UNIVERSITY OF WATERLOO

DEPARTMENT OF ECONOMICS

Wokia Kumase ECONOMICS 102-004 Winter, 2013
Introduction to Macroeconomics

Office: HH 217
Phone: 519-888-4567 ext. 36006
E-mail: wkumase@uwaterloo.ca (Please use Econ-102 in the subject line of your mail
and message must include your full name and ID number)

Office Hours: Thursdays, 4:00 6:00p.m
Notes:
Students are encouraged to discuss their questions or problems about the course
and course materials with me in person during office hours . Group consultations
are welcomed.
I do not respond to emails asking questions on material taught in class. I am more
than happy to spend time explaining and clarifying concepts during office hours or
by appointment.
Use email for administrative concerns only. I will be available during office hours
to discuss course material, or by appointment in cases students cannot attend them.

No TAs for this course

Class Hours & Locations: TH 7:00 - 9:50p.m at University of Waterloo, RCH 101

Course Website:
This course outline is available at two locations for the duration of the term:
a) Department of Economics website http://economics.uwaterloo.ca/ug-
courseschedule.htm.
b) LEARN web site http://learn.uwaterloo.ca/ (use WatIAM/Quest username and
password).

Course Description:
Macroeconomics is the study of overall or aggregate performance of an economy
including growth in incomes, changes in the overall level of prices and the unemployment
rate. This course will introduce students to the basic concepts and theories in
macroeconomics. The focus of this course is to introduce key macroeconomic variables
such as gross domestic product (GDP), inflation, unemployment rate, nominal and real
interest rate, savings, investment, and exchange rate and how these variables are
influenced by both monetary and fiscal policies of the government. The course will cover
both short run fluctuations in the economy (business cycles) and long run trends
(economic growth).The macroeconomic theories will be used to understand the workings
of different economies of the world with special emphasis on Canadian economy.

Course Objectives
At the end of the course, students should be able to
describe the basic macroeconomic variables,
understand how the economy works,
understand how governments and the Central Bank influence economic variables and
outcomes,
distinguish the long run from the short run,
provide an understanding of current macroeconomic events.

Required textbook
Mankiw, N. Gregory, et. al. (2011). Principles of Macroeconomics, 5
th
Canadian edition.
Toronto: Nelson. Available from UW BookStore.

Optional: Accompanied Study Guide

Assessments
The mark breakdown:
Midterm I Friday Feb 1, 4:30-5:50 pm 25%
Midterm II Friday Mar 8, 4:30-5:50 pm 25%
Final exam (comprehensive) TBA (between Apr 11-25) 50%

Notes:
Exams will consist of multiple-choice questions, and perhaps short-answer questions.
The date and time for the final exam will be set by the Registrar during the exam
period and announced in class and on LEARN.
Students are expected to be available during the exam period to write the final exam.
Travel plans are not an acceptable reason for requesting an alternative final exam. See
http://www.registrar.uwaterloo.ca/exams/finalexams.html for details.
Examinations in this course are based on the material contained in the assigned
textbook readings and presented as lecture contents (which are strong complements,
not substitutes).

Course Outline
I. Introduction Weeks 1 - 2
1. Chapter 1 Ten Principles of Economics
2. Chapter 2 Thinking Like an Economist (exclude appendix)

II. The Data of Macroeconomics Weeks 3 - 4
3. Chapter 5 Measuring a Nations Income
4. Chapter 6 Measuring the Cost of Living

III. The Real Economy in the Long Run Weeks 5 - 7
5. Chapter 7 Production and Growth
6. Chapter 8 Saving, Investment, and the Financial System
7. Chapter 9 Unemployment and Its Natural Rate

IV. Money and Prices in the Long Run Week 8 - 9
8. Chapter 10 The Monetary System
9. Chapter 11 Money Growth and Inflation

V. The Macroeconomic of Open Economies Week 10
10. Chapter 12 Open-Economy Macroeconomics: Basic Concepts (pp 269-285)

VI. Short-run Economic Fluctuations Weeks 11-12
11. Chapter 14 Aggregate Demand and Aggregate Supply
12. Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand
Additional Information:
1. Missing the Final Exam Due to Illness
Missing the final exam is a very serious matter which automatically results in a
zero mark for the exam itself and possibly a failing mark for the course. Read the
department policy on deferred final exams
http://economics.uwaterloo.ca/DeferredExams.html
No deferred final exam will be provided for students who missed all the exams
(including the final exam) in this course.
2. Missing a Midterm Due to Illness During the Term
If a student misses a midterm due to illness and has valid documentation (approval
required), the weight of the missed midterm will be shifted to the final exam.
Without valid documentation the student will receive zero for the missed midterm.
Midterms will not be rescheduled under any circumstances.
must notify me in person about missed exams as soon as possible.
3. Submissions of Exam Papers
Late submission of exam papers is not accepted and missed submission will
receive zero marks for whatever reason.
Exam papers must be submitted in whole and on time in the exam room. Exam
papers (a) not submitted on time or (b) submitted with missing pages or (c)
submitted elsewhere or (e) not received at all will receive zero marks for whatever
reason.
4. Fee-Arranged Issues
Students are responsible for administrative matters concerning their course registration
including fee arrangements. No make-up work or remedies will be given for losses of
access to LEARN and academic consequences arising from administrative issues with
the Registrars Office.
5. Economic Clinic
The walk-in Economic Clinic offers free tutorial services to ECON 102 students (all
sections). Check with LEARN, classes, and the department for availability.
6. Classroom Protocols
No private conversations in class will be tolerated.
As a courtesy to others, no eating in class. If you have coffee, water, etc., please
dispose of your garbage.
This is a device-free zone. Turn off all devices and put them away for the duration
of the lecture.
Photographic devices are not permitted in class. This is a University regulation.
I do NOT lend my lecture notes to students.
In order to maintain a learning environment in this classroom, I expect the highest
level of courtesy and professional behaviour from every student.








University Statements
1. Cross-Listed Courses
Please note that a cross-listed course will count in all respective averages no matter
under which rubric it has been taken. For example, a PHIL/PSCI cross-list will count
in a Philosophy major average, even if the course was taken under the Political
Science rubric.
2. Academic Integrity
Academic Integrity: In order to maintain a culture of academic integrity, members of
the University of Waterloo are expected to promote honesty, trust, fairness, respect
and responsibility.
Discipline: A student is expected to know what constitutes academic integrity, to
avoid committing academic offences, and to take responsibility for his/her actions.
A student who is unsure whether an action constitutes an offence, or who needs
help in learning how to avoid offences (e.g., plagiarism, cheating) or about rules
for group work/collaboration should seek guidance from the course professor,
academic advisor, or the Undergraduate Associate Dean. When misconduct has
been found to have occurred, disciplinary penalties will be imposed under Policy
71 Student Discipline. For information on categories of offenses and types of
penalties, students should refer to Policy 71 Student Discipline,
http://www.adm.uwaterloo.ca/infosec/Policies/policy71.htm
Grievance: A student who believes that a decision affecting some aspect of his/her
university life has been unfair or unreasonable may have grounds for initiating a
grievance. Read Policy 70 Student Petitions and Grievances, Section 4,
http://www.adm.uwaterloo.ca/infosec/Policies/policy70.htm
Appeals: A student may appeal the finding and/or penalty in a decision made under
Policy 70 Student Petitions and Grievances (other than regarding a petition) or
Policy 71 Student Discipline if a ground for an appeal can be established. Read
Policy 72 Student Appeals,
http://www.adm.uwaterloo.ca/infosec/Policies/policy72.htm
Academic Integrity website (Arts):
http://arts.uwaterloo.ca/arts/ugrad/academic_responsibility.html
Academic Integrity Office (University): http://uwaterloo.ca/academicintegrity/
3. Accommodation for Students with Disabilities:
Note for students with disabilities: The Office for Persons with Disabilities (OPD),
located in Needles Hall, Room 1132, collaborates with all academic departments
to arrange appropriate accommodations for students with disabilities without
compromising the academic integrity of the curriculum. If you require academic
accommodations to lessen the impact of your disability, please register with the
OPD at the beginning of each academic term.