COURSE TITLE: Intermediate Applied Macroeconomic Theory
CREDIT WEIGHT AND WEEKLY TIME DISTRIBUTION: credits 3 (hrs lect 3 - hrs sem 0 - hrs lab 0)
COURSE DESCRIPTION: Expansion and deeper examination of the macroeconomic theoretical models for the functioning of an open macroeconomy, like that of Canada. This will include models that produce calculable estimates of the main macroeconomic variables such as total output, the general price level and inflation, levels of employment, and causes and impact of fluctuations in the economy’s performance. Descriptive and evaluative data on the Canadian situation will be included and examined throughout.

Prerequisites: ECON 203, 204
REQUIRED TEXTS: Abel, Bernanke, Croushore and Kneebone. Macroeconomics: Sixth Canadian Edition. Pearson, 2012.
Tutorial quizzes10%
Course project25%
Midterm 115%
Midterm 215%
Comprehensive Final Exam25%
COURSE OBJECTIVES: The financial crisis and recession of 2008-2009 triggered heated debates about macroeconomic policy in Canada and globally, which have continued today. Economists and policy-makers disagree about issues around economic growth, recessions, inflation and unemployment, leading them to propose drastically different policies based on their understandings of how the economy works. This course is intended to help you become more informed about the macroeconomic theories that lie behind these debates and thus be better equipped to make a contribution to such debates. 

By the end of this course, you should be able to:
  • Locate and use data to describe what is happening in the macroeconomy.
  • Explain the causes and/or predict the consequences of events related to the macroeconomy.
  • Propose and justify policy solutions for macroeconomic problems.
  • Use evidence and arguments, including arguments from various Christian perspectives, to critically assess macroeconomic issues, theories, and policies.
This course examines some of the same material covered in the introductory economics courses, but in more depth and with more use of the “rigorous” analytical techniques (especially equations and graphs) that economists typically rely on to develop these theories. This is important particularly for students who hope to continue their studies in economics, and those who intend to pursue a career in public policy, since these models are heavily  used both in economic theory and in policy-making.
  • Jan. 5 Welcome and introduction to the course
  • Jan. 8-12 The measurement and structure of the Canadian economy (Ch. 2) 
  • Jan. 15-19 Productivity, output and employment (Ch. 3)
  • Jan. 22-26 Consumption, saving and investment (Ch. 4)
  •  No class Jan. 24 – I.S. Conference
  • Jan. 29-31 Saving and investment in the open economy (Ch. 5)
  • Feb. 2-7 Long-run economic growth (Ch. 6)
  • Feb. 9 Midterm #1
  • Feb. 12-16 The asset market, money and prices (Ch. 7)
  • Feb. 19-23 No classes - reading week 
  • Feb. 26-Mar. 5 Business cycles (Ch. 8) and the IS-LM/AD-AS model (Ch. 9)
  • Mar. 7-9 Classical business cycle analysis (Ch. 11)
  • Mar. 12-16 Keynesian business cycle analysis (Ch. 12)
  • Mar. 19 Midterm #2
  • Mar. 21-23 Unemployment and inflation (Ch. 13)
  • Mar. 26-28  Monetary policy (Ch. 14)
  • Mar. 30, Apr. 2 No classes - Good Friday and Easter Monday
  • Apr. 4-9 Fiscal policy (Ch. 15)
  • Apr. 11-16 Growth and stability on a finite planet (assigned readings)
  • TBD Final exam (date to be set by Registry)

The King's University College
Maintained By Glenn J Keeler, Registrar