Econ2A Macroeconomics

Learning Outcomes for Students:

Upon completion of the course, students will be able to:
a.
b.
c.

Identify the needs of macroeconomics theories and models as bases

and foundation of understanding national and accounts;
Understand the total output and general price levels as key variables
to the macroeconomic conditions;
Know how the condition of the economy as a whole is affected by the
activities of the government, its fiscal policies, national income,
expenditures and investment.

Chapter #1: Introduction to Macroeconomics

At the end of the chapter, the students should be able to:
1.
Distinguish macroeconomics from microeconomics;
2.
Know the macroeconomics goals
Activity #1:
1. Define and distinguish macroeconomics from microeconomics.
2. Identify the macroeconomics problems and goals.
Chapter #2: Foundation of Macroeconomics
At the end of this chapter, the students should be able to:
1.
Discuss the different macroeconomic theories;
2.
Illustrate the application of the macroeconomic theories to current conditions
Activity #2:
1. Briefly discuss the following theories:
a. Classical Monetary Theory
b. Keynesian Theory
c. Modern Monetary Theory
Chapter #3: National Income Measurements
At the end of this chapter, the students should be able to:
1.
Determine the basis of National income;
2.
Compute GNP, Net National Product, and National Income;
3.
Compare current and real GNP
Activity #3:
1. What is the basis of the countrys national income?
2. What is Gross National Product? What is its purpose? What are its
limitations?
3. Compare and contrast Gross Domestic Product from Gross National Product.
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Chapter #4: Investment, Consumption, and Savings

At the end of this chapter, the students should be able to:
1.
Define consumption function, savings function and investment function
2.
Determine the equilibrium income
3.
Make a graphical illustration of consumption function and investment
function.
Activity #4:
1. Briefly define and explain consumption function, savings function, and
investment function.
2. What are the factors affecting consumption and savings?
3. Illustrate through a graph consumption function and investment function.
Chapter #5: Labor and Unemployment
At the end of this chapter, the students should be able to:
1.
Discuss the role of labor and employment to the economy:
2.
Illustrate the theories on labor and employment;
3.
Cite labor and employment strategies and policies that are applicable to the
Philippines economy.
Activity #5:
1. Briefly define and explain the following terms:
a. Unemployment and underemployment
b. The Subsistence Theory of Wages
c. The Laissez Faire Theory on Wages
d. Classical Theory on Wages
e. The Keynesian Theory of Labor and employment
2. What are the strategies and policies in labor and employment that are
applicable to the Philippine economy?
Chapter #6: Expenditure, Savings, and Income
At the end of this chapter, the students should be able to:
1.
Define personal income and consumption;
2.
Appreciate the importance of saving.
Activity #6:
Expound the following:
1. Personal income, Personal disposable income, and consumption
2. Marginal propensity to consume
3. Marginal propensity to save
4. Savings-investment mechanism

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Chapter #7: Prices, Money and Banking Prices

At the end of this chapter, the students should be able to:
1.
Explain the relationship between prices, money and banking;
2.
Suggest basic measures to control inflation and deflation in the Philippines;
3.
Assess current monetary policies in the country.
Activity #7:
1. What is price index? What are its uses?
2. What are the concepts of inflation and deflation?
3. What are the effect of inflation and deflation?
4. Explain the Quantity Theory of Money.
5. How the Banking system do creates money?
Chapter #8: Public Expenditure and Taxation
At the end of this chapter, the students should be able to:
1.
Classify public and private goods;
2.
Distinguish taxation from police power and eminent domain;
3.
Discuss the different forms and purpose of taxation.
Activity #8:
1. Define public and private goods. Give examples.
2. What are the inherent powers of the state? Distinguish one from the others.
3. What are the different forms and purposes of taxation? Briefly explain each.
Chapter #9: Government Demand, Fiscal Policy and National Budget
At the end of this chapter, the students should be able to:
1.
Determine the uses of fiscal policy:
2.
Analyze the national budget as a fiscal means;
3.
To discuss the role of fiscal policy in the macroeconomic business cycle.
Activity #9:
1. What is fiscal policy? What are its uses?
2. What is the role of fiscal policy in macroeconomics?

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