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UNIVERSITY OF CEBU
College of Business and Accountancy
Banilad, Cebu City

COURSE OUTLINE
Prepared by: Justin Val R. Virtudazo

ECON 122- MACROECONOMICS (3 units)

2:30pm – 3:30pm (Mondays, Wednesdays and Fridays)

COURSE DESCRIPTION
Provides an introduction to the dynamic micro foundation of macroeconomics, and demonstrates
how we can utilise these foundations, to understand the trends and fluctuations of
macroeconomic aggregates like national output, unemployment, inflation and interest rates, and
to predict the outcome of alternative government policies related to current economic problems
of Philippines and the rest of the world.

I. ECONOMICS IN GENERAL

A. Introduction
1. Definition
2. Microeconomics vs. Macroeconomics
3. Why Study Economics?
B. Economic Behavior
C. History of Economics

II. INTRODUCTION TO MICROECONOMICS

A. Economic Problems
B. Resources
1. Land
2. Labor
3. Capital
4. Entrepreneurship
C. Production Possibilities Models
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D. Market Systems

III. MACROECONOMIC GOALS

A. Employment
1. Unemployed vs. Employed vs. Discouraged Workers
2. What is Unemployment?
3. Unemployment Rate
4. Labor Force
5. Types of Unemployment
- Frictional Unemployment
- Structural Unemployment
- Cyclical Unemployment
6. Minimum Wage in connection with Unemployment
7. Efficiency Wage
B. Price Stability
1. Inflation and Deflation
2. Purchasing Power
3. Consumer Price Index (CPI)
- Calculating CPI
4. Hyperinflation
5. Interest Rates
- Real
- Nominal
C. High rate of Economic Growth
- Economic Fluctuations
- Business Cycle

IV. MEASURING ECONOMIC PERFORMANCE

A. Gross Domestic Product (GDP)

- Consumption
- Investment
- Government Spending
- Export and Import
B. Other Measures of Economic Performance
C. Problems in Calculating GDP
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V. ECONOMIC GROWTH IN THE GLOBAL ECONOMY

A. Economic Growth
B. Determinants of Economic Growth
C. Public Policy

VI. MACROECONOMIC MODELS

A. Aggregate Demand
B. Aggregate Supply
C. Macroeconomic Equilibrium

VII. FISCAL POLICY

A. The Multiplier Effect

B. Obstacles to and Effective Fiscal Policy
C. National Debt

VIII. MONETARY INSTITUTIONS

A. Money
B. Currency
C. Banks
D. Money Multiplier

IX. CENTRAL BANKING

A. Change in Money Supply

B. Open Market Operations
C. Reserve Requirements
D. Money Policies
1. Expansionary Monetary Policy
2. Contractionary Monetary Policy

X. ISSUES IN MACROECONOMIC THEORY AND POLICY

XI. THE GLOBAL ECONOMY

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REFERENCES:
Primary: “Exploration of Macroeconomics” 5th Edition by Robert L. Sexton, 2012
“Introductory Macroeconomics” by Cristobal Pagoso et. al, 2013
Secondary: “Macroeconomics” Updated Fifth Edition by Olivier Blanchard, 2010
“The MACRO Economy Today” Fourteenth Edition by Bradley R. Schiller, 2016
Economic Journals
Internet Sources

*****NOTHING FOLLOWS*****
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