MACROECONOMICS (ECON 202)

AIM

This course aims to give students a wider range of macroeconomic issues by using theory or models which can be applied to the real world, society, and business. There are three main goals. First, students will be able to discuss the basic measurement of national accounts in both close and open economies, inflation, unemployment, and economic performance. Second, students will be able to understand and analyze the concepts of developing economies and growth, Macroeconomic policies, and Labor markets. Third, students will be able to apply the theory and understanding to real world issues.

  • COURSE DESCRIPTION
  • ROLE IN CURRICULUM
  • LEARNING OUTCOMES
  • STUDY PLAN
  • TEACHING METHODS
  • ASSESSMENT AND GRADING
  • TEXTBOOKS AND REFERENCES

COURSE DESCRIPTION

Macroeconomics is a foundation subject of Business Administration, Accounting, Economics, Banking, Finance, Marketing which deals with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. This course aims to introduce the students to the concepts of economic structure, long-run macroeconomic performance, business cycles and environment and institutions of macroeconomic policy that influence the business performance and activities.

Credits: 3

Lecture Hours: 57 

Self-Study Hours: 90

  • Reading: 84 (252 pages of technical reading)      
  • Review: 24
  • Assignment: 21
  •                       129

Total Study Hours: 186

ROLE IN CURRICULUM

 

Prerequisites

There are no prerequisites for this course. However, students will benefit from a basic understanding of Statistics and Microeconomics.

 

 

LEARNING OUTCOMES

The learning outcomes for this course cover four main points: economic structure, long-run macroeconomic performance, business cycles and environment and institutions of macroeconomic policy. On successful completion of this course, students will be able to:

1.  Knowledge

Level of Learning PLO CLO Learning Outcome
Understand PK1 CK1 Explain GDP by income, value added, and expenditure approach and the basic concept of budget deficit and source of financing.
Understand PK1 CK2 Describe the basic concepts of consumption, savings, investment in closed and open economies and how they affect international finance and the balance of payments.
Understand PK1 CK3 Explain the sources of economic growth in the long-run and the effects of government fiscal and monetary policies.

2.  Cognitive Skills

Level of Learning PLO CLO Learning Outcome
Apply PC1 CC1 Explain the approach of production including impacts of changing in the labor market, and productivity.
Analyze PC1 CC1 Analyze the economic policies on business cycle from the effects of government policies and economics events on domestics and foreign economy.
Analyze PC1 CC2 Analyze the structure and functioning of the government spending base on The Keynesian multiplier, fiscal policy, and monetary policy.
Analyze PC6 CC3 Analyze the structure and functioning of government spending based on The Keynesian multiplier, fiscal policy, and monetary policy.

3.  Communication, Information Technology, and Numerical Skills

Level of Learning PLO CLO Learning Outcome
Analyze PCIT2 CCIT1 Analyze the communication of economics data by using excel and other software

4.   Interpersonal Skills and Responsibilities

Level of Learning PLO CLO Learning Outcome
Apply PIP2 CIP1 Work in a team to conduct and report research.

STUDY PLAN

The course targets the 38 lessons in the study plan below. Each lesson is 1.5 class hours each; there are a total of 57 class hours. The study plan below describes the learning outcome for each lesson, described in terms of what the student should be able to do at the end of the lesson. Readings should be done by students as preparation before the start of each class. Implementation of this study plan may vary somewhat depending on the progress and needs of students.

No  Lesson Learning Outcomes Teaching and Learning Activities, Assessment
 1

Introduction

  1. Describe the Issues in Macroeconomics
  2. Activities in Macroeconomics (All CC)
 Lecture Demonstration of graph Reading: Chapter 1 pp: 1-7
2

Measuring Economy: GDP

  1. Explain the concepts of the three approaches of National income account (CK1)
  2. Demonstrate on production, income, and expenditure approach (CC2, CCIT1)
 Lecture Calculation and Practice Quiz 1 Reading: Chapter 2 pp: 22-33
3

Measuring Economy: GDP        3. Analyze expenditure approach (CC2, CCIT1) Savings and Wealth

  1. Discuss the concept and formula of Aggregate Saving (CK3)
 Lecture Demonstration equations Practice Reading: Chapter 2 pp: 34-40
4

Savings and Wealth

  1. Illustrate the use of private saving (CK3)
  2. Demonstrate saving rate and wealth

     Nominal GDP 

  1. Apply of Nominal GDP with calculation (CC2, and CCIT1)
 Lecture Demonstration equations Practice Reading: Chapter 2 pp: 41-42
5

Nominal GDP and Real GDP      2. Apply of Real GDP with calculation (CC2, and CCIT1) GDP Deflator

  1. Solve for GDP deflator (CC2, CCIT1)
  2. Extend the use of GDP deflator (CC2)
 Lecture Calculation Practice Reading: Chapter 2 pp: 42-44
6

Price index and inflation rate

  1. Summarize the Price Index (CC2)
  2. Demonstrate on Cost of Basket and CPI Calculation (CC2, CCIT1)
Lecture Calculation Practice Quiz 2 Reading: Chapter 2 pp: 45-49
7

Production Function

  1. Demonstrate on Production function properties (CK2 and CC1)
  2. Discuss on Factors used for production (CK2)
  3. Shape of production function (CK2 and CC1)
 Lecture Discussion Demonstration of equation and function Practice Reading: Chapter 3 pp: 61-65
8

Supply Shock and Productivity

  1. Demonstrate on supply shock (CK2 and CC1)
  2. Demonstrate on derivative function of MPK from Production function (CK2 and CC1)
  3. Demonstrate on derivative function of MPN from Production function (CK2 and CC1)
 Lecture Discussion Demonstration of equation and function Practice Reading: Chapter 3 pp: 66-70
9

Demand for Labor

  1. Compare Labor demand and Real wage and determinants (CK2 and CC1)
  2. Factor shifting labor demand
 Lecture Discussion Demonstration of equation and function Practice Reading: Chapter 3 pp: 71-78
10

Supply for Labor

  1. Income-Leisure Trade-off (CK2)
  2. Wage and labor supply (CK2 and CC1)
  3. Labor supply curve (CK2 and CC1)
  4. Factors change in labor supply (CK2 and CC1)
 Lecture Graphing Practice Quiz 3 Reading: Chapter 3 pp: 79-84
11

Labor Market Equilibrium and Employment

  1. Illustrate labor market equilibrium (CK2)
  2. Adverse supply shock(CK2 and CC1)
  3. Illustrate market equilibrium, employment and potential output (CC2)
 Lecture Graphing Practice Reading: Chapter 3 pp: 76-86
12

Unemployment

  1. Demonstrate on Unemployment and minimum wage
  2. Discuss the types of unemployment (CC2)
  3. Calculate an unemployment rate (CC2)
 Lecture Discussion Practice Reading: Chapter 3 pp: 86-92
13

Consumption, Savings of Individual

  1. Demonstrate on the 7 factors affecting the desired consumption and saving; and its effect (CK3)
  2. Effect of Changes in the Real interest rate (CK4)
 Lecture Discussion Quiz 4 Reading: Chapter 4 pp: 109-123
14

Investment 

  1. Investment and MPK
  2. Demonstrate on the three factors affecting desired Investment (CK3)
 Lecture Practice Reading: Chapter 4 pp: 125-135
15

 Savings and Investment (Closed Economy)

  1. Good market equilibrium
  2. Demonstrate on saving and investment affecting the equilibrium real interest rate in closed economy (CK3)
 Lecture Practice Reading: Chapter 4 pp: 138-143
16

 Balance of Payment

  1. Overview of Balance of Payment
  2. Illustrate the determination of domestic real interest rate in both small open economy(CK3)
 Lecture Quiz 5 Reading: Chapter 5 pp: 173-188
17

Savings and Investment (Open Economy)

  1. Illustrate the determination of domestic real interest rate in both small and large economy(CK3)
  2. Illustrate the determination of domestic real interest rate in both small and large economy(CK3)
 Lecture Dicussion Reading: Chapter 5 pp: 182-190
18

Long-Run Economic Growth and The Solow Model

  1. Demonstrate on the three sources of GDP growth (CK4)
  2. Slowdown of Productivity growth (CK4)
 Lecture Practice Reading: Chapter 6 pp: 208-216
19

Long-Run Living Standard and Gov. Policies

  1. Long-run Growth: Solow model (CK4)
  2. Discuss on Cambodian growth
 Lecture Discussion Reading: Chapter 6 pp: 217-229
20

Money, Demand for Assets

  1. Discuss on types and role of money in the market (CK5)
  2. Applying function of money in Cambodia situation (CK5)
 Lecture. Discussion Quiz 6 Reading: Chapter 7 pp: 243-251
21

Demand for Money

  1. Discuss the factors that affect how people choosewhich assets they own (CK5)
  2. Apply Money Demand function (CK5)
 Lecture Discussion Reading: Chapter 7 pp: 255-259
22

Demand for Money

  1. Illustrate the Velocity and Quantity Theory of Money (CK5)

Asset Market Equilibrium

  1. Discuss the fundamental of market equilibrium (CK5)
  2. Demonstrate on inflation and money supply (CK5)
 Lecture Practice Reading: Chapter 7 pp: 260-270
23

Business Cycle

  1. What is the business cycle?
  2. Business Cycle and economic variable
  3. Aggregate Demand
 Lecture Discussion Reading: Chapter 8 pp: 279-303
24

Business Cycle

  1. Aggregate supply
  2. AD-AS Model
 Lecture Discussion Reading: Chapter 8 pp: 308-310
25

FE line and IS Curve

  1. Demonstrate of factors affecting full-employment output and good market clearing (CC2, CC3)
  2. Demonstrate of factors affecting saving and investment in good market clearing (CK3, CC2)
 Lecture Practice Reading: Chapter 9 pp: 315-321
26

LM Curve

  1. Demonstrate of factors affecting money supply and money demand in asset market clearing (CK3, CC2)
 Lecture Practice Reading: Chapter 9 pp: 321-328
27

General Equilibrium IS-LM Model

  1. Demonstrate of factors affecting money supply and money demand in asset market clearing (CK3, CC2)
 Lecture Practice Reading: Chapter 9 pp: 329-331
28

General Equilibrium IS-LM Model

  1. Demonstrate on conditions necessary for general equilibrium using IS-LM Model (CK3, CC2)
  2. Discuss on effect of monetary expansion on general equilibrium (CK3, CC2)
 Lecture Practice Reading: Chapter 9 pp: 334-347
29

Wage and Price Rigidity

  1. Illustrate Keynesian real wage rigidity and Price stickiness (CC2, CC3)
  2. Discuss on wage efficiency model (CC2, CC3)
  3. Effective labor demand
 Lecture Discussion Quiz 8 Reading: Chapter 11 pp: 407-419
30 Monetary and Fiscal Policy in Keynesian Model      4. Illustrate Keynesian Monetary Policy (CC2, CC3)      5. Illustrate Keynesian Fiscal Policy (CC2, CC3) Lecture Discussion Quiz 8 Reading: Chapter 11 pp: 420-426
31

Keynesian Theory of Business Cycle and Macroeconomic stabilization

  1. Keynesian Business cycle theory (CC2, CC3)
  2. Demonstrate on Monetary and Fiscal Policy as Macroeconomic stabilization theory (CC3)
 Lecture Practice Reading: Chapter 11 pp: 427-433
32

Unemployment and Inflation

  1. Discussion on Phillips curve relationship between  unemployment and inflation (CC2)
  2. Summarize an Expectation-Augmented Phillips Curve (CC3)
 Lecture Discussion Reading: Chapter 12 pp: 450-456
33

Problem of unemployment and inflation

  1. Identify Long-term behavior of the unemployment rate (CC2)
  2. Conclude the Cost of inflation (CC2)
 Lecture Quiz 9 Reading: Chapter 12 pp: 461-466
34

Nominal and Real Exchange Rates

  1. Demonstrate on how to determine exchange rate (CK5, CCIT1)
  2. Apply Nominal and real exchange rates in framework of demand and supply (CK5, CCIT1)
 Lecture Practice Reading: Chapter 13 pp: 481-487
35

Determination of Exchange Rates and Net Exports

  1. Discuss on the relationship between exchange rates and international trade (CK5, CC1)
 Lecture Discussion Reading: Chapter 13 pp: 488-501
36

Economic Policy and Exchange Rates

  1. Macroeconomic policy in open economy with flexible exchange rate (CK5, CC3)
 Lecture Practice Reading: Chapter 13 pp: 502-508
37

Fixed Exchange Rates

  1. Demonstrate on how does use of a fixed-exchange system affect an economy (CK5, CC3)
 Lecture Discussion Quiz 10 Reading: Chapter 13 pp: 508-514
38

Government Spending and Taxation

  1. Discuss how how the government spending, taxing (CC2, CC3)
  2. Analyze how fiscal policy affecting aggregate demand (CC2, CC3)
  3. Explain automatic stabilizer (CC2, CC3)
  4. Discuss on Cambodian government budget (CC2, CC3)
 Lecture Discussion Reading: Chapter 15 pp: 586-589
Total Hours : 57 hours

TEACHING METHODS

This course is basically a mixed lecturer and student center. The students are provided lectures, in-class exercises, homework, and assignments. They are assigned to read the textbook and other references to read in order to support their learning. During class, approximately two-third of the class will be devoted to lecture with the rest of the class for discussion, exercises, and question-answer.

ASSESSMENT AND GRADING

Grades will be determined based on a grading score, calculated using the following assessments and score allocations:

Assessment Weight of each assessment Learning Outcome Assessed
CLO PLO
Participation 10% All 4.1, All 4.2, All 4.3 PK1-3, PC1,PC6,PCIT1-2
In-class tests 20% All 4.1, All 4.2, All 4.3 PK1-3, PC1,PC6,PCIT1-2
Homework 10% All 4.1, All 4.2, All 4.3 PK1-3, PC1,PC6, PCIT1-2
Research Paper Assignments 20% All PK1-3, PC1,PC6, PCIT1-2, PIP2
Midterm exam 20% CK1-4, CC1-2,CCIT1 PK1-3, PC1,PCIT1
Final exam 20% All PK1-3, PC1,PC6,PCIT1-2,PIP2
Total grading score 100%  

During the term, there will be one assignment:

Assignment – Sector Growth Analysis

Work Group: Group
Output format: APA Format Report
Language: English
Assignment: The assignment requires group of students to research and evaluate and/or estimate growth of an economic sector in Cambodia on movement of labor, capital, and goods and services from/to Cambodia to/from other nation. This is desk research which requires linear regression.

 

TEXTBOOKS AND REFERENCES

Textbook

  1. Abel, Bernanke and Croushore, Macroeconomics, 8th Ed., (2014), Global Edition., Pearson. (ISBN-13: 978-0-273-79230-7 • ISBN-10: 0-273-79230-X).

References

  1. N.Gregory Mankiw, Macroeconomics, 7th Ed.,(2010), Worth Publishers. (ISBN-13: 978-1-4292-1887-0 • ISBN-10: 1-4292-1887-8).
  2. Selected articles from The Phnom Penh Post and The Cambodia Daily newspapers.

Education Resources