EXPLOITS UNIVERSITY

1. FACULTY : Faculty of Commerce

2. DEPARTMENT : Department of Business
3. PROGRAMME : Bachelor of Business Administration
4. COURSE TITLE : Macro-Economics
5. COURSE CODE : BBA 1205
6. LEVEL : One
7. CREDITS :8
8. SEMESTER : Two
9. LECTURE HOURS : 45
10. TUTORIALS : 15
11. REVISED : In 5 years
12. APPROVAL DATE :

13. AIM OF THE COURSE

The aim of this course is to equip students with knowledge of major macroeconomic
variables such as GDP, employment, business fluctuations, fiscal and monetary policies,
international trade and economic growth and how they apply to the national and
international economies

14. COURSE DESCRIPTIOR

This module provides an introduction to macroeconomic issues i.e. the determination of
output, employment, interest rate, inflation, monetary and fiscal policies. The course also
embraces basic models of macroeconomics and principles relevant to African economies.

15. LEARNING OUTCOMES

Upon completion of the course, the learner shall be able to:
a) Describe how an economy works;
b) Discuss various macroeconomic models;
c) Explain business fluctuations and their impact on employment and GDP;
d) Distinguish monetary policy and fiscal policy; and
e) Discuss the impact of international trade and policies on domestic economies.

16. COURSE CONTENTS

a) The Macroeconomic Basics
Definition of macroeconomics;Approaches in measuring GDP (expenditure, output and
income approaches); National Account Concepts (GDP, GNP and GNI); Real GDP
versus nominal GDP; Challenges of calculating GDP.

b) The Aggregate Demand and Aggregate Supply

The Aggregate demand curve (AD); Reasons for the Aggregate demand curve’s
shape;Determinants of Aggregate demand; The Aggregate supply curve (AS) (short-run
and long-run aggregate AS assumptions);The range of the Aggregate supply;
 Determinants of Aggregate supply;AD-AS Macroeconomic equilibrium;
Inflation: cost-push and demand-pull inflation; Recessional Gap and Inflationary
Gap

c) Money and Banking

Money and the Economy; The Nature of Money; Commercial Banking and Deposit
Creation; Central Banking System and Monetary Control

d) The Role of Money in Macroeconomics

Supply and demand for Money; Monetary Forces and Aggregate Demand;
Macroeconomic Cycles and Aggregate Shocks; Implementation of Monetary Policy

e) Business Cycles and Unemployment

Total Spending and Business Cycle; Unemployment and Business Cycle; The Phillips`
Curve; Government Policy and the Business Cycle

f) Monetary Policy
The Classical View of the Role of Money (The Quantity Theory ); Keynesian View and
the Role of money

g) Fiscal Policy
Discretionary Fiscal Policy; Automatic Stabilizers; Supply Side Fiscal Policy; Demand
Side Fiscal Policy

h) National Income and the Price Level in the Long-run

Induced changes in the factor price; Long run consequences of aggregate demand
shocks;Real GDP in the short and long run; Government Policy and the business cycle

i) Classical and Keynesian Economics

Classical Economics; The Classification Theory and the Keynesian
Revolution;Consumption function ; Aggregate Expenditures/Investment function;
Keynesian Equilibrium; Spending Multiplier Effect; Recessional and inflationary gaps.
 j) Public Sector Economics
Public Choice Theory; Principles of Taxation; Tax incidence analysis;Government
Budget, Deficits, Surpluses and National Debt

17. METHOD OF ASSESSMENT

 Continuous assessment 40%
 Final examination 60%

18. TEACHING AND LEARNING APPROACHES:

Lectures, group discussion, e-learning, enquiry based learning, self-directed learning,
group assignment, field trips.

19. REFERECES
Prescribed Texts

 Begg, D. K. H. (2013) Economics: Introduction, McGraw-Hill

 Mankiw, N.G. (2018) Principles of Economics, 8th edition South Western
 McEachern, W. A, (2003) Economics: A Contemporary Introduction, 6th ed.
Thomson-South Western
 Case, K.E, Fair, R.C, Oster, S.M (2017), Principles of Macroeconomics (12 th ed),
Pearson, St. Louis
 Samuelson, P. A. and Nordhams W. D. (2014) Economics, 20th ed. London: McGraw-
Hill
 Tyler C. (2014) Modern Principles of Macroeconomics, Worth Publishers
 Brue, S.L. (2008) Essentials of Economics, 2nd Edition, McGraw-Hill, London

Recommended Texts
 Clackson, F. R. (2014) Economics: Principles, McGraw-Hill
 Lipsey, R. G, (2013) An Introduction to Positive Economics, 14th Harper
 Mankiw, N.G. and Taylor, M. P. (2006) Economics, Thomson Learning
 Mankiw, N. G. (2014) Principles of Economics, 6th edition South Western
 McConnell S. (2014) Macroeconomics: Principles, Problems and Polices, McGraw-
Hill Education