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Course content
Learning Outcome
By the end of the lecture series you should be able to:
Interpret the working of an economy by identifying macroeconomic
objectives and policies.
Compute
and
interpret
national
production,
income
and
expenditure. Understand different concepts of production approach
Interpret the working of aggregate and aggregate supply in
determining the price level. Understand the process of adjustment
in the short and long run.
Compute
and interpret consumption and savings and other
components of aggregate expenditure. Identify inflationary and
deflationary gaps. .
Interpret the use of fiscal and monetary policies. Money supply and
money demand and the conduct of monetary policy by the Central
bank.
Interpret trade theories and understand the balance of payments
and the exchange rate s .
Examine the determinants of inflation and unemployment.
Interpret economic growth and its determinants, and understand
the reasons for business cycles .
Microeconomics Vs
Macroeconomics
Introduction to Economics
Macroeconomic variables
Stock variable: stock of capital, money
supply
Flow variable: investment, depreciation
Introduction to Economics
Macroeconomic objectives
Macroeconomic policies
Monetary policy
Fiscal policy
Exchange rate policy
Employment (labor market) policy
Income distribution policy
International trade policy
What is Macroeconomics?
The income method measures the value of all the incomes earned in
the economy.
Regardless of the method used accounting will result in the same final
figure. National output, national income or national expenditure.
Unrecorded and under-recorded economic activityGDP values are undervalued because of hidden economic
activity.
External costs- GDP figures do not take into account the
costs of resource depletion.
Limitations of GDP