1
University of Nicosia, Cyprus
ECON-262 Principles of Macroeconomics
SPRING-2016
Course Code
Course Title
Credits (ECTS)
Econ-262
Principles of
Macroeconomics
6
Department
Semester
Prerequisites
Finance and Economics Fall, Spring
ECON-261
Type of Course
Field
Language of Instruction
Required
Economics
English/Greek
Level of Course
Year of Study
Lecturer
1
st
Cycle
2
nd
Dr Spyros Hadjidakis
Mode of Delivery
Work Placement
Co-requisites
face-to-face
N/A
None
Course Days/Times
Course Venue
Student Consultation Hrs
Section 01: Mon/Wed
12.00 – 13.30
Section 02: Tue 15.00-
18.00
Section 03: Mon 18.00-
21
Section 01: ROUSSEAU
Section 02: PLATO
Section 03: ROUSSEAU
Mon: 11.00-12.00 and
16.00-18.00
Tue 14.00-15.00
Wed: 11.00-12.00
Telephone
Office
22-841681
EU204A Europa Bldg
Objectives of the Course:
The main objectives of the course are to:
Introduce the main macroeconomics variables (GDP, inflation, unemployment)
Introduce the aggregate demand – aggregate supply model
Distinguish between inflation and unemployment
Identify the fiscal and monetary policy tools
Introduce the balance of payments and exchange rates
2
Learning Outcomes:
After completion of the course students are expected to be able to:
Measure economic variables (GNP and its components, inflation, unemployment,
money supply, balance of payments, exchange rates)
Analyze the aggregate demand – aggregate supply model, the concept of the
multiplier and the business cycle
Identify the tools of monetary and fiscal policies, understand their effect on the
economy and appreciate the significant role of the Central Bank.
Explain the importance balance of payments, international trade and how the
value of foreign exchange is determined
Course Contents:
1. Gross Domestic Product
2. Economic Growth
3. Unemployment and Inflation
4. Aggregate Demand and Aggregate Supply
5. Equilibrium Expenditure and the Multiplier
6. Fiscal Policy
7. Money and Monetary Policy
8. Balance of Payments and the Exchange Rate
Teaching Methods:
Lectures, tutorials, practical exercises
Assessment Methods:
Final Examination (40 multiple choice questions)
50%
Mid-Term (30 multiple choice questions)
40%
Participation
10%
Required Textbooks:
Authors
Title
Publisher
Year ISBN
Parkin, M.
Powell, M., and
Matthews, K
Economics, 8
th
edition
Addison-
Wesley
2012 978-0-13-
204122-5
Recommended Textbooks/Reading:
Authors
Title
Publisher
Year ISBN
Spyros
Hadjidakis
On-line notes
2015
Attendance Regulations:
Students are required to attend all classes. Those who are absent for 20% or more of the
course will be withdrawn.
3
Grading Policy:
Letter Grade
Meaning
Numerical Grade
Grade Points
A
Excellent
93-100
4.0
A-
90-92
3.7
B+
Very Good
87-89
3.3
B
83-86
3.0
B-
80-82
2.7
C+
Good
77-79
2.3
C
73-76
2.0
C-
70-72
1.7
D+
Poor but Acceptable
67-69
1.3
D
63-66
1.0
D-
60-62
0.7
F
Failure
0-59
0.0
Schedule of Lectures and Assessment:
Week
Topic
Reading
Week 1
Introduction to macroeconomic issues, GDP
Ch. 20, 21
Weeks 2
GDP
Ch. 21
Week 3
Inflation and Unemployment
Ch. 22
Weeks 4-5
The Aggregate Supply-Aggregate Demand Model
Ch. 23
Week 6
Expenditure Multipliers – The Keynesian Short-Run
Model
Ch. 25
Week 7
Fiscal Policy
Ch. 26
Week 8
The Monetary System
Ch. 27
Week 9
Monetary Policy
Ch. 28
Week 10
Fiscal and Monetary Policy Mix
Ch. 29
Week 11
Economic Growth
Ch. 31
Week 12
Balance of Payments and Exchange Rates
Ch. 33
Final exams: May 23 – June 4
You can download, read and print out the PowerPoint slides from the Moodle
platform:
http://mynotes.intranet.unic.ac.cy/
Your username is your Student ID number. The password will be given to you by the
Computer Center.