Introduction to Macroeconomics

University of Waterloo

This course introduces students to the measurement and behaviour of key macroeconomic variables both in Canada and around the world. Topics include national accounts, inflation, interest rates, wages, international balance of payments, business cycles, growth, employment, unemployment, poverty, and inequality.
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ECON102 Syllabus for Maryann Vaughan — Fall 2018

University of Waterloo
Department of Economics
ECON 102, Section 001
Introduction to Macroeconomics
Fall 2018
Tuesday and Thursday, 10:00 a.m. 11:20 a.m.
Classroom: DC 1351
Instructor Information
Instructor: M. Vaughan
Office: HH 102
Office Hours: Wednesday 9:00 a.m. 12:00 p.m., or by appointment.
Phone: ext. 36825
Notes on office hours or contacting instructor
When sending email, “Econ 102" must appear in the subject line and the message must
include your full name and ID number.
Please use email for administrative concerns only. I will be available during office hours,
or by appointment, to discuss course material.
Course Outline
This course outline will be available at two locations for the duration of the term:
1. Department of Economics website
2. LEARN website
Course Description
This course provides an introduction to macroeconomic analysis relevant for understanding the
Canadian economy as a whole. The determinants of national output, the unemployment rate,
the price level (inflation), interest rates, the money supply and the balance of payments, and
the role of government fiscal and monetary policy are the main topics covered.
Course Objectives
Upon completion of this course, students should be able to:
Describe the basic macroeconomic variables.
Understand the models that determine the basic macroeconomic variables.
Distinguish between the long run and the short run.
Understand how the government and the central bank can influence outcomes in the economy.
Understand current macroeconomic events.
Required Text
Parkin, M. and R. Bade, Macroeconomics Canada In the Global Environment, 10th
Canadian Edition. Toronto: Pearson, 2019.
Optional Study Guide
Cohen, Avi J., Macroeconomics, Flex Text. Toronto: Pearson, 2019.
Additional Resources Available on LEARN
The PPT overhead slides are posted on LEARN at: 1189, ECON 102, Fall 2018
The LEARN site is down occasionally. Download the slides to your computer. Always be
Students writing tests and exams are responsible for saving course materials on Learn
before the access to their courses is shut off (normally on the first day of classes of the
next term).
Notes from the UW Bookstore
ECON 102
Option 1: Macroeconomics FlexText plus MyLab Economics with Pearson eText ($79.00)
ISBN: 9780135284667
Option 2: Macroeconomics (Loose leaf, binder Ready), MyLab Economics & Flextext
($110.00) ISBN: 9780135284674
Option 3: Macroeconomics (Paperback) Textbook, MyLab Economics & FlexText ($149.00)
ISBN: 9780135284681
Course Outline
Part 1: Introduction
Chapter 1: What Is Economics?
Students are responsible for reading the material in Chapter 1 on their own. I will post some
summary material on Learn.
OMIT “Economists in the Economy” pgs. 12 – 13 (For testing purposes.)
OMIT Appendix pgs. 15 25
OMIT Mathematical Note pgs. 26 27
Chapter 2: The Economic Problem
OMIT “Using Resources Efficiently” pgs. 37 39
OMIT “Gains From Trade” pgs. 40 44
Part 2: Monitoring Macroeconomic Performance
Chapter 4: Monitoring the Value of Production: GDP
OMIT “The Income Approach” pg. 92
OMIT “The Standard of Living Across Countries” pg. 96
OMIT “The Bottom Line” pg. 99
OMIT Appendix pgs. 102 103
OMIT Mathematical Note pgs. 104 - 105
Chapter 5: Monitoring Jobs and Inflation
OMIT “The Involuntary Part-Time Rate pg. 114
OMIT “Alternative Measures of Unemployment” pg. 116
OMIT “Chained Price Index for Consumption” pg. 124
Part 3: Macroeconomic Trends
Chapter 7: Finance, Saving, and Investment
OMIT “The Ricardo-Barro Effect” pg. 175
Chapter 8: Money, the Price Level, and Inflation
OMIT Mathematical Note pgs. 206 207
Chapter 9: The Exchange Rate and the Balance of Payments
OMIT “Arbitrage, Speculation, and Market Fudamentals” pg. 222 – mid 224 (Do NOT
omit The Real Exchange Rate, Price Levels and Money pg. 224)
OMIT “Financing International Trade” pgs. 228 - 233
Part 4: Macroeconomic Fluctuations
Chapter 10: Aggregate Supply and Aggregate Demand
Chapter 11: Expenditure Multipliers
OMIT “The Multiplier Process” pg. 279
OMIT “Business Cycle Turning Points” pg. 280
OMIT “The Multiplier and the Price Level” pgs. 281 - 285
OMIT Mathematical Note pgs. 288 291
Chapter 12: The Business Cycle, Inflation, and Deflation
OMIT “The Business Cycle” pgs. 298 302
OMIT “The Phillips Curve” pgs. 312 – 313
Part 5: Macroeconomic Policy
Chapter 13: Fiscal Policy
Chapter 14: Monetary Policy
OMIT “Loose Links and Long and Variable Lags” pgs. 359 – 360
OMIT “Financial Crisis: Cure and Prevention” pgs. 361 - 363
Tentative Class Schedule
The following list is meant as a rough guideline. Short-term goals will be announced regularly.
Week 1
Sept 6
The Economic Problem
Week 2
Sept 11 and 13
Measuring GDP and Economic
Monitoring Jobs and Inflation
4, 5
Week 3
Sept 18 and 20
Monitoring Jobs and Inflation
Finance, Saving and Investment
5, 7
Week 4
Sept 25 and 27
Finance, Saving and Investment
Money, the Price Level, and Inflation
7, 8
Week 5
Oct 2 and 4
Money, the Price Level, and Inflation
OCTOBER 4, 2018
In class time.
Chapters 1, 2,
4, 5, 7
Week 6
Oct 11
Money, the Price Level, and Inflation
Week 7
Oct 16 and 18
The Exchange Rate and the Balance
of Payments
Aggregate Supply and Aggregate
9, 10
Week 8
Oct 23 and 25
Aggregate Supply and Aggregate
Expenditure Multipliers
10, 11
Week 9
Oct 30 and Nov 1
Expenditure Multipliers
1, 2018
In class time.
Chapters 8, 9,
Week 10
Nov 6 and 8
The Business Cycle, Inflation, and
Fiscal Policy
12, 13
Week 11
Nov 13 and 15
Fiscal Policy
Week 12
Week 13
Nov 20 and 22
Nov 27 and 29
Monetary Policy
Monetary Policy
Course Requirements and Assessment
The course grade will be based on two midterm exams and a final examination which will be
held during the Official Examination Schedule. The breakdown is as follows:
Date of Evaluation
Ch 1, 2, 4, 5, 7
Thurs., Oct. 4, in class.
Ch 8 10
Thurs., Nov. 1, in class.
TBA (between Dec 6
Dec. 21)
The format for both term tests and the final exam will be multiple choice questions.
The term tests will be written in class time.
Term test grades will be posted on Learn.
The final exam period for Fall Term 2018 is December 6 to December 21 inclusive.
Students are expected to be available during this time. Travel plans are not acceptable
grounds for granting an alternative final examination time. (See Registrar’s Office
Examinations and Related Matters)
The date and time for the final exam will be determined by the Registrar’s Office.
The final exam schedule is posted online, will be announced in class, and posted on
Only the Registrar’s Office can issue final grades
Examination Policy
Missing a Midterm Due to Illness During the Term
Missing a midterm will automatically result in a grade of zero for that midterm. If the
illness can be documented with a UW Verification of Illness Form (the only acceptable
document), with approval you may transfer the weight of the missed midterm to the
final exam. This remedy is a privilege and not a right.
Immediately upon your return, please deliver to me a hard copy of your medical
The midterm schedule is set and will not be changed for any reason.
Missing the Final Exam Due to Illness
Missing the final exam is a very serious matter which automatically results in a grade of
zero for the final exam and possibly a failing grade for the course. Please carefully read
the Economics Department policy on deferred final exams for instructions.
No deferred final exam will be provided for students who missed all the exams
(including the final exam) in this course. Deferred Final Exam Policy.
Submission of Exam Papers
Late submission of exam papers is not accepted and missed submissions will receive a
grade of zero for whatever reason.
Exam papers must be submitted in whole and on time in the exam room. Exam papers
(a) not submitted on time,
(b) submitted with missing pages,
(c) submitted elsewhere, with the exception of students with permission to write in the AS
(d) or not received at all
will receive a grade of zero for whatever reason.
It is the responsibility of students to ensure that they write exams in the location, date, and time
assigned to their section. Students writing exams in the wrong section
will be assessed a 20% penalty on the final exam grade. There will be
no accommodation for possible differences in exam material or content.
Fee-Arranged Issues
Students are responsible for administrative matters concerning their course registration
including fee arrangements. No make-up work or other remedies will be given for loss of
access to LEARN and academic consequences arising from administrative issues with the
Registrar’s Office.
Late Work
Information on Plagiarism Detection
Electronic Device Policy
Turn off all handheld devices and put them away for the duration of the lecture.
Laptop computers may only be used to view lecture material.
Photographic devices are not permitted in class due to copyright and privacy issues.
Audio or video recording devices are not permitted in class due to copyright and privacy
Attendance Policy
Class attendance is an integral part of the course. Although attendance is not formally taken, it
is critical for understanding the course material. Students are responsible for all material
covered whether they choose to attend lectures or not.
Classroom Protocols
I do NOT lend my lecture notes to students for any reason.
In order to maintain a learning environment in this classroom, I expect the highest level
of courtesy and professional behavior from every student. In particular, be punctual
and turn off all audible ringers on all devices during class.
As a courtesy to others, no eating in class please. If you have coffee, water, etc., please
dispose of your garbage when you leave the classroom.
No private conversations in class will be tolerated
Institutional-required statements for undergraduate course outlines approved by
Senate Undergraduate Council, April 14, 2009
Cross-listed course
Please note that a cross-listed course will count in all respective averages no matter under which rubric
it has been taken. For example, a PHIL/PSCI cross-list will count in a Philosophy major average, even if
the course was taken under the Political Science rubric.
Academic Integrity: In order to maintain a culture of academic integrity, members of the University of
Waterloo are expected to promote honesty, trust, fairness, respect and responsibility. See the
UWaterloo Academic Integritity Webpage ( and the
Arts Academic Integrity Office Webpage (
undergraduates/academic-responsibility) for more information.
Discipline: A student is expected to know what constitutes academic integrity, to avoid
committing academic offenses, and to take responsibility for his/her actions. A student who is
unsure whether an action constitutes an offense, or who needs help in learning how to avoid
offenses (e.g., plagiarism, cheating) or about “rules” for group work/collaboration should seek
guidance from the course professor, academic advisor, or the Undergraduate Associate Dean.
When misconduct has been found to have occurred, including writing exams in a section that
you are not registered in, disciplinary penalties will be imposed under Policy 71 Student
Discipline. For information on categories of offenses and types of penalties, students should
refer to Policy 71 - Student Discipline. For typical penalties check Guidelines for the Assessment
of Penalties (
Grievance: A student who believes that a decision affecting some aspect of his/her university life has
been unfair or unreasonable may have grounds for initiating a grievance. Read Policy 70 - Student
Petitions and Grievances, Section 4. In addition, read the Student Grievance Process for the
Faculty of Arts.
Appeals: A student may appeal the finding and/or penalty in a decision made under Policy 70 - Student
Petitions and Grievances (other than regarding a petition) or Policy 71 - Student Discipline if a ground for
an appeal can be established. Read Policy 72 - Student Appeals.
Other sources of information for students
Academic integrity (Arts) Academic Integrity Office (uWaterloo)
Accommodation for Students with Disabilities
Note for students with disabilities: The AccessAbility Services office, located in Needles Hall Room
1132, collaborates with all academic departments to arrange appropriate accommodations for students
with disabilities without compromising the academic integrity of the curriculum. If you require academic
accommodations to lessen the impact of your disability, please register with the AS office at the
beginning of each academic term.
Mental Health Support
All of us need a support system. The faculty and staff in Arts encourage students to seek out mental
health supports if they are needed.
On Campus
Counselling Services: counsellin[email protected] / 519-888-4567 xt 32655
MATES: one-to-one peer support program offered by Federation of Students (FEDS) and
Counselling Services
Health Services Emergency service: located across the creek form Student Life Centre
Off campus, 24/7
Good2Talk: Free confidential help line for post-secondary students. Phone: 1-866-925-5454
Grand River Hospital: Emergency care for mental health crisis. Phone: 519-749-433 ext. 6880
Here 24/7: Mental Health and Crisis Service Team. Phone: 1-844-437-3247
OK2BME: set of support services for lesbian, gay, bisexual, transgender or questioning teens in
Waterloo. Phone: 519-884-0000 extension 213
Full details can be found online at the Faculty of ARTS website
Download UWaterloo and regional mental health resources (PDF)
Download the WatSafe app to your phone to quickly access mental health support information
Territorial Acknowledgement
We acknowledge that we are living and working on the traditional territory of the Attawandaron
(also known as Neutral), Anishinaabe and Haudenosaunee peoples. The University of Waterloo is
situated on the Haldimand Tract, the land promised to the Six Nations that includes six miles on
each side of the Grand River.
For more information about the purpose of territorial acknowledgements, please see the CAUT Guide to
Acknowledging Traditional Territory (PDF).

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