the lab is offered.

1.2 Learning Outcomes

At the end of the course, students will be expected to:

(a) Understand the forces determining macroeconomic variables such as

inflation, unemployment, interest rates, and the exchange rate;

(b)Formulate and assess macroeconomic policy suggestions;

(c) Define macroeconomic terminology, such as the multiplier, monetarism,

the natural level of unemployment, and fiscal policy;

(d)Interpret and evaluate media reports on the macroeconomy.

1.3 Course Content

1.0 Introduction
The Market Forces of Supply and Demand
2.0 The Data of Macroeconomics
Measuring a Nation's Income
Measuring the Cost of Living
3.0 The Real Economy in the Long Run
Production and Growth
Saving, Investment, and the Financial System
Unemployment
4.0 Money and Prices in the Long Run
The Monetary System
Money Growth and Inflation
5.0 Short-Run Economic Fluctuations
Aggregate Demand and Aggregate Supply
1.4 Assessment

Continuous Assessment 20%

Research 30%
Final Examination 50%

1.5 Prescribed Textbook

1. Mankiw N. G. 2011. Principles of Economics 6th ed., McGraw

Hill.New York and London

1.6 Recommended Textbooks

1. Theodore C. B. and Miller J. H., .2000. Experiments with Economic

Principles: Microeconomics, 2nd edition, Irwin McGraw-Hill.
2. Miller R. L., Benjamin D. K., and North D. C., .2001. The Economics of
Public Issues, 12th edition, Addison Wesley Longman.

3. Krugman P. and Robyn W. 2013. Macroeconomics, Worth Publishers

4. Roger A. A. 2015. Macroeconomics, 12th Edition, South-Western
College Publishing, Textbook ISBN-978813305617421
5. Cowen T. and Tabarrok A. 2015. Modern Principles:
Macroeconomics, 2nd edition EconPortal
6. Gwartney, et al. 2014. Macroeconomics: Private and Public
Choice. Cengage Learning. ISBN: 9781285453545
7. Buchholz, Todd G., 2007. New Ideas from Dead Economists: An
Introduction to Modern Economic Thought, Revised ed. Plume.
8. Heilbroner, Robert L., 1999. The Worldly Philosophers: The Lives,
Times and Ideas of the Great Economic Thinkers, 7th Revised ed.
Touchstone.
9. Bernanke F. 2013. Principles of Macroeconomics, 6th edition,
McGraw- Hill Irwin.