LSP340 - Macroeconomics - Theory & Practice

Outline information
Semester
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Last revision date May 25, 2020 1:27:51 AM
Last review date Jul 20, 2020 12:45:57 PM

Subject Title
Macroeconomics - Theory & Practice

Subject Description
This subject examines the definition and measurement of principal aggregate economic indicators including gross domestic product, unemployment and inflation. It also explains how the level of economic activity, prices, interest rates and the value of the Canadian dollar are determined under different internal and external environments and under various government policies. A basic open-economy model is constructed, and the impact of alternative fiscal, monetary and trade policies on macro economic variables are analyzed and appraised.

Credit Status
One upper-level Liberal Studies elective credit.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

  1. Appraise the principal macroeconomic indicators and the methods utilized for their measurement.
  2. Differentiate the sources of productivity and assess the implications for sustained growth with respect to classical, neoclassical, and new growth theories and their respective policy implications.
  3. Assess the flows of investment and saving in financial markets and institutions in closed, public, and open economies.
  4. Outline the role of money and its functions, illustrate the functions of the banking system, model the creation of money and the money multiplier, and compare the influence of both money supply on interest rates in the short run and money growth on inflation in the long run.
  5. Develop the Keynesian model with the expenditure multiplier.
  6. Construct the aggregate demand/aggregate supply model and contrast it with the aggregate expenditure model.
  7. Explain how levels of real GDP and price level are determined, and how unemployment, inflation, and business cycles arise, contextualized in the principal macroeconomic schools of thought, including the Classical, Keynesian, and Monetarist.
  8. Appraise the effects of fiscal policy, automatic stabilizers, and government stimulus on macroeconomic variables.
  9. Analyze the effects of conventional monetary policy on macroeconomic variables utilizing the transmission mechanism, and examine the need for extraordinary or unconventional monetary policy strategy.
  10. Evaluate exchange rate policies and the balance of payments in the global context.

Essential Employability Skills
Communicate clearly, concisely and correctly in the written, spoken and visual form that fulfils the purpose and meets the needs of the audience.

Respond to written, spoken, or visual messages in a manner that ensures effective communication.

Apply a systematic approach to solve problems.

Use a variety of thinking skills to anticipate and solve problems.

Locate, select, organize, and document information using appropriate technology and information systems.

Analyze, evaluate, and apply relevant information from a variety of sources.

Show respect for diverse opinions, values, belief systems, and contributions of others.

Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.

Manage the use of time and other resources to complete projects.

Take responsibility for one's own actions, decisions, and consequences.

Academic Integrity
Seneca upholds a learning community that values academic integrity, honesty, fairness, trust, respect, responsibility and courage. These values enhance Seneca's commitment to deliver high-quality education and teaching excellence, while supporting a positive learning environment. Ensure that you are aware of Seneca's Academic Integrity Policy which can be found at: http://www.senecacollege.ca/about/policies/academic-integrity-policy.html Review section 2 of the policy for details regarding approaches to supporting integrity. Section 2.3 and Appendix B of the policy describe various sanctions that can be applied, if there is suspected academic misconduct (e.g., contract cheating, cheating, falsification, impersonation or plagiarism).

Please visit the Academic Integrity website http://open2.senecac.on.ca/sites/academic-integrity/for-students to understand and learn more about how to prepare and submit work so that it supports academic integrity, and to avoid academic misconduct.

Discrimination/Harassment
All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at student.conduct@senecacollege.ca.

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Accessibility Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.