Module 1
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Chapter 1: Economic Issues and Concepts
Reading pp. 1-20
Assigned Questions: Chapter 1 Study Exercises 1,2,3,4,7,9,13,14
Objectives:
1. Recognize the complexity of the modern market economy and the main four characteristics of market economies
2. Explain market economy and the importance of scarcity, choice, and opportunity cost
3. Summarize and illustrate the production possibilities boundary
4. Discuss the four key economic problems
5. Distinguish between the different types of economic systems
6. Detail the role of government in a mixed economy
7. Distinguish between positive and normative advice
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Module 2
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Chapter 3: Demand, Supply and Price
Reading: pp. 47-66
Assigned Questions: Chapter 3 Study Exercises 1, 2, 3,5,6,7,9,11
Objectives:
1. Distinguish between changes in quantity demanded and changes in demand
2. Graph shifts in demand and movements along the demand curve
3. Contrast what determines changes in quantity supplied and changes in supply
4. Illustrate shifts in supply and movements along the supply curve
5. Summarize how demand and supply interact to determine price
6. Graphical analysis of a market
7. Determine the effect of equilibrium price, quantity supplied, and quantity demanded for changes in demand or supply
8. Demonstrate the graphic effects of changes in demand and supply
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Module 3
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Chapter 4: Elasticity
Reading: pp.71-87
Assigned Questions: Chapter 4 Study Exercises 1, 2,3,4,6, 8(a and d) 9, 11
Objectives:
1. Explain the meaning of price elasticity of demand and how it is measured
2. Show the relationship between demand elasticity and total expenditure
3. Explain the meaning of price elasticity of supply and how it is measured
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Module 4
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Chapter 5: Price Controls and Market Efficiency
Reading: pp. 92-107
Chapter 7: Producers in the Short Run
Reading: pp. 140-159
Assigned Questions: Chapter 5 Study Exercises 1, 2,4,5,6,8
Chapter 7 Study Exercises 6,10
Objectives:
1. Describe interaction among markets
2. Discuss government-controlled prices
3. Contrast price floors with price ceilings
4. Explain the long and short run effects of rent controls
5. Generalize about economic production, costs and profits in the short run
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Module 5
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Chapter 9: Competitive markets
Reading pp. 185-206
Chapter 10: Monopoly
Reading pp. 212-231
Assigned Questions: Chapter 9 Study Exercises 1, 2,3,4,5,6,8,9
Chapter 10 Study Exercises 1, 2, 3,11
Objectives:
1. Evaluate the economic goals of the firm
2. Paraphrase theory of perfect competition
3. Explain how a competitive firm will operate in the long and short run
4. Summarize the theory of monopoly
5. Compare and contrast perfect competition and monopoly
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Module 6
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Chapter 11: Imperfect Competition
Reading pp. 238-255
Assigned Questions: Chapter 11 Study Exercises 1, 2, 3,7,8,10,11
Objectives:
1. Detail the key elements of monopolistic competition
2. Discuss the rudiments of a cartel
3. Explain the concept oligopoly
4. Compare and contrast perfect competition, monopolistic competition, oligopoly, and monopoly
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Module 7
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Chapter 19: What Macroeconomics Is All About
Reading: pp. 442-460
Assigned Questions: Chapter 19 Study Exercises 1, 2, 4(s b c), 6, 7, 9
Objectives:
1. Define output and income
2. Explain why national income matters
3. Understand the terms: employment, unemployment and labour force
4. Discuss productivity
5. Associate inflation, the price level and interest rates
6. Define exchange rate and net exports
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Module 8
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Chapter 20: The Measurement of National Income
Reading: pp. 465-481
Chapter 21: The Simplest Short-Run Macro Model
Reading: pp. 486-507
Assigned Questions: Chapter 20 Study Exercises 1,2,3,5,6,7,9
Chapter 21 Study Exercises 1, 2,3,5,6,7,8,9
Objectives:
1. Consider GDP from the expenditure side and the income side
2. Explore real and nominal GDP
3. Associate inflation, price level and interest rates
4. Understand exchange rates and net exports
5. Recognize the simple aggregate expenditure model
6. Investigate how the real level of GDP is determined
7. Distinguish between real and potential GDP
8. Examine desired aggregate expenditure
9. Investigate changes in equilibrium national income
10. Evaluate shifts in the aggregate expenditure
11. Understanding and using the simple multiplier
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Module 9
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Chapter 22: Adding Government and Trade to the Simple Macro Model
Reading: pp. 513-526
Chapter 23: Output and Prices in the short Run
Reading: pp. 534-549
Assigned Questions: Chapter 22 Study Exercises 3,4,5,6,9,10
Assigned Questions: Chapter 23 Study Exercises: 1,2,3,8,9,10
Objectives:
1. Examine the effects of adding government purchases and tax revenues to the macro model
2. Explore foreign trade using the macroeconomic model
3. Investigate shifts in the net export function
4. Examine the effect of changes in international relative prices
5. Examine changes in foreign income
6. Demonstrate a sound understanding of equilibrium national income
7. Consider the multiplier with taxes and imports
8. Examine the effects of adding government purchases and tax revenues to the macro model
9. Explore fiscal stabilization policy
10. Understand why exogenous changes in price level shifts in aggregate expenditure curve
11. Examine the aggregate demand curve (AD) and what causes it to shift
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Module 10
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Chapter 26: Money and Banking
Reading: pp. 616-637
Assigned Questions: Chapter 26 Study Exercises: 1,2,5,7,8,10,11
Objectives:
1. Examine the shape of the aggregate supply (AS) curve
2. Explore shifts in the AS curve
3. Evaluate macroeconomic equilibrium using AS and AD
4. Summarize AS and AD shocks on real GDP and desired aggregate expenditure
5. Analyze the nature of money
6. Explain the Canadian banking system
7. Examine the role of the Bank of Canada and commercial banks in Canada
8. Discover how commercial banks create money
9. Calculate the expansion of money given a single new deposit
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Module 11
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Chapter 27: Money, Interest Rates, and Economic Activity
Readings: pp.643-665
Assigned Questions: Chapter 27 Study Exercises:1,2,3,6,7,8,9,10,11,12
Objectives:
1. Demonstrate a good understanding of bonds
2. Calculate the present value of a bond
3. Understand the reasons for holding money
4. Assess the determinants of money demand
5. Explore monetary equilibrium and national income
6. Summarize the monetary transmission mechanism for a closed and open economy
7. Examine and show graphically how the effectiveness of monetary policy
depends on the slopes of the MD and ID curves
8. Contrast the “effectiveness of monetary policy” debate between Keynesians and
monetarists
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Module 12
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Chapter 28: Monetary Policy in Canada
Reading: pp. 671-696
Assigned Questions: Chapter 27 Study Exercises 1,2,6,8,9,11
Objectives:
1. Explain how the bank of Canada implements monetary policy targeting the interest rate directly or targeting the money supply directly
2. Critique the theory of the endogenous nature of the money supply
3. Use a target rate of interest to diagram the monetary transmission process involved in expansionary and contractionary monetary policy
4. Long and variable lags
5. Review major concepts prior to the final exam
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