Principles of Macroeconomics

Econ 102
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 » Objectives - 

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After completing this subject, the student will be aware of basic concepts of macroeconomic theory such as domestic income, domestic product, inflation, money and banking, unemployment, interest rate and exchange rate, as he will learn the basics of demand and supply in macroeconomic. Also, he will be aware of the problems the policy makers encounter while dealing with economic problems generally. Furthermore, he will learn that how to use fiscal and monetary policies in order to solve the problems like rising prices, unemployment and the obstacles which stand in the way of development and growth.

 

 » Title of book

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Principles of Macroeconomics – Concepts & Basics (Dr. Ahmad Al-Muhaimeed & Dr. Mohammad Al-Jarrah)
Principles of Macroeconomics (Dr. Faez Al-Habib)

  

 » Course

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1st week:
Introduction:
 Concept of economics
 Macroeconomics & Microeconomics and relationship between the two
2nd, 3rd and 4th week:
 Domestic income and standard methods
 The circular flow of economic activity
 Domestic product: Concept – Standard Methods – Problems of standard methods
 Price indices and the inhibitor of Domestic product
5th, 6th and 7th week:
Determinants of Domestic Income:
 The economic models of determination of the level of equilibrium income comprised of:
a) Two sectors
b) Three sectors
c) Four sectors

8th, 9th and 10th week:
Money and Banking:
 Definition of money, its evolution and functions
 About commercial banks, its evolution and functions
 About Islamic banks, its functions and role in the economic activity as well as its comparison with commercial banks
 Commercial banks and monetary policies
Note: As for monetary, fiscal policies, its tools as well as its impact on the economic activity is concerned, the attention must be paid to the instructions of the lecturer during explanation of the subject.

11th week:
Inflation:
 definition, categories, reasons, impacts and the methods of treatment

12th and 13th week:
Foreign Trade:
 Concept of foreign trade, its advantages, absolute advantages and comparative advantages.
 Trade Balance, exchange rate and the balance of payments

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