LSP340 - Macroeconomics - Theory & Practice

Outline info
Semester
School
Last revision date 2017-07-17 00:00:08.047
Last review date 2017-07-20 10:39:53.956


Subject Title
Macroeconomics - Theory & Practice

Subject Description
This subject examines the definition and measurement of principal aggregate economic indicators including gross domestic product, unemployment and inflation. It also explains how the level of economic activity, prices, interest rates and the value of the Canadian dollar are determined under different internal and external environments and under various government policies. A basic open-economy model is constructed, and the impact of alternative fiscal, monetary and trade policies on macro economic variables are analyzed and appraised.

Credit Status
One upper-level Liberal Studies elective credit.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

  1. Appraise the principal macroeconomic indicators and the methods utilized for their measurement.
  2. Differentiate the sources of productivity and assess the implications for sustained growth with respect to classical, neoclassical, and new growth theories and their respective policy implications.
  3. Assess the flows of investment and saving in financial markets and institutions in closed, public, and open economies.
  4. Outline the role of money and its functions, illustrate the functions of the banking system, model the creation of money and the money multiplier, and compare the influence of both money supply on interest rates in the short run and money growth on inflation in the long run.
  5. Develop the Keynesian model with the expenditure multiplier.
  6. Construct the aggregate demand/aggregate supply model and contrast it with the aggregate expenditure model.
  7. Explain how levels of real GDP and price level are determined, and how unemployment, inflation, and business cycles arise, contextualized in the principal macroeconomic schools of thought, including the Classical, Keynesian, and Monetarist.
  8. Appraise the effects of fiscal policy, automatic stabilizers, and government stimulus on macroeconomic variables.
  9. Analyze the effects of conventional monetary policy on macroeconomic variables utilizing the transmission mechanism, and examine the need for extraordinary or unconventional monetary policy strategy.
  10. Evaluate exchange rate policies and the balance of payments in the global context.

Essential Employability Skills
Communicate clearly, concisely and correctly in the written, spoken and visual form that fulfils the purpose and meets the needs of the audience.

Respond to written, spoken, or visual messages in a manner that ensures effective communication.

Apply a systematic approach to solve problems.

Use a variety of thinking skills to anticipate and solve problems.

Locate, select, organize, and document information using appropriate technology and information systems.

Analyze, evaluate, and apply relevant information from a variety of sources.

Show respect for diverse opinions, values, belief systems, and contributions of others.

Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.

Manage the use of time and other resources to complete projects.

Take responsibility for one's own actions, decisions, and consequences.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on http://library.senecacollege.ca for further information regarding cheating and plagiarism policies and procedures.

Discrimination/Harassment
All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at student.conduct@senecacollege.ca.

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Prerequisite(s)
LSP240 – Micro Economics

Topic Outline

  •  Measurement and Assessment of Economic Indicators
  •  Economic Growth
  •  Monitoring Jobs and Inflation
  •  Finance, Saving, and Investment
  •  Money, the Price Level, and Inflation
  •  Expenditure Multipliers: The Keynesian Model
  •  Aggregate Supply and Aggregate Demand
  •  Canadian Inflation, Unemployment, and the Business Cycle
  •  Fiscal Policy
  •  Monetary Policy
  •  Exchange Rate, the Balance of Payments, and International Trade Policy

Mode of Instruction
Your professor will use a variety of appropriate teaching modes and techniques including lectures, problem solving, case studies, and group discussions.

Prescribed Texts

Parkin, M. and R. Bade. Macroeconomics: Canada in the Global Environment Plus MyEconLab with Pearson eText - Access Card Package, Latest Edition. Pearson Education.

Reference Material
All students are required to use the following Research Guide for their assignments:
Seneca Libraries MLA Citation Guide (MLA 8th Edition) available at http://seneca.libguides.com/mla.

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
OR
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online (http://www.senecacollege.ca/academic-policy) or at Seneca's Registrar's Offices.


Modes of Evaluation

To be successful in this course, you must complete all course work as specified and achieve an overall grade of 50% or higher. For further information on evaluation and academic standing, see a copy of the Academic Policy available at Seneca registration offices.

Term work:
All term work assignments must be completed prior to the time of the final exam or last class.  Students must contact faculty in advance of the assignment due date to discuss the possibility of an extension.  Late assignments may be subject to the awarding of a penalty resulting in a lower grade assigned. Make-up opportunities for assignments must also be made in advance of the scheduled due date.  If an assignment is missed due to class absence, official documentation must be submitted to the faculty member on or before the next scheduled class. Make-up opportunities may not apply to all graded assignments.

Quiz(s)                                      10%
Mid-term                                    20%
Assignments                              45%
Final Exam                                25%

Student Success:

In-Class
Please come prepared to participate in class. Make sure you bring your course text to each class, participate in class discussions, hand in any assigned work on time and attend each and every class. Following these suggestions will increase your chances of success.

Approved by: Fiona Bain-greenwood