June 2015

1

The Hong Kong Polytechnic University

Hong Kong Community College

Subject Description Form

Subject Code CCN2129

Subject Title Introduction to Macroeconomics

Level 2

Credit Value 3

Medium of

Instruction

English

Pre-requisite /

Co-requisite/

Exclusion

Nil

Objectives

This subject provides students with the fundamental concepts and

theories to understand how an economy works as a coordinated whole.

Students are expected to apply such tools to give simple analysis of

macroeconomics issues. As an introduction to prepare students for more

advanced topics, this subject also aims to enable students to appreciate

the controversial and developmental nature of macroeconomics.

Intended Learning

Outcomes

Upon completion this subject, students will be able to:

(a) illustrate the basic concepts and principles of macroeconomics.

(b) use different economic indicators and models to explain the

economics phenomena.

(c) appraise the issues relating to the macro economy and analyse the

effectiveness of government economic policy.

(d) apply relevant knowledge to assess how a business is affected by its

macroeconomic environment.

Subject Synopsis/

Indicative Syllabus

Scope of Macroeconomics and Basic Concepts in Economic Analysis

Introduction of the differences between macroeconomics and

microeconomics; The concepts of economic analysis.

National Income Accounting and Determination

Major macroeconomics issues; Concepts and approaches to national

income accounting; Aggregation of expenditure and national income

determination.

Aggregate Demand and Aggregate Supply

Explanation of the concepts of the aggregate demand curve and

aggregate supply curve; Reasons and their shape and cause for their

shifts.

June 2015

2

Money and Banking

Nature of money; Commercial banking and credit creation; Money

supply; Demand for money; Money market equilibrium and interest

rate; The quantity theory of money; Financial instruments.

Inflation and Unemployment

Causes and effects of inflation (and deflation) and unemployment; the

Phillips curve.

Fiscal Policy and Monetary Policy

Roles of government spending and taxation; Central banking and

monetary policy; theories of unemployment and inflation.

Teaching/Learning

Methodology

Lectures will focus on the introduction and explanation of key economic

concepts, with specific reference to current economic issues wherever

appropriate.

Tutorials will provide students with the opportunity to deepen their

understanding of the concepts taught in lectures and to apply the theories

to the analysis of real-life macroeconomic issues. Activities in tutorials

will include student presentations and discussions of problem sets and

case studies.

Assessment

Methods in

Alignment with

Intended Learning

Outcomes

A variety of assessment tools will be used to develop and assess

students’ achievement of the subject intended learning outcomes.

Specific assessment

methods/tasks

%

weighting

Intended subject learning

outcomes to be assessed

a b c d

Continuous Assessment* 50

Test 17.5

Individual Assignment 15

Group Assignment 12.5

Participation 5

Final Examination 50

Total 100

*Continuous assessment items and/or weighting may be adjusted by the subject

team subject to the approval of the College Programme Committee.

To pass this subject, students are required to obtain Grade D or above in

both the Continuous Assessment and Final Examination.

Student Study

Effort Expected

Class contact Hours

Lecture 26

June 2015

3

Tutorial 13

Other student study effort

Self-study 52

Continuous Assessment 39

Total student study effort 130

Reading List and

References

Recommended Textbook

Mankiw, N. Gregory (2012). Principles of Macroeconomics. (6th ed.),

(International ed.), Thomson South-Western.

References

Hubbard R. Glenn, & O’Brien Anthony Patrick (2013).

Macroeconomics. (4th ed.), Pearson Addison Wesley.

Lieberman, Marc, & Hall, Robert E. (2010). Principles and Applications

of Macroeconomics. (6th

ed.), Thomson South-Western.

Parkin, Michael (2011). Macroeconomics. (11th ed.), Pearson Addison

Wesley.