UNIVERSITY OF GHANA

(All rights reserved)

DEPARTMENT OF ECONOMICS
SECOND SEMESTER 2021/2022 ACADEMIC YEAR

COURSE SYLLABUS
ECON 314: MACROECONOMICS II (3 CREDITS)

LECTURE PERIOD AND VENUE:

Main Campus
Group A: Wednesday, 1.30pm – 3.20pm; NNB1
Group B: Friday, 7.30am – 9:20am; NNB2

Accra City Campus

Friday, 12.10pm – 2.10pm; First Floor Hall

COURSE INSTRUCTORS
Dr. Priscilla Twumasi Baffour [PTB]
Office Location: Economics Department W15A
Office Hours: Thursday (10.30am – 12.00 pm)
Email: ptbaffour@ug.edu.gh

Dr. Rebecca Nana Yaa Ayifah [RNYA]

Office Location: Economic Policy Management (EPM) Building
Office Hours: Wednesday (10:00 am – 1:00 pm)
Email: rnayifah@ug.edu.gh

COURSE PRE-REQUISITES
Students must have previously read ECON 211 and ECON 212. Additionally, a fairly good
knowledge of algebra would be helpful.

COURSE DESCRIPTION
This course is intended to provide a rigorous framework for understanding modern
macroeconomics, by emphasising on the core constituents of the macroeconomic framework.
Thus, the course would focus on the three main components of aggregate demand,
consumption, investment and the government sector. Further, the course extends the basic
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understanding of money by examining in detail the demand for and supply of money. Finally,
the course examines the policy dilemmas involved in addressing the problem of inflation and
unemployment.
RECOMMENDED TEXTS
1. Dornbusch, R., S. Fischer and R. Startz (2011). Macroeconomics, 11th Edition, Irwin
McGraw-Hill.

2. Mankiw, N.G. (2013). Macroeconomics, 8th Edition, Worth Publishers.

3. Abel, A, Bernanke, B, and McNabb, Robert (1998). Macroeconomics, European

Edition, Pearson Education.

4. Branson, W.H. (1997). Macroeconomic Theory and Policy, 3rd Edition, Harper and
Row.
** Further readings and additional materials for the course will be provided during the course
COURSE GOALS
The course is designed with the following goals:
 To provide students with a better understanding of the behavioural foundations of
modern macroeconomics.
 To examine in detail the micro-foundations of consumption and consumer expenditure
in the macroeconomic context.
 To provide a better understanding of investment behaviour in an economy
 To explore the various options governments face in financing expenditure and how
that relates to the level of public debt in an economy.
 To understand the trade-off inherent in addressing the twin problems of inflation and
unemployment.
LEARNING OUTCOMES
After the successful completion of this course the student should be able to do the following:

 Explain the main theories explaining consumer expenditure

 Understand the major factors affecting investment behaviour in an economy
 Understand the various motives underlying the demand for money and how central
banks affect the supply of money
 Improved understanding of fiscal policy and its macroeconomic effects, especially in
relation to fiscal deficits and the public debt.
 Understand the costs of inflation and unemployment in an economy

COURSE DELIVERY
The course would be delivered largely through lectures and presentations on topics detailed in
the course delivery plan. These lectures will usually be for the duration of two hours each
week. Students are expected to follow-up with individual study of the main recommended
texts.
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PLAGIARISM POLICY
Plagiarism in any form is unacceptable in the University of Ghana and shall be treated as a
serious offence. Appropriate sanctions, as stipulated in the Plagiarism Policy, will be applied
when students are found to have violated the Plagiarism Policy of the University of Ghana.
ASSESSMENT AND GRADING
Mid-Semester Test/Interim Assessment................................. 30%
Interim Assessment is expected to take place between the 6th and 11th week of the semester.
Official date and venue to be announced in the course of semester.
Final Exam...............................................................................70%

GRADING SCALE: Students’ performance on the course shall be graded as follows:

COURSE DELIVERY PLAN

Lecture Broad Topic Discussion
No.

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1 Introduction and A presentation of an overview of the course, the
overview to the organisation of lectures grading and other related matters.
course [RNYA]
2 Consumption and A discussion on what drives consumption and the link
Consumer between consumption and income. Mankiw Chp 17;
Expenditure Dornbusch, R., S. Fischer and R. Startz Chp. 14 [RNYA]
3 Consumption and A presentation of advanced theories of consumption.
Consumer Mankiw Chp 17; Dornbusch, R., S. Fischer and R. Startz
Expenditure Chp. 14 [RNYA]
4 Investment This lecture explores in detail the underlying dynamics that
affects investment fluctuations in the economy. Mankiw
18: Dornbusch, R., S. Fischer and R. Startz Chp. 15
[RNYA]
5 Investment Examination of various theories of investment spending,
emphasising on the microeconomic view of investment
demand. Mankiw 18: Dornbusch, R., S. Fischer and R.
Startz Chp. 15 [RNYA]
6 The Demand for We discuss the various motives for holding money in a
Money modern economy, liquidity preference, Keyne’s view of
aggregate demand for money. Dornbusch, R., S. Fischer
and R. Startz Chp. 16 [RNYA]
7 The Demand for Theories of money demand, a discussion on quantity
Money theory of money and Post Keynesian theories of money
demand. Dornbusch, R., S. Fischer and R. Startz Chp. 16
[PTB]
8 The Supply of We discuss money supply, monetary aggregates, the
Money instruments of monetary policy and the mechanism of
monetary expansion. Chp. 19 Mankiw [PTB]
9 The Supply of We continue our discussion on money supply and look at
Money the determinants of money supply. Chp. 19 Mankiw [PTB]
10 Inflation, Output We begin our discussion of this very important aspect of
and Unemployment macroeconomic policy by looking at the Phillips curve.
Mankiw Chp 13: Abel, A, Bernanke, B, and McNabb,
Robert Chp. 12 [PTB]
11 Inflation, Output We look at inflation and unemployment separately, and
and Unemployment then consider the costs that each imposes on society.
Mankiw Chp 13: Abel, A, Bernanke, B, and McNabb,
Robert Chp. 12 [PTB]
12 The Government A discussion on government budget constraint, fiscal
Sector policy its macroeconomic effects. Mankiw Chp 16: Abel, A,
Bernanke, B, and McNabb, Robert Chp. 12 [PTB]
13 The Government A continuation of the discussion on government sector by
Sector looking at the various ways to finance fiscal deficit, and
their implications on the national debt. Mankiw Chp 16:
Abel, A, Bernanke, B, and McNabb, Robert Chp. 12 [PTB]

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