KABARAK UNIVERSITY

SCHOOL OF BUSINESS AND ECONOMICS

P.O Private Bag – 20157, KABARAK, KENYA

Course code: ECON 120 Course Name: Introduction to Macroeconomics

3 Credit Hours
COURSE OUTLINE
LECTURER:
Aggrey Lihanda Mwandihi Mobile: 0707253198 Email address: alihanda@kabarak.ac.ke

Course Description
This is an introductory course in macroeconomic theory that is intended to enable students have comprehension of macroeconomic
concepts and to use economic tools to solve macroeconomic problems.

Purpose of the Course

This course aims at enabling students to be firmly grounded in their future roles in, among others among others, academics,
management and policy analysis.

Expected Learning Outcomes

1. Knowledge acquired in basic macroeconomic concepts and theories;
2. Ability to discuss the relationship and application of modern macroeconomic theories to the present- day economy;
3. Ability to interpret economic situations from a macroeconomic perspective, and
4. Ability to offer policy solutions to various macroeconomic challenges

Learning Approaches
Lectures, discussions in class and groups, Group presentations, individual exercises and structured activities

Timelines

Week Date Detailed Course Content

1 Introduction to Macroeconomics - Definitions; microeconomics versus macroeconomics;
central issues in macroeconomics
2 Meaning and Measurement of National Income
Methods of measuring national income
3 Definitions; circular flow of income; concepts in national income; national income versus
welfare/standard of living
4 CAT 1
5 The Consumption Function- Definition and importance of consumption; Keynes
psychological Law; propensities to consume;
6 The Savings Function- Definition and importance of savings; propensities to save; the
multiplier and its application(s)
7 Gap Analysis - Definitions; deficiency of and excess demand; equilibrium level of
employment; deflationary gap; policy solutions to the deflationary gap
8 Gap Analysis - inflationary gap; policy solutions to the inflationary gap
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As members of Kabarak University, We purpose at all times and in all places to set a part in one’s heart, Jesus Christ
as Lord. (1 Peter 3:15)
 9 Unemployment - Definition of unemployment; types of unemployment; solutions to
unemployment
10 Money- Definitions; functions and characteristics, Liquidity preference theory, Central
bank and monetary policy
11 Inflation - Definition of inflation, demand-pull and cost-push inflation, effects of inflation,
solutions to inflation
12 REVISION & EXAMS

Course Assessments
Continuous Assessment Test (CAT) 15
Group Presentation 15
Final Examination 70
Total 100

Core Reading Texts (At least 3)

1. Abel, A. B., Ben, S. B. & Dean, C. (2017) Macroeconomics, London Pearson HB172.5 .A53
2. Barro, R. J. (2008) Macroeconomics: a modern approach, Mason, OH: Thomson Higher Education, HB172.5 .B37
3. Baumol, W. J & Blinder, A. S. (2000) Macroeconomics: principles and policy, Fort Worth: The Dryden Press
4. Boyers, W. & Melvin, M. (2008) Textbook of Economics 6 th Edition, Biztantra
5. Case, K.E. (2003) Principles of Macroeconomics, 6 th ed. HB172.5 .C37
6. Colander, D. C. (2001) Macroeconomics, 4th ed. Boston: McGraw-Hill, HB172.5 .C65
7. DeLong, J.B. (2006) Macroeconomics, Boston: McGraw-Hill, HB172.5 .D45
8. Dwivedi, D.N. (2010) Macroeconomics: theory and policy, Tata McGraw Hill, HB172.5 .D85
9. Joshua, G., Stephen, K., & Gregory, M. (2009) Principles of macroeconomics, 4 th ed. Australia Cengage Learning HB172.5 .P75
10. Jhingan, M. L. (2003) Macroeconomic theory 11th ed. Delhi: Vrinda, HB172.5 .J45
11. Mankiw, N. G. (2012) Principles of macroeconomics, Mason, Ohio: South-Western, HB172.5 .M36
12. Mukherjee, D. (2006) Essentials of micro and macroeconomics, Kolkata, India: New Central Book Agency, HB171.5 .M85
13. Mukherjee, S. & Ghose, A. (2009) Principles of macroeconomics, New Delhi: New Central Book Agency, HB172. 5 .M85
14. Vaish, M. C. (2002) Macroeconomic theory, New Delhi: Vikas

Other Reading Texts

Dernburg, T. F. (1985) Macroeconomics: concepts, theories, and policies, 7th ed. HB172.5 .D47
Dornbusch, R., Fischer, S. & Startz, R. (2008) Boston: McGraw-Hill, HB172.5 .D67
Galbraith, J. & Darity, W. (1994) Macroeconomics, Boston: Houghton Mifflin
Hardwick, P. et al (1990), An Introduction to Modern Economics. 7 th Ed., London, ELBS
Hyman, D. N. (1996) Macroeconomics, 4th ed. Boston: McGraw-Hill, HB172.5 .H96
Jenkinson, T. (2000) Readings in macroeconomics 2nd ed. Oxford: OUP, HB172.5 .R43
Mansfield, E. (1998) Essential macroeconomics: principles, cases, problems, New York: W. W. Norton, HB172.5 .M36
McConnell, C.R. & Bruce, S.L.(2002) Macroeconomics: principles, problems, and policies, Boston: McGraw-Hill, HB172.5 .M33
Mueller, M. G.(1988) Readings in macroeconomics, Delhi-7: Surjeet Publications, HB172.5 .M84
Parkin, M. (1999) Macroeconomics, Mass: Addison Wesley
Samuelson, P. A. & Nordhaus, W.D. (2005) 18th ed. New York: McGraw-Hill, HB172 .S26
Samuelson, P. A., Nordhaus, W. D. & Mandel, M. J. (1995) Macroeconomics, 15th ed. New York: McGraw-Hill, HB172.5 .S26
Singh, K. D. (1993) Principles of macroeconomics, New Delhi: Veena Exports Pvt., HB172 .S56
Sobel, R.S. Understanding macroeconomics, Mason, OH: Thomson Learning, HB172.5 .U53
Walstad, W. B. & Bruce, S. L. (2008) Macroeconomics, 17 th ed. Boston: McGraw-Hill, HB172.5 .M33
Williamson, S. D. (2018) Macroeconomics, UK Pearson, HB172.5 .W55

2
As members of Kabarak University, We purpose at all times and in all places to set a part in one’s heart, Jesus Christ
as Lord. (1 Peter 3:15)