Macro-Economic Theory I
- Social Sciences
- 300 level
- 3 credit units
- 179 pages
- 23 units
This course, Macroeconomics Theory (ECO301), is a semester core course designed for third-year economics students. It provides an in-depth understanding of macroeconomic theory, covering topics such as saving, consumption, investment, national income models, and classical and Keynesian systems. The course also explores the theory of money, macroeconomic policy models, price levels, internal and external balance, and economic growth theory. It aims to equip students with critical thinking skills and the ability to evaluate economic arguments.
About this course
- Difficulty
- Intermediate
- Study hours
- 45 hours
- Maths
- Intermediate
- Content
- Theoretical
- Practical work
- No
- Assignments
- Tutor Marked Assignments
- Final Examination
What you'll read
The real module and unit structure of ECO341, taken from the course material NOUN publishes.
One paragraph, so you can see how it reads
ECO341 · UNIT 1: OVERVIEW OF MACROECONOMICS CONCEPT
Macroeconomics concept was introduced by Ragnar Frisch in 1933 during the period of great economic depression, which was globally applies to be relations among broad economic aggregates.
What you should be able to do
- Understand the basic concepts of macroeconomics.
- Analyze national income models.
- Evaluate the theories of consumption and saving.
- Explain the determinants of investment.
- Discuss the functions of money and the banking system.
What it prepares you for
- Economist
- Financial Analyst
- Policy Analyst
- Market Research Analyst
- Investment Banker
- Banking
- Finance
- Government
- Consulting
- Research
Where it gets hard
The units students slow down on, and what makes each one heavy.
- Module 2:
Unit 3: The Theories of Consumption
Theories of consumption require understanding of different economic perspectives and their underlying assumptions, making it challenging to differentiate and apply them correctly.
- Module 3:
Unit 3: Some Selected Theories of Investment
The accelerator theory and its flexible variations involve complex mathematical relationships and time lags, making it difficult to grasp the dynamic effects on investment.
- Module 5:
Unit 3: Demand and Supply of Money
Understanding the quantity theory of money requires grasping the relationship between money supply, velocity, price level, and real output, which can be challenging due to the underlying assumptions.
A suggested way through it
13 weeks, about 42 hours in total. Yours will differ.
- Week 1Module 1:
Unit 1: Macroeconomics Concept: An Overview · 2 hours
Define macroeconomics and its scope.. Distinguish between macroeconomics and microeconomics.. Discuss the contributions of key figures like Ragnar Frisch and John Maynard Keynes..
Unit 2: Basic Tools of Macroeconomic Analysis. · 2 hours
Identify and explain the basic tools of macroeconomic analysis: verbal statements, graphs, and equations.. Practice using graphs to illustrate economic relationships.. Understand the application of mathematical models in macroeconomics..
- Week 2Module 1:
Unit 3: Macro Statics, Macro Dynamics and Comparative Statics · 3 hours
Differentiate between macro statics, macro dynamics, and comparative statics.. Analyze economic situations using each of these methods.. Understand the limitations of each approach..
- Week 3Module 2:
Unit 1: The Concept of Consumption and Savings · 2 hours
Define consumption and saving.. Explain the consumption and saving functions.. Understand the relationship between consumption, saving, and income..
Unit 2: Determinants and Derivations of Consumption and Saving functions and Graph (Curves) · 2 hours
Derive consumption and saving functions.. Identify the determinants of aggregate saving and consumption expenditure.. Analyze the relationship between consumption and saving..
- Week 4Module 2:
Unit 3: The Theories of Consumption · 3 hours
Compare and contrast the absolute income hypothesis, relative income hypothesis, permanent income hypothesis, and life cycle income hypothesis.. Understand the theoretical factors that influence consumption..
- Week 5Module 2:
Unit 4: The Theories of Interest Rate · 3 hours
Compare and contrast the classical theory of interest, the loanable funds theory, the Keynesian theory, and the modern theory of interest.. Understand the IS-LM framework..
- Week 6Module 3:
Unit 1: Concept of Investment: An Introduction · 2 hours
Define investment and its components.. Explain the investment function and its graph.. Understand the relationship between savings and investment..
Unit 2: Types and Determinants of Investment. · 2 hours
Distinguish between autonomous and induced investment.. Identify the determinants of investment function.. Understand the theoretical determinants of investment..
- Week 7Module 3:
Unit 3: Some Selected Theories of Investment. · 3 hours
Compare and contrast the accelerator theory of investment, the flexible accelerator theory, and financial theories of investment.. Understand the role of profits and cash flow in investment decisions..
- Week 8Module 4:
Unit 1: National Income Models: An Overview · 3 hours
Explain national income models in closed and open economies.. Define national income concepts such as GDP, GNP, NNP, NI, PI, and Yd.. Compare and contrast Classical and Keynesian models..
- Week 9Module 4:
Unit 2: Concept of Multiplier · 3 hours
Define the concept of multiplier.. Illustrate the multiplier effect geometrically.. Determine the multiplier algebraically..
- Week 10Module 4:
Unit 3: Inflationary and Deflationary Gaps · 3 hours
Define full employment equilibrium.. Explain inflationary and deflationary gaps.. Understand the causes and consequences of these gaps..
- Week 11Module 5:
Unit 1: Money and the Barter System · 3 hours
Define money and the barter system.. Discuss the problems associated with the barter system.. Explain the relationship between the barter system and counter trade.. Discuss the features and functions of money..
- Week 12Module 5:
Unit 2: Evolution and Nature of Money · 3 hours
Explain the historical evolution of modern money.. Describe the nature and types of money.. Understand the impact of inflation on money..
- Week 13Module 5:
Unit 3: Demand and Supply of Money · 3 hours
Explain the determinants of money supply.. Discuss the motives for demanding money.. Understand the quantity theory of money..
Preparing for the exam
- Create concept maps linking macroeconomic variables (GDP, inflation, unemployment).
- Practice deriving consumption and saving functions from given data.
- Review the assumptions and limitations of each macroeconomic model.
- Focus on understanding the relationships between monetary and fiscal policy instruments and their effects.
- Solve numerical problems related to multiplier effects and equilibrium income determination.
Questions students ask about this course
What is ECO341 about?
This course, Macroeconomics Theory (ECO301), is a semester core course designed for third-year economics students. It provides an in-depth understanding of macroeconomic theory, covering topics such as saving, consumption, investment, national income models, and classical and Keynesian systems. The course also explores the theory of money, macroeconomic policy models, price levels, internal and external balance, and economic growth theory. It aims to equip students with critical thinking skills and the ability to evaluate economic arguments.
How many units does ECO341 have?
ECO341, Macro-Economic Theory I, has 23 units across 7 modules, over 179 pages of course material. You can read it one unit at a time.
How many credit units is ECO341?
ECO341 carries 3 credit units, at 300 level in Social Sciences.
Is ECO341 hard?
ECO341 is rated intermediate level, with intermediate mathematical content. It is mostly theoretical work.
How long does ECO341 take to study?
About 45 hours of study, spread across its 23 units.
How is ECO341 assessed?
ECO341 is assessed by Assignments, Tutor Marked Assignments and Final Examination.
What can I do with ECO341?
Economist, Financial Analyst, Policy Analyst, Market Research Analyst and Investment Banker.