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ECON 358 Intermediate MacroEconomics Final Exam study notes 2025 Athabasca University

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ECON 358 Intermediate MacroEconomics Final Exam study notes 2025 Athabasca University

Institution
ECON 358 Intermediate MacroEconomics
Course
ECON 358 Intermediate MacroEconomics

Content preview

ECON 222 s




Intermediate Macroeconomics
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WRITTEN BY:
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1

,CAMBRIDGE UNIVERSITY




2

,INTRODUCTION
The course is intended for people who are undertaking their Bachelor of Commerce-programme. The
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s prerequisite course is ECON 121: Principles of Macroeconomics. You are expected to complete the
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s course in 45 hours within a period of one semester.
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COURSE OBJECTIVES s




The overall objectives of the course are;
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• To understand micro-macroeconomic relationships
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• To make learners understand concepts around national income accounting
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• To review the Keynesian income determination model
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• To make learners understand various theories of consumption, savings and investment
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• To discuss government and foreign sectors
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• To describe the IS-LM framework
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• To make learners understand the important relationship between inflation and
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s employment in an economy s s s




3

, TABLE OF CONTENTS s s




TOPIC ONE: INTRODUCTION ......................................................................................................9
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1.1 Evolution of Macroeconomics as a Subject .............................................................................9
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1.2 Lecture Objectives ................................................................................................................10
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1.3 Basic concepts and scope of macroeconomic analysis ...........................................................10
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1.4 Goals of Macroeconomic Policy ...........................................................................................12
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1.5 Importance of Macroeconomics ............................................................................................13
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1.6 Limitations of Macroeconomics ............................................................................................14
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1.7 Micro-macroeconomic Links ................................................................................................14
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1.8 Topic Activity .......................................................................................................................15
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1.9 Self-Assessment ....................................................................................................................15
TOPIC TWO: NATIONAL INCOME, OUTPUT AND EXPENDITURE .....................................16
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2.1 Introduction ..........................................................................................................................16
2.2 Lecture Objectives ................................................................................................................16
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2.3 Circular Flow of Income ........................................................................................................16
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2.3.1 Leakages ........................................................................................................................18
2.3.2 Injections ........................................................................................................................19
2.4 Measurement of National income..........................................................................................19
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2.5 Real Vs Nominal GDP...........................................................................................................21
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2.6 GDP and its Related Concepts ............................................................................................... 22
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2.7 Difficulties in measuring National income ............................................................................23
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2.8 Uses of National Income Accounting ....................................................................................24
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2.9 National Income and Social Welfare .....................................................................................24
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2.10 Self-Assessment ..................................................................................................................25
2.11 Topic Activity .....................................................................................................................25
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TOPIC THREE: CONSUMPTION, SAVINGS AND INVESTMENTS ........................................26
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3.1 Introduction ..........................................................................................................................26
3.2 Lecture Objectives ................................................................................................................26
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3.3 Consumption Function ..........................................................................................................26
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3.4 Savings Function ...................................................................................................................27
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3.5 Determinants of Consumption ...............................................................................................28
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3.6 Theories of Consumption ......................................................................................................29
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4
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ECON 358 Intermediate MacroEconomics
Course
ECON 358 Intermediate MacroEconomics

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Uploaded on
March 5, 2026
Number of pages
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  • econ 358 intermediate macroeconomics
  • econ 358 intermediate macroeconomics final exam
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