Overview
This three-credit intermediate economics course uses the tools of macroeconomics to examine macroeconomic policy issues that range from output stability in the short run to unemployment and inflation in the long run. The IS-LM and AS-AD are the models we typically use to organize our thoughts about the economy. The IS-LM model (sometimes referred to as the Mundell-Fleming model) is used for analyzing the short-run implications of macroeconomic outcomes and policy, while the AS-AD model is used for understanding the long-run effects. The Phillips curve relation is also examined to help understand the impact of expectation-forming process on policy. There will be times, however, when we will have to refine and extend the model to help us analyze a macroeconomic phenomenon.
Outline
The course comprises the following units.
- Unit 1: Introduction to Macroeconomics
- Unit 2: The Labour Market
- Unit 3: The Goods Market
- Unit 4: Long-Run Economic Growth
- Unit 5: Financial Markets
- Unit 6: The Goods, Financial, and Labour Markets
- Unit 7: The IS-LM-FE Model: Adding Openness
- Unit 8: Business Cycle Analysis and the AS-AD Model
- Unit 9: Inflation, Unemployment, and Economic Growth
Learning outcomes
After completing this course, you should be able to
- identify and describe methods of computing aggregate output in the national income accounts.
- explain how the equilibrium output, interest rate, and wages are determined using standard economic models.
- apply the IS-LM model to analyze macroeconomic outcomes and policy in the short run.
- apply the AS-AD model to analyze macroeconomic outcomes and policy in the long run.
- discuss the implications of exchange rate regimes on macroeconomic outcomes and policy.
- derive the Phillips curve relation and discuss its implications for macroeconomic policy.
Evaluation
Your final grade is determined by a weighted average of the grades you receive on the following activities. To receive credit for this course, you must achieve a minimum grade of 50 percent on the final examination, and an overall grade of at least D (50 percent) for the entire course.
| Activity | Weight |
| 9 Quizzes | 30% |
| Assignment 1 | 20% |
| Assignment 2 | 20% |
| Final Exam | 30% |
| Total | 100% |
The final examination for this course must be requested in advance and written under the supervision of an AU-approved exam invigilator. Invigilators include either ProctorU or an approved in-person invigilation centre that can accommodate online exams. Students are responsible for payment of any invigilation fees. Information on exam request deadlines, invigilators, and other exam-related questions, can be found at the Exams and grades section of the Calendar.
To learn more about assignments and examinations, please refer to Athabasca University’s online Calendar.
Materials
Digital course materials
Links to the following course materials will be made available in the course:
.Abel, A.B., Bernanke, B.S., Croushore, D., & Kneebone, R.D. (2022). Macroeconomics (9th Cdn. ed.). Toronto: Pearson Canada Inc. ISBN: 978-0-13-672753-8
A print version of the eText can be purchased from the publisher through a direct-to-student link provided in the course website; you can also acquire the textbook on your own if you wish.
Other Resources
All other learning resources will be available online.
Challenge for credit
Overview
The challenge for credit process allows you to demonstrate that you have acquired a command of the general subject matter, knowledge, intellectual and/or other skills that would normally be found in a university-level course.
Full information about challenge for credit can be found in the Undergraduate Calendar.
Evaluation
To receive credit for the ECON 357 challenge registration, you must achieve a grade of at least D (50 percent) on the examination.
Final Exam (3 hours)
Challenge for credit course registration form