Kuwait University Dr - CBA

Kuwait University Dr - CBA Economics 111 - Spring Semester 2013/2014 1 Department of Economics College of Business Administration - Kuwait University ECONOMICS 111 (PRINCIPLES OF MACROECONOMICS) COURSE OUTLINE (SYLLABUS) SPRING SEMESTER 2013/2014 Professor Yousuf Hasan Jawad Garashi Lecture (111 /55) Days & Time: Sun, Tue & Thu. 11:00 am Room 303 Lecture (111/51) Days & Time: Sun, Tue & Thu. 1:00 pm Room 314 Office Hours: Sun, Tue & Thu; Time: 12:00 noon – 1:00 pm & by appointment. Place: My Office - Economics Department – College of Business - Shuwaikh Telephone: Secretary 2498-8425 & 2498-8426 Direct (Office): 2498-8428 Email: q8yousuf@gmail.com Website: www.cba.edu.kw/yousuf Exams Dates and Grade Distribution Category Weight Date Midterm Exam (1) 20% Sunday 16/3/2014 (11:00 am or 1:00 pm) Midterm Exam (2) 20% Sunday 27/4/2014 (11:00 am or 1:00 pm) Final Exam 50% Monday 19/5/2014 (11:00 am – 1:00 pm ) Other Activities 10% Weekly Assignments & Quizzes Total 100% TUTORIAL CLASSES - Teaching Assistant: Mr/Mrs. - Days: (111/51) ______day Time: 00:00 -- 00:00 Room: 000 - Days: (111/55) ______day Time: 00:00 -- 00:00 Room: 000 - Attendance is critical for understanding the material. - Absence in tutorial classes is discouraged. REQUIRED TEXTBOOK “Economics,” McConnell, Brue & Flynn, Global Edition, McGraw-Hill Company, 2012. COURSE OBJECTIVE "Principles of macroeconomics" is an introductory course in economic theory. It is designed to introduce undergraduate students to the fundamental concepts of macroeconomic analysis, i.e., the study of the economic aggregates such as the Gross Domestic Product (GDP), aggregate consumption, saving, investment...etc. Also, macroeconomic models of income determination such as the Keynesian model and the aggregate demand and supply will be presented. By the end of the course, students should demonstrate an understanding of the tools of macroeconomic analysis. Specifically, this course provides students with general background and analytical tools pertaining to: Economics 111 - Spring Semester 2013/2014 2 Department of Economics College of Business Administration - Kuwait University 1. The definition of economics, the economic problem, economic systems, opportunity cost and production possibilities frontier and the circular flow of income. 2. Measuring domestic income in an economy using different approaches and in both nominal and real terms. 3. The concepts of economic growth, business cycles, unemployment and inflation. 4. The aggregate expenditures (Keynesian) model and equilibrium GDP. 5. Aggregate demand and supply analysis and equilibrium real output and prices. 6. Fiscal Policy and the public debt. 7. Money & banking and money creation. 8. Interest rates and monetary policy actions. Course Content and Readings: Limits, Alternatives, and Choices (Chapter 1) , The Economic Perspective , Theories, Principles, and Models , Macroeconomics and Microeconomics , Individual’s Economizing Problem , Society's Economizing Problem , Production Possibilities Model , Unemployment, Growth, and the Future The Market System and the Circular Flow (Chapter 2) , Economic Systems , Characteristics of the Market System , Five Fundamental Questions , The Invisible Hand , The Demise of the Command System , The Circular Flow Model An Introduction to Macroeconomics (Chapter 26) , Performance and Policy , The Miracle of Modern Economic Growth , Uncertainty, Expectations, and Shocks , How Sticky are Prices? , Categorizing Macroeconomic Models Using Price Stickiness Measuring Domestic Output and National Income (Chapter 27) , Assessing the Economy's Performance , Gross Domestic Product (GDP) , The Expenditures Approach , The Income Approach , Other National Accounts , Nominal GDP versus Real GDP , Shortcomings of GDP Economic Growth (Chapter 28) , Economic Growth , Modern Economic Growth , Institutional Structures that Promote Growth , Determinants of Growth , Production Possibilities Analysis , Accounting for Growth , The Rise in the Average Rate of Productivity Growth , Is Growth Desirable and Sustainable? Economics 111 - Spring Semester 2013/2014 3 Department of Economics College of Business Administration - Kuwait University Business Cycles, Unemployment, and Inflation (Chapter 29) , The Business Cycle , Unemployment , Inflation , Redistribution Effects of Inflation , Does Inflation Affect Output? Basic Macroeconomic Relationships (Chapter 30) , The Income-Consumption and Income-saving Relationships , The Interest-Rate-Investment Relationship , The Multiplier Effect The Aggregate Expenditures Model (Chapter 31) , Assumptions and Simplifications , Consumption and Investment Schedules , Equilibrium GDP: C + Ig = GDP , Other Features of Equilibrium GDP , Changes in Equilibrium GDP and the Multiplier , Adding International Trade , Adding the Public Sector , Equilibrium versus Full-Employment GDP Aggregate Demand and Aggregate Supply (Chapter 32) , Aggregate Demand , Changes in Aggregate Demand , Aggregate Supply , Changes in Aggregate Supply , Equilibrium and Changes in Equilibrium Fiscal Policy, Deficits, and Debt (Chapter 33) , Fiscal policy and the AD-AS Model , Built-in Stability , Evaluating Fiscal Policy , Problems, Criticisms, and Complications , The Public Debt , False Concerns , Substantive Issues Money, Banking, and Financial Institutions (Chapter 34) , The Functions of Money , The Components of the Money Supply , What "Backs" the Money Supply? , The Federal Reserve and the Banking System , The Financial Crisis of 2007 and 2008 Money Creation (Chapter 35) , The Fractional Reserve System , A Single Commercial Bank , Money-Creating Transactions of a Commercial Bank , The Banking System: Multiple-Deposit Expansion Economics 111 - Spring Semester 2013/2014 4 Department of Economics College of Business Administration - Kuwait University Interest Rates and Monetary Policy (Chapter 36) , Interest Rates , The Consolidated Balance Sheet of the Federal Reserve Banks , Tools of Monetary Policy , Targeting the Federal Funds Rate , Monetary Policy, Real GDP, and the Price Level , Monetary Policy: Evaluation and Issues , The "Big Picture" Grading Scale A A- B+ B B- C+ C C- D+ D F 95 + 90 –87 – 83.5 – 80 – 77 – 73.5 – 70 – 65 – 60 – < 60 94.5 89.5 86.5 83 79.5 76.5 73 69.5 64.5 Note: Dr. Mohammed El-Sakka's website "; contains useful information. GENERAL INFORMATION - Absenteeism: First warning comes after 3hrs absences and a second warning after additional 3 hrs. An F grade is posted for students absent beyond the six hours. Also, students lose bonus marks accordingly. Tardiness is not tolerated. Students must be on time for lecture. Late students - will be warned and subsequently not allowed in classroom. - Make up exam are granted only in cases of absence due to serious illness or circumstances. Appropriate documents must be presented. - Plagiarism and cheating is punishable by an F grade and are reported to university administration for appropriate action. - Mobile Phones must be in silent mode during the lecture. Violators are dismissed. Economics 111 - Spring Semester 2013/2014 5 Department of Economics College of Business Administration - Kuwait University Tentative Time Plan for Course Material ChapterTopics Time (Weeks) st1 week ( ) Introduction to Economics and the Economy nd2 week ( ) Measuring Domestic Output and National Income rd3 week ( ) Introduction to Economic Growth and Instability thth4 & 5 week ( ) Basic Macroeconomic Relationships thth6 & 7 week ( ) The Aggregate Expenditures Model Midterm Exam 1 ( ) Sunday 16 / 3 / 2014 11:00 am or 1:00 pm th8 week ( ) Aggregate Demand and Aggregate Supply thth9 & 10 week ( ) Fiscal Policy, Deficits, and Debt th11 week ( ) Money and Banking th12 week ( ) Money Creation thth13 & 14 week ( ) Interest Rates and Monetary Policy Midterm Exam 2 ( ) Sunday 27 / 4 / 2014 11:00 am or 1:00 pm th15 week Summarize and review for final exam Final Exam ( ) Monday 19 / 5 / 2014 11:00 am (Comprehensive)