Introduction to Macroeconomics

Course Description

The course introduces the concept a Circular Flow and proceeds to cover the basic concepts pertaining to National Income and its determinants, Gross Domestic Product, Aggregate Demand, Aggregate Supply, and macro-economic equilibrium. Given this framework, the course examines the impact of shocks to the equilibrium and analyzes the use of government economic policy tools to achieve desired outcomes. Additionally, the course will examine a few of the major issues of macroeconomic theory: Economic Growth, Unemployment, Balance of Payments Disequilibrium, Inflation, Budget and Trade Deficits. Finally, issues relevant to the macroeconomic management of small open economies will be discussed.

Learning Outcomes

Upon successful completion of this course the student will be able to;

• Describe and depict the macro-economy with the use schematics, graphs, and equations.
  
• Clearly define the economic output of a country and distinguish between the various concepts used to measure it
  
• Depict and explain the concepts of equilibrium and output gaps in the macro-economy
  
• Analyze and evaluate the impact of shocks to the macro-economic equilibrium, both with equations and with diagrams
  
• Explain the role and impact of government intervention in the macro-economy through its fiscal, monetary, and international trade policies
  
• Analyze and evaluate the use of the different tools available to the government in effecting its economic policies
  
• Identify the types and determinants of unemployment and suggest policies to tackle this problem in the context of Ghanaian economy
  
• Explain the theories of economic growth and identify the factors that restrain economic development in the Chana
  
• Explain the determination of exchange rates and the structure of the balance of payments of a country, and relate their significance to the macro-economy
  

Course Content

• Macroeconomic Issues and Measurement
  
• Macro-Economic Equilibrium: Income Determination in The Short Run
  
• Macro-Economic Equilibrium: Price Determination
  
• Fiscal Policy
  
• Money, Inflation and Monetary Policy
  
• Unemployment
  
• Economic Growth and Development in The Ghana
  
• Exchange Rates and The Balance of Payments
  
• International Trade and Trade Policy

Compulsory Reading Materials

• Lipsey R. G & Chrystal K. A (2011). ECONOMICS (12^th e.d). Oxford University Press.