Basic Information

Course Code:

ECON 2104

Course Name:

Macroeconomic Theory II

Language of Instruction:

English

Course Type:

Class

Course Level:

Bachelor

ECTS:

7.00

Instructor:

Doç. Dr. Kemal ERKİŞİ

Course Objectives

This course aims to equip students with the core analytical tools of macroeconomics to evaluate national economic policies and their implications for key macroeconomic objectives such as growth, inflation, employment, and external balance. It also examines the role of fiscal and monetary policy, as well as the interaction between the domestic economy and the changing international economic environment.

Course Content

This course covers the core topics of intermediate macroeconomic theory, including national income determination, unemployment, inflation, labor market equilibrium, economic growth, expectations, fiscal and monetary policy, and the interaction between domestic economies and the international economic environment. The course also examines macroeconomic fluctuations, policy debates, and the causes and consequences of financial crises within both closed and open economy frameworks.

Prerequisites / Corequisites

None.

Course Books / Materials / Recommended Resources

The course will use Paul Krugman and Robin Wells’ Macroeconomics in Modules as a core reference, together with supplementary sources including Frederic S. Mishkin’s Macroeconomics: Policy and Practice, N. Gregory Mankiw’s Macroeconomics, and John B. Taylor and Akila Weerapana’s Principles of Macroeconomics. Lecture notes and additional materials provided by the instructor will also be used.

Learning Outcomes

Code	Description
LO1	Explain the core concepts, models, and analytical tools of intermediate macroeconomics
LO2	Analyze macroeconomic issues such as inflation, unemployment, economic growth, exchange rates, and external balance
LO3	Analyzes and evaluates macroeconomic equilibrium, output gaps, and the effects of monetary and fiscal policies within the framework of the Keynesian income-expenditure model, the AS–AD model, and the IS–LM model.
LO4	Interpret the interactions between goods, financial, and labor markets within closed and open economy frameworks.
LO5	Assess the effects of fiscal and monetary policies, as well as macroeconomic crises, in national and international contexts.

Weekly Course Content

Week	Content
1	Introduction to Macroeconomic Theory II and the Goods Market: Overview of the course and the basic structure of goods market equilibrium.
2	Financial Markets and the IS-LM Framework: Analysis of equilibrium in goods and financial markets through the IS-LM model.
3	The Extended IS-LM Model and Policy Analysis: Extension of the IS-LM framework and evaluation of policy effects in the short run.
4	The Labor Market and the IS-LM-PC Model: Examination of labor market equilibrium and the relation between output, unemployment, and inflation.
5	Saving, Capital Accumulation, and Output: Discussion of the role of saving and capital accumulation in determining output over time.
6	Technological Progress and Growth: Analysis of how technological change affects long-run economic growth.
7	Expectations, Consumption, and Investment: Introduction to the role of expectations in shaping consumption and investment decisions.
8	MIDTERM EXAM
9	Expectations, Output, and Policy: Evaluation of how expectations influence output and the effectiveness of macroeconomic policies.
10	Openness in Goods and Financial Markets: Introduction to open economy macroeconomics and the effects of international integration.
11	Output, the Interest Rate, and the Exchange Rate: Examination of the relationship between output, interest rates, and exchange rates in an open economy.
12	Fiscal Policy in Closed and Open Economies: Analysis of fiscal policy tools and their macroeconomic effects under different economic settings.
13	Monetary Policy and Central Banking: Discussion of monetary policy objectives, instruments, and the role of central banks.
14	International Macroeconomic Policy Coordination: Evaluation of international policy interactions and growth in the global economy.
15	Global Financial Crises and Macroeconomic Outcomes: Analysis of the causes and macroeconomic consequences of global financial crises.

Workload Calculation

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

Assessment

#	Assessment Type	Contribution (%)
1	Midterm Exam	%30
2	Quiz	%5
3	Quiz	%5
4	Homework	%10
5	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	Controversial Course	Listening and comprehension, critical thinking	Standard classroom technologies, multimedia tools, projector, computer, overhead projector
3	Small Group Discussion	Listening and comprehension, processing observations/situations, critical thinking, question development	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