BSF II, Macro Outline

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
Page 2 of 5
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
Page 3 of 5
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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MAKERERE UNIVERSITY

MAKERERE UNIVERSITY BUSINESS SCHOOL

PROGRAMME: BACHELOR OF SCIENCE IN FINANCE

1.0 Course Brief

2.0 Course Objective

3.0 Learning Outcomes

4.0 Course Requirements:

5.0: Mode of Teaching

6.0 Course Assessment:

7.0 Course content:

Topics Description Lesson Details Hours Week Facilitat

2. Measurement  National Income 8 3,4&54 Miria

4 Unemployment 8 7&8 Dickson

5 Financial  Money, banking and 4 9&10 Dickson

8-0 Text Book

N. Gregory Mankiw (2015). Principles of macroeconomics. 7th Ed .Cengage Learning.

Lipsey G.R. (1989) An Introduction to Positive Economics

Team Leader HOD Economics

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