ECON 2103 - Macroeconomic Theory I

Basic Information

Course Code:

ECON 2103

Course Name:

Macroeconomic Theory I

Language of Instruction:

English

Course Type:

Class

Course Level:

Bachelor

ECTS:

7.00

Instructor:

Doç. Dr. Kemal ERKİŞİ

Course Objectives

This course aims to provide students with a solid foundation in the fundamental concepts, principles, and analytical tools of macroeconomic theory. It examines the measurement of aggregate economic activity; the determinants and implications of unemployment, inflation, and long-run economic growth; and the relationships among saving, investment, and the financial system. The course also analyzes short-run macroeconomic fluctuations through the income–expenditure and aggregate demand–aggregate supply frameworks, introduces the basic role of fiscal policy, and examines money, banking, and the central bank in macroeconomic stabilization. Finally, it introduces the basic concepts of open-economy macroeconomics and prepares students for more advanced macroeconomic theory and policy analysis.

Course Content

This course covers the fundamental concepts and analytical tools of macroeconomics, including macroeconomic measurement and national income accounting, unemployment, inflation, long-run economic growth, saving, investment, and the financial system. It also examines the multiplier process, consumption and investment spending, the income–expenditure model, aggregate demand and aggregate supply, and macroeconomic equilibrium. The course introduces the basic tools of fiscal policy and the foundations of money, banking, central banking, and monetary policy. It concludes with an introduction to open-economy macroeconomics, including external balance, capital flows, and exchange rates.

Prerequisites / Corequisites

None.

Course Books / Materials / Recommended Resources

Textbook:Krugman, P., & Wells, R. (2014). Macroeconomics in Modules. Worth Publishers.Recommended Readings:Mishkin, F. S. (2015). Macroeconomics: Policy and Practice (2nd Global ed.). Pearson.Mankiw, N. G. (2019). Macroeconomics. Macmillan Higher Education.Taylor, J. B., & Weerapana, A. (2020). Principles of Macroeconomics (Version 9.0). FlatWorld.Other Materials:Lecture notes, presentation materials, and additional resources provided by the instructor.

Learning Outcomes

Code	Description
LO1	Explain the fundamental concepts and indicators used to measure macroeconomic performance, including GDP, unemployment, and inflation.
LO2	Analyze the role of saving, investment, and financial markets in the determination of national income and economic growth.
LO3	Apply aggregate demand and aggregate supply models to interpret short-run and long-run macroeconomic fluctuations.
LO4	Evaluate the effectiveness and limitations of fiscal and monetary policies in achieving macroeconomic stability.
LO5	Examine the interaction between domestic economic activity and the global economy, including trade balances, exchange rates, and international capital flows.

Weekly Course Content

Week	Content
1	Introduction to Macroeconomics and Basic Concepts: Introduction to the scope of macroeconomics, fundamental economic concepts, and macroeconomic thinking.
2	Economic Foundations for Macroeconomics: Review of production possibilities, opportunity cost, supply, demand, and market equilibrium.
3	Macroeconomic Measurement: Examination of national income accounting, GDP, nominal and real GDP, and key macroeconomic indicators.
4	Unemployment: Examination of basic labor-market concepts, the measurement and types of unemployment, and their macroeconomic implications.
5	Inflation: Examination of the price level, measurement and costs of inflation, and its main macroeconomic effects.
6	Long-Run Economic Growth: Examination of real GDP per capita, productivity, and the main determinants of long-run economic growth.
7	Saving, Investment, and the Financial System: Examination of the saving-investment relationship, the market for loanable funds, interest rates, and the role of the financial system.
8	Midterm Exam
9	The Multiplier, Consumption, and Investment Spending: Examination of the marginal propensity to consume, the multiplier process, and the main determinants of consumption and investment spending.
10	The Income–Expenditure Model: Examination of planned aggregate spending, income–expenditure equilibrium, and the inventory adjustment process.
11	Aggregate Demand: Examination of the aggregate demand curve, the reasons for its slope, and the factors that shift aggregate demand.
12	Aggregate Supply and the AD–AS Model: Examination of short-run and long-run aggregate supply, macroeconomic equilibrium, and demand and supply shocks.
13	Macroeconomic Stabilization and Fiscal Policy: Introduction to the main tools of fiscal policy and their effects on aggregate demand and economic activity.
14	Money, Banking, and the Central Bank: Examination of the functions of money, the banking system, money creation, and the role of the central bank in the economy.
15	Introduction to Open-Economy Macroeconomics and Course Review: Introduction to external balance, capital flows, and exchange rates, together with an integrated review of the main macroeconomic relationships covered in the course.

Workload Calculation

Activity	Count	Duration (Hours)	Total
Attendance	14	3.00	42.00
Pre-Class Individual Study	14	6.00	84.00
Midterm Exam/Preparation	1	20.00	20.00
Final Exam/Preparation	1	30.00	30.00
Quiz Preparation	2	7.00	14.00
Homework	1	20.00	20.00
Total Workload (Hours)			210
ECTS Credit (Workload / 25)			7

Assessment

#	Assessment Type	Contribution (%)
1	Quiz	%10
2	Midterm Exam	%30
3	Quiz	%10
4	Final Exam	%50
TOTAL		%100

PO - LO Matrix

PO \ LO	LO1	LO2	LO3	LO4	LO5
PO-1
PO-2
PO-3
PO-4
PO-5
PO-6
PO-7
PO-8
PO-9
PO-10
PO-11
PO-12

1

Low Contribution

2

Medium Contribution

3

High Contribution

Teaching and Learning Methods

#	Method Name	Description	Tools
1	Lecture (expository teaching), interactive discussion	Listening and taking notes.	Standard classroom technologies, multimedia tools (projector, computer, digital presentations)
2	Small Group Discussion	Listening and comprehension, processing observations/situations, critical thinking, question development	Standard classroom technologies, multimedia tools, projector, computer, overhead projector
3	Controversial Course	Listening and comprehension, critical thinking	Standard classroom technologies, multimedia tools, projector, computer, overhead projector
4	Homework	Solving and analyzing homework questions using a computer and Excel.	Computer

Academic Integrity and Artificial Intelligence

Students are required to comply with the principles of academic integrity in this course. They are expected to avoid plagiarism, cheating, unauthorized collaboration, and any form of academic misconduct in assignments, exams, presentations, and other academic work. Artificial intelligence tools may only be used when explicitly permitted by the instructor and within the specified limits. Even when such use is permitted, AI-generated content cannot replace the student’s own academic judgment and responsibility.

Sustainable Development Goals