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

E-mail

Office

22-841681

[e-mail]

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

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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.

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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.