MAKERERE UNIVERSITY
MAKERERE UNIVERSITY BUSINESS SCHOOL
FACULTY OF COMMERCE, DEPARTMENT OF ECONOMICS
SEMESTER TWO, ACADEMIC YEAR 2016/2017
COURSE OUTLINE
PROGRAMME: BACHELOR OF SCIENCE IN FINANCE
YEAR OF STUDY: TWO
COURSE: MACROECONOMICS
COURSE CODE: BBE 2208
COURSE LEVEL: 1
Instructors
1. Miria Nakamya 0705 118852 mnakamya@mubs.ac.ug
2. Mr. Dickson Turyareba 0772891888 dturyareba@mubs.ac.ug
1.0 Course Brief
This is an introductory course in Macroeconomic theory. The course gives a foundation
in Macroeconomics to students pursuing any business related discipline. It deals with
principles of economics that apply to the economy as a whole. Topics to be covered
include; economic fluctuations; national income; economic growth, national income,
aggregate employment, inflation, the financial sector; exchange rates, international trade
and macroeconomic policies.
2.0 Course Objective
The major aim of the course is to acquaint students with knowledge of a macroeconomics
in order for them to understand how the macroeconomy would impact on business
entities and investments. Specifically, the course intends to;
Teach students the different macroeconomic goals and the dilemma faced by
policy makers.
Introduce students to the concepts of economic fluctuations, national income and
how policies can be applied to even out fluctuations.
Teach students the working of the macroeconomy using aggregate demand and
aggregate supply.
Introduce students to the role of the financial sector and how it is linked to the real
sector.
Provide knowledge about the relation of one economy with the world through
international trade.
3.0 Learning Outcomes
Upon completion, students should be able to;
Understand the major macroeconomic goals
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Understand how various macroeconomic indicators such as inflation, interest rate,
exchange rate impact on the economy.
Describe the macroeconomy using aggregate demand and aggregate supply
Demonstrate an understanding of monetary and fiscal policy options as they relate
to economic stabilization.
Understand the role of the financial sector in an economy
Understand how countries relate with the global economy through international
trade
4.0 Course Requirements:
The course does not use mathematics beyond the high-school level, hence no
prerequisite.
5.0: Mode of Teaching
A variety of delivery methods will be used comprising:
- Straight lecture
- Group discussions
- In- class Presentations
- Group and Individual Assignments.
6.0 Course Assessment:
Coursework 30%
Final Examination 70%
Final Mark 100%
7.0 Course content:
Topics Description Lesson Details Hours Week Facilitat
No. or
1. Introduction What Economics and 8 1 &2 Miria
Macroeconomics is all
about
Macroeconomics
goals
Macroeconomic
markets
The business cycle
Output gaps
Policies to output gaps
Aggregate sectors of
the economy
The circular flow of
income
2. Measurement National Income 8 3,4&54 Miria
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of Economic Accounts
Performance Measurement of
national income
Circular flow of
income and
expenditure
Gross Domestic
Product and its
components
Real versus Nominal
GDP
Consumption, savings
and investment
Classical theory of
income determination
Keynesian theory of
income determination
Aggregate demand
and supply
Macroeconomic
equilibrium in the 2,
and 3 sector model
The expenditure
multiplier
Deflationary and
inflationary gaps
How inflationary and
deflationary gaps are
closed through the
multiplier process
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3. Inflation Price indices 8 5&6 Miria
Causes, measurement
and adjustment of
inflation
Nominal versus Real
values of inflation
Costs and remedies of
inflation
Trade-off between
inflation and
unemployment (The
short run Philips curve
model)
Inflation in your
country, and how it
affects businesses
4 Unemployment 8 7&8 Dickson
and the labor
market Definition and
measurement of
unemployment
Types of
unemployment
The demand for, and
supply of labour
Neoclassical labour
market equilibrium
5 Financial Money, banking and 4 9&10 Dickson
sector financial markets
Qualities and
functions of money
The quantity theory of
money
Money demand and
supply
The role of the central
bank
The role of
commercial banks and
other financial
intermediaries
Credit creation
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6 Open International trade 8 11&12 Dickson
Economy: Absolute and
International Comparative
Trade and advantage
Finance Balance of Payments
Accounts
Foreign exchange
markets
Devaluation
Currency depreciation
and appreciation
8-0 Text Book
N. Gregory Mankiw (2015). Principles of macroeconomics. 7th Ed .Cengage Learning.
Baumol W.J. & Blinder A.S. (1998) Economics; Principles and Policy, 7th Ed
Sachs D. J. & Felipe L. B. (1993) Macroeconomics in the Global Economy. Prentice Hall
Inc.
Lipsey G.R. & Harbuny C. (1992) First Principles of Economics
Lipsey G.R. (1989) An Introduction to Positive Economics
Team Leader HOD Economics
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