UNIVERSITY OF GHANA

(All rights reserved)

DEPARTMENT OF ECONOMICS
SECOND SEMESTER 2020/2021 ACADEMIC YEAR

COURSE SYLLABUS
ECON 314: MACROECONOMICS II (3 CREDITS)

LECTURE PERIOD AND VENUE:

Main Campus

Group A: Wednesday, 9.30pm – 11.20pm; Central Cafeteria

Group B: Friday, 7.30am – 9:20am; NNB2

Accra City Campus

Monday, 12.10pm – 2.10pm; Smart Classroom (Library Complex)
Wednesday, 4.30 – 6.30pm (Online)

COURSE INSTRUCTORS

Dr. Emmanuel A. Codjoe [EAC]

Office Location: Economics Department W18A
Office Hours: Friday (10.00am – 12.00pm)
Email: ecodjoe@staff.ug.edu.gh

Dr. Priscilla Twumasi Baffour [PTB]

Office Location: Economics Department W15A
Office Hours: Thursday (10.30am – 12.00 pm)
Email: ptbaffour@ug.edu.gh

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COURSE PRE-REQUISITES
Students must have previously read ECON 211 and ECON 212. Additionally, a fairly good
knowledge of algebra would be helpful.

COURSE DESCRIPTION
This course is intended to provide a rigorous framework for understanding modern
macroeconomics, by emphasising on the core constituents of the macroeconomic framework.
Thus, the course would focus on the three main components of aggregate demand,
consumption, investment and the government sector. Further, the course extends the basic
understanding of money by examining in detail the demand for and supply of money. Finally,
the course examines the policy dilemmas involved in addressing the problem of inflation and
unemployment.

RECOMMENDED TEXTS
1. Dornbusch, R., S. Fischer and R. Startz (2011). Macroeconomics, 11th Edition, Irwin
McGraw-Hill.

2. Mankiw, N.G. (2013). Macroeconomics, 8th Edition, Worth Publishers.

3. Abel, A, Bernanke, B, and McNabb, Robert (1998). Macroeconomics, European

Edition, Pearson Education.

4. Branson, W.H. (1997). Macroeconomic Theory and Policy, 3rd Edition, Harper and
Row.
** Further readings and additional materials for the course will be provided during the course

COURSE GOALS
The course is designed with the following goals:
• To provide students with a better understanding of the behavioural foundations of
modern macroeconomics.
• To examine in detail the micro-foundations of consumption and consumer expenditure
in the macroeconomic context.
• To provide a better understanding of investment behaviour in an economy
• To explore the various options governments face in financing expenditure and how
that relates to the level of public debt in an economy.
• To understand the trade-off inherent in addressing the twin problems of inflation and
unemployment.
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LEARNING OUTCOMES
After the successful completion of this course the student should be able to do the following:

• Explain the main theories explaining consumer expenditure

• Understand the major factors affecting investment behaviour in an economy
• Understand the various motives underlying the demand for money and how central
banks affect the supply of money
• Improved understanding of fiscal policy and its macroeconomic effects, especially in
relation to fiscal deficits and the public debt.
• Understand the costs of inflation and unemployment in an economy

COURSE DELIVERY
The course would be delivered through a combination of in-person face-to-face lectures and
recorded lectures to ensure students receive the maximum 24 contact hours of teaching
required in the semester.
These lectures (in-person or online) will each be for the duration of approximately two hours.
Finally, students are required to supplement the lectures with individual study.

PLAGIARISM POLICY
Plagiarism in any form is unacceptable in the University of Ghana and shall be treated as a
serious offence. Appropriate sanctions, as stipulated in the Plagiarism Policy, will be applied
when students are found to have violated the Plagiarism Policy of the University of Ghana.

ASSESSMENT AND GRADING

Course Interim Assessments................................. 40-50%
Interim Assessments are expected to take place between the 3rd and 6th week of the semester.
Official dates and modes of the assessment will be announced during semester.
Final Exam...............................................................................50-60%

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GRADING SCALE: Students’ performance on the course shall be graded as follows:

COURSE DELIVERY PLAN

Week Lecture
No. Topic Comments
1 1 Introduction and A presentation of an overview of the
overview to the course, the organisation of lectures
course grading and other related matters.
[EAC]
Consumption and We seek to understand what drives
Consumer consumption and the link between
Expenditure consumption and income. [EAC]
1 2 Consumption and We study several more advanced
Consumer theories of consumption. [EAC]
Expenditure

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2 3 Investment This lecture explores in detail the
underlying dynamics that affects
investment fluctuations in the
economy. [EAC]
2 4 Investment We also examine various theories of
investment spending, emphasising on
the microeconomic view of investment
demand. [EAC]
3 5 The Government We discuss the government budget
Sector constraint, fiscal policy its
macroeconomic effects. [EAC]
3 6 The Government We continue our discussion by looking
Sector at the various ways to finance the
fiscal deficit, and its effects on the
national debt. [EAC]
4 7 The Demand for We discuss the various motives for
Money holding money in a modern economy.
[PTB]
4 8 The Demand for We continue the discussion on money
Money demand. [PTB]
5 9 The Supply of We discuss money supply, the
Money instruments of monetary policy and the
mechanism of monetary expansion.
[PTB]
5 10 The Supply of We continue our discussion on money
Money supply and look at the determinants of
money supply. [PTB]
6 11 Inflation, Output We begin our discussion of this very
and Unemployment important aspect of macroeconomic
policy by looking at the Phillips curve.
[PTB]
6 12 Inflation, Output We look at inflation and
and Unemployment unemployment separately, and then
consider the costs that each imposes
on society. [PTB]

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