Course Description:

This introductory course explores the fundamental concepts and tools of macroeconomic analysis with a focus on real-world applications, particularly within The Bahamas and the wider Caribbean region. Students will examine the functioning of the economy as a whole, including national income, economic growth, unemployment, inflation, fiscal and monetary policy, and international trade. Graphical analysis and basic algebra are used to interpret and explain key macroeconomic relationships and policy implications.

 

Course Objectives:

Upon successful completion of this course, students will be able to:

· Understand the structure and functioning of a macroeconomy.

· Apply economic reasoning and analytical tools to interpret economic events.

· Differentiate between macroeconomic trends in developing economies like The Bahamas and those in industrialized nations.

· Evaluate the effectiveness of fiscal and monetary policies.

· Understand the role of financial institutions, international trade, and government budgeting in economic performance.

 

Course Learning Outcomes:

By the end of the course, students will be able to:

· Define key macroeconomic concepts such as GDP, inflation, unemployment, and economic growth.

· Analyze the interactions between households, firms, government, and the foreign sector in an economy.

· Interpret macroeconomic indicators and apply them to assess economic performance.

· Explain the effects of fiscal and monetary policy on aggregate demand and supply.

· Discuss the causes and consequences of inflation, unemployment, and budget deficits.

· Evaluate the role of central banks, including The Central Bank of The Bahamas, in regulating the money supply.

· Examine the implications of international trade and financial flows on the domestic economy.

Recommended Course Materials:

· Instructor-provided course manual and reports focusing on The Bahamian and Caribbean economies

· Access to news articles, economic data portals, and economic reports (e.g., IMF, Central Bank of The Bahamas)

· Scientific calculator and graphing tools

 

Course Content:

1. Introduction and Key Principles

· What is Economics?

· Key Economic Principles

· Role of Government and Markets:

· Case studies from The Bahamas, Caribbean, and industrialized nations

· Supply and Demand Analysis

· Market Equilibrium

 

2. Basic Concepts of Macroeconomics

· The Scope of Macroeconomics

· Measuring Economic Activity (GDP, CPI, etc.)

· Economic Indicators and Statistical Tools

3. The Economy in the Long Run

· Classical Economic Theory

· Full Employment Output

· Drivers of Economic Growth and Productivity

4. Economic Fluctuations

· Aggregate Demand and Aggregate Supply Framework

· Keynesian Economics

· The Role of Investment and Financial Intermediation

 

5. Money, Banking, and Monetary Policy

· Nature and Functions of Money

· Structure of the Banking System

· Role of Central Banks (with emphasis on The Bahamas)

· Tools and Effects of Monetary Policy

 

6. Inflation, Unemployment, and Government Deficits

· Short-Run vs. Long-Run Trade-offs

· Dynamics of Inflation and Unemployment

· Public Debt and Budget Deficits

· Bahamian Budget Analysis and Exercises

 

7. The International Economy

· Principles of International Trade

· Trade Policies and Globalization

· Foreign Exchange Markets and Balance of Payments

· International Financial Institutions

 

Course Assessment & Evaluation:

· Class Participation and Attendance – 10%

· Midterm Examination – 30%

· Final Examination – 60%