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Course Description

Stacked coins with digital overlay of charts

This course is an analysis of open as well as closed economy models of aggregate spending, output, employment, prices and interest rates under alternative assumptions about the nature of labour, product and financial markets. The analysis of theories of consumption, investment and money demand.

Learning Outcomes

By the end of the course, the learner should be able to:

  • measure economic activity including Inflation, GDP, Economic Growth, Money Supply, Unemployment, Savings and Balance of Payments;
  • solve for both output and interest rates in the goods and financial markets and interpret expansionary and inflationary gaps;
  • determine wages, and find and interpret money multipliers;
  • demonstrate and interpret various economic models;
  • apply the content of the course to historical and current events such as the ongoing world financial crisis, and growth across different countries.
  • remember, recognize, and where necessary calculate GDP, price indices, growth (including the steady state in the Solow model), the real exchange rate, interest rates, money multipliers, Keynesian multipliers, balance of payments, budget balances, trade balances, debt and Ricardian equivalence, and the optimal inflation rate;
  • explain how the economy can experience recessionary and inflationary gaps using various models, and the tradeoff between inflation and unemployment;
  • Understand specific markets;
  • recall specific macroeconomic facts about the great depression;
  • understand and demonstrate Monetary, Fiscal, Structural and exchange rate policy.

Course Topics

  • Introduction
  • The Goods Market
  • The Financial Market
  • The IS-LM Model
  • Openness in Goods and Financial Markets (Part 1)
  • Openness in Goods and Financial Markets (Part 2)
  • Exchange Rate Regimes
  • The Labour Market
  • The Phillip’s Curve
  • The IS-LM-PC Model
  • The Facts of Growth
  • Savings, Capital Accumulation, and Output

Additional Requirements

Prerequisite(s): ECON*1100, (1 of IPS*1500, MATH*1030, MATH*1080, MATH*1200)


Grading Scheme with the Purchase of MyLab:

Assessment Item Weight
MyLab Quizzes (Best 4 of 5) 10%
Course Discussions (4) 15%
Midterm 25%
Online Final Exam 50%
Total 100%

Grading Scheme without the Purchase of MyLab:

Assessment Item Weight
Course Discussions (4) 15%
Midterm 30%
Online Final Exam 55%
Total 100%

Note: You must receive at least 50% on the final exam to pass this course. Your term work will only be included in calculating your final grade if you pass the final exam. If you receive less than 50% on the final exam, your final grade will be your final exam percentage.


Additional Technical Requirements

This course will use the following:

  • MyLab, a web-based tool created by Pearson Education. Visit their website to complete a check that ensures your computer meets the MyLab system requirements.

Please view the Technical Considerations for each.

Technical Requirements

You are responsible for ensuring that your computer system meets the necessary system requirements. Use the browser check tool to ensure your browser settings are compatible and up to date (results will be displayed in a new browser window).

*Course details are subject to change.


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