Principles of Macroeconomics

Course Code:

ECON 122

Course Period:

Spring

Course Type:

Core

P:

3

Application:

0

Credits:

3

ECTS:

7

Course Language:

İngilizce

Course Objectives:

The purpose of this course is to convey the main principles of economics and economic way of thinking to students. The goals of the course are providing students to evaluate macroeconomic conditions such as national income, unemployment, inflation, and growth , how monetary policy and fiscal policy can be used to influence short-run and long-run macroeconomic conditions.

Course Content:

Economics is the study of how individuals and societies choose to use scarce resources to satisfy unlimited human wants. Macroeconomics focuses on the overall economy. Students will be introduced to economic models that are designed to explain certain macroeconomic phenomena and problems such as growth, output, unemployment and inflation. In addition, we will analyze certain aspects of the financial system. We will also analyze the strengths and weaknesses of the different government policies in influencing the overall economy.

Course Methodology:

1: Lecture, 2: Question-Answer, 3: Discussion, 12: Case Study

Course Evaluation Methods:

A: Testing, B: Experiment, C: Homework, Q: Quiz

Vertical Tabs

Course Learning Outcomes

Learning Outcomes	Program Learning Outcomes	Teaching Methods	Assessment Methods
Will be able to understand GDP and Standart of Living	1, 2, 4, 6	1, 2, 3	A, C
Will be able to define CPI and Cost of Living	1, 2, 4, 6	1, 2, 3	A, C
Will be able to explain Jobs and unemployment	1, 2, 4, 6	1, 2, 3	A, C
Will be able to understand Potantial GDP and labor markets	1, 2, 4, 6	1, 2, 3	A, C
Will be able to define the monetary system and also inflation	1, 2, 4, 6	1, 2, 3	A, C
Will be able to consider about the effects of fiscal and monetary policies	1, 2, 4, 6	1, 2, 3	A, C

Course Flow

COURSE CONTENT
Week	Topics	Study Materials
1	Introduction to the course.	Introduction to Economics
2	1.Macroeconomic concerns 2. Output growth 3. Unemployment 4. Inflation and Deflation 5. The circular flow diagram 6. The three market arenas 7 The role of the government in the Macroeconomy 8. A brief history of macroeconomics.	Chapter 20 : Introduction to Macroeconomics
3	1. Gross Domestic Product 2. Calculating GDP, the Expenditure approach 3. The income approach 4. Nominal versus real GDP 5. Calculating real GDP 6. Calculating the GDP deflator 7. Limitations of the GDP concept.	Chapter 21: Measuring National Output and National Income
4	1. Unemployment 2. Measuring unemployment 3. Components of the unemployment rate 4. Types of the unemployment rate 6. Inflation and deflation 7. The consumer price index and market basket. 8. Calculating the inflation 9. The costs of inflation 10. Interest rate and inflation.	Chapter 22 : Unemployment and Inflation
5	1. Unemployment 2. Measuring unemployment 3. Components of the unemployment rate 4. Types of the unemployment rate 6. Inflation and deflation 7. The consumer price index and market basket. 8. Calculating the inflation 9. The costs of inflation 10. Interest rate and inflation.	Chapter 22 : Unemployment and Inflation
6	1. The Keynesian theory of consumption 2. Aggregate consumption function and the graph 3. Aggregate saving function 4. Planned investment versus actual investment 5. Planned investment and the interest rate 6. The determination of equilibrium output (income) 7. The saving/investment approach to equilibrium 8. Adjustment to equilibrium 9. The multiplier equation for investment changes.	Chapter 23 : Aggregate Expenditure and Equilibrium Output
7	1. Role of the government in an economy. 2. The determination of equilibrium output (income) 3. Fiscal policy at work: Multiplier Effects 4. The Government spending multiplier 5. The tax multiplier 6. The balanced-budget multiplier 7. Automatic stabilizers and destabilizers 8. Full-employment budget.	Chapter 24 : The Government and Fiscal Policy
8	Mid-Term Exam	Mid-Term Week
9	1. What is Money? 2. Commodity and fiat money 3. Measuring the supply of money 4. How banks create money, a historical perspective 5. The modern banking system 6. The creation of money, T-account 7. The money multiplier 8. The demand for money 9. Interest rates and security prices 10. How the Federal Reserve controls the interest rate, required reserve ratio, discount rate, open market operations.	Chapter 25 : Money, The Federal Reserve, and the Interest Rate
10	1. What is Money? 2. Commodity and fiat money 3. Measuring the supply of money 4. How banks create money, a historical perspective 5. The modern banking system 6. The creation of money, T-account 7. The money multiplier 8. The demand for money 9. Interest rates and security prices 10. How the Federal Reserve controls the interest rate, required reserve ratio, discount rate, open market operations.	Chapter 25 : Money, The Federal Reserve, and the Interest Rate
11	1. The Aggregate Supply (AS) curve in the short run 2. The IS curve 3. Explaining the Fed rule via the interest rate equation 4. The Aggregate Demand (AD) curve 5. The final equilibrium 6. The long run AS curve.	Chapter 26 : The Determination of Aggregate Output, the Price Level, and the Interest Rate
12	1. The Aggregate Supply (AS) curve in the short run 2. The IS curve 3. Explaining the Fed rule via the interest rate equation 4. The Aggregate Demand (AD) curve 5. The final equilibrium 6. The long run AS curve.	Chapter 26 : The Determination of Aggregate Output, the Price Level, and the Interest Rate
13	1. Fiscal policy effects 2. Monetary policy effects 3. Cost shocks 4. Demand-side shocks	Chapter 27 : Policy Effects and Cost Shocks in the AS/AD Model
14	Final Review	Final Review

Recommended Sources

RECOMMENDED SOURCES
Textbook		Karl E. Case, Ray C. Fair (2017). Principles of Economics (12th.ed.), Pearson, Global Edition.
Additional Resources		N. Gregory Mankiw (2020). Principles of Macroeconomics. (9th.ed.), Cengage Learning. Rober Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz (2019). Principles of Macroeconomics (7th.ed.), McGraw-Hill Education.

Material Sharing

MATERIAL SHARING
Documents
Assignments		Every week a new assigment is prepeared by teacher and given to students
Exams

Assessment

ASSESSMENT
IN-TERM STUDIES	NUMBER	PERCENTAGE
Mid-terms	1	80
Quizzes (attendance, presentation, etc.)	2	10
Assignments	3	10
	Total	100
Contribution of Final Examination to Overall Grade		50
Contribution of In-Term Studies to Overall Grade		50
	Total	100
Course Category

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAM
No	Program Learning Outcomes	Contribution
		1	2	3	4	5
1	1. Students can keep themselves informed and analyze the current economic development in Turkey and in the world from an international political economy perspective paying a particular attention to the interaction of the Turkish economy with the global economy.			X
2	2. Being aware of the development and accumulation of economic thought, students can master qualitative and quantitative knowledge and methods to test various economic theories that can be applied to the analysis of the current economic problems.				X
3	3. Students can use statistical and econometric analyses by learning how to use information technologies that have validity and widespread use in the field of economics.
4	4. By learning how to learn in the field of economics, students can research and work individually or as a team using the Turkish and English academic resources.					X
5	5. Being aware of the ethical values, students know the individual, social and ecological dimensions of the concept of social responsibility and can prove that they understand the active citizenship duty that falls upon them within this framework.
6	6. Students can clearly express, present and share their knowledge, the outcomes of their studies, their ideas and comments to people in their field or other disciplines/units using the necessary data, in national and international academic and professional environments, in Turkish or English.					X
7	Students can show that understanding the universality of social rights and the concepts of social justice, which form the basis of the modern societies, and the importance of scientific perspective, which is necessary to the social development and global competitiveness.

ECTS

ECTS ALLOCATED BASED ON STUDENT WORKLOAD BY THE COUSE DESCRIPTION
Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Course Duration (Including the Exam Week: 15 x total course hours)	15	3	45
Hours for off-the-classroom study (Pre-study, practice)	15	4	60
Mid-terms	1	20	20
Quizzes (attendance, presentation, etc.)	0	0	0
Assignments	3	10	30
Final Examination	1	20	20
Total Work Load			175
Total Work Load / 25 (s)			7
ECTS Credit of the Course			7

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