SULTAN QABOOS UNIVERSITY

COURSE OUTLINE
PROGRAM: ECONOMICS

1. Course Code ECON2221 Section 70

2. Course Title PRINCIPLES OF MACROECONOMICS
3. Credits 3
4. Pre-requisite Course(s) (FPEL0601 or FPEL0602 or FPEL0600 or FPEL0603 or FPEL0560 or FPEL604)+
FPMT0101
5. Co-requisite Course(s) None
6. Equivalent Course(s) -
7. Incompatible Course(s) -
8. Course Category ☐ University Requirement ☐ University Elective
☒ College Requirement ☐ College Elective
☒ Department Requirement ☐ Department Elective
☐ Specialization Requirement ☐ Specialization Elective
☐ Other (specify):
9. Course Owner College: CEPS Department: Econ & Fin
10. Course Type ☒ Lecture ☐ Lecture/Lab
☐ Lecture/Seminar ☐ Lecture/Studio
☐ Lecture/Tutorial ☐ Lecture/Lab/Tutorial or Seminar
☐ Tutorial ☐ Laboratory (Practical)
☐ Field or Work Placement ☐ Studio
☐ Seminar ☐ Internship
☐ Workshop ☐ Project
11. Language of Instruction English
12. Course Description
This is an introductory course that examines the principles of macroeconomic analysis. The concepts of economic
growth, unemployment and inflation are explored, and fundamental theories are used to explain the interaction of
these concepts within an economic system. The course also considers business cycle fluctuations and policies to
achieve greater economic stability, such as monetary and fiscal policy.
13. Teaching/Learning Strategies
The textbook represents the core part of the course where lectures are designed to complement the book’s concepts.
The textbook and lecture notes are not identical and should not be considered a substitute for one another. Additional
material from other sources may also be distributed in lectures to improve the understanding of certain concepts.
In-class tutorials, exams and quizzes will be assigned to ensure students understand the ideas throughout the
semester. You will find the lecture slides, practice questions, and other relevant materials on Moodle
(https://elearn.squ.edu.om/). This is our primary means of communication between us, so make sure you are
registered. Check this matter with your instructors. In addition, note that:
1. Midterm Exam (MT) 40%
2. Final Exam (FNL) 40%
3. Online HomeWorks (HWs) 5%
4. In-Class Quizzes (Qs) 15%
Total 100%

NOTE: Item (no. 3 & 4) may differ from Sections according to each instructor.

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14. Assessment Components and Weight [%]
☒ Quizzes 15% ☐ Practical ☐ Other (specify):
☒ Homework assignments 5% ☐ Project
☒ In-term examination(s) 80% ☐ Final examination
15. Grading Method
☒ A-F Scale ☐ Pass/Not passed
16. Textbook(s) and Supplemental Material
Case, Fair, and Oster (2020) Principles of Macroeconomics, Global Edition, Pearson Education Ltd.

17. Matching Course Objectives with Program Outcomes and SQU Graduate Attributes
SQU Graduate Attributes
A. SQU graduates should be able to: B. SQU graduates possess C. SQU graduates should
1. apply the knowledge and skills 1. interpersonal communication skills and relish good citizenship
relevant to the specialization alignment with the culture of the qualities, be conscious of
2. communicate effectively and use international labour market to assist them their national identity, be
information and communication in practical life and in living successfully socially responsible,
technologies 2. skills and motivation for independent engage in community
3. critically analyze complex learning and engagement in lifelong affairs and be mindful of
information and present it in a simple, learning and research contemporary issues.
clear manner 3. work ethics and positive values, and
intellectual independence and autonomy
4. teamwork skills and display potential
leadership qualities

# Intended Student Learning Outcome Relevant Program Outcome(s) Applicable

/Course Learning Objective Attribute(s)
Identify the fundamental economic problem of a. Demonstrate an understanding of the A1, B2, and C
scarcity and recognize that scarcity gives rise to micro and macroeconomic theory.
choice, opportunity costs and tradeoffs. b. Understand key economic concepts
1. and describe how these concepts can be
applied in the work and dynamic
business environment.

Recognize national income-accounting a. Demonstrate an understanding of the A1, A3, B2,

significance for assessing economic performance, micro and macroeconomic theory. and C
designing public policy, and interacting parts of b. Understand key economic concepts
the economy. and describe how these concepts can be
2. applied in the work and dynamic
business environment.
c. Analyze data on issues relevant to the
domestic and international economy.

Define and associate different types of a. Demonstrate an understanding of the A1, A3, B2
unemployment, its causes and economic and micro and macroeconomic theory. and C
social consequences. b. Understand key economic concepts
and describe how these concepts can be
3. applied in the work and dynamic
business environment.
c. Analyze data on issues relevant to the
domestic and international economy.

Define and calculate inflation; articulate its a. Demonstrate an understanding of the A1, A3, B2
causes, effects, and social costs. micro and macroeconomic theory. and C
4.
b. Understand key economic concepts
and describe how these concepts can be

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 applied in the work and dynamic
business environment.
c. Analyze data on issues relevant to the
domestic and international economy.

Recognize the functions of money, the process of a. Demonstrate an understanding of the A1, A3, B2
money creation, and banks’ role in a market micro and macroeconomic theory. and C
economy. b. Understand key economic concepts
and describe how these concepts can be
5. applied in the work and dynamic
business environment.
c. Analyze data on issues relevant to the
domestic and international economy.

Differentiate the policy instruments used to a. Demonstrate an understanding of the A1, A3, B2
control the amount of money and spending in an micro and macroeconomic theory. and C
economy and their influence on economic b. Understand key economic concepts
activity. and describe how these concepts can be
6. applied in the work and dynamic
business environment.
c. Analyze data on issues relevant to the
domestic and international economy.

Examine the role of foreign exchange rate a. Demonstrate an understanding of the A1, A3, and C
markets in trade and explain factors that micro and macroeconomic theory.
influence exchange rate dynamics. b. Understand key economic concepts
and describe how these concepts can be
7. applied in the work and dynamic
business environment.
c. Analyze data on issues relevant to the
domestic and international economy.

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16. Student Responsibilities

It is the student’s responsibility to know and comply with all University Academic Regulations relevant to participation in
this course. These regulations specifically include attendance requirements and students` academic code of conduct.
It is the student’s responsibility to be punctual and attend all classes for attendance.
Students are expected to perform their work honestly and avoid any academic misconduct, which is defined as using
dishonest or deceitful means to gain some academic advantage or benefit. This can take many forms, including but not
limited to the following: copying, plagiarism, collusion and forging documents. Please refer to the Undergraduate Academic
Regulations and the Student Academic Misconduct Policy for full details.
Additionally, this course requires that you:
will comply with the following codes and policies:
I) Collusion Policies:
You can consult with each other while working on individual or group homework, but all the work you submit must

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be your own. Discuss the assignments among yourselves. This is helpful to the learning process. However, direct
copying of the work of other work will NOT be allowed or tolerated and will result in a grade reduction.
II) Attendance Policy: It is the student’s responsibility to be punctual and to attend all classes. Failure to participate
in courses without prior approval for whatever reason is considered as part of the percentage missed. Students bear
full responsibility for checking their attendance records. Attendance records are kept, and an “absentee warning
notice” will be issued if a student is absent for more than 10% of the total contact hours. An “absentee withdrawal
notice” will be given, and the student will be deemed to have withdrawn from the course with an “FW” grade if a
student is absent for more than 20% of the total contact hours.
III) Code of Ethics: Academic misconduct is defined as using any dishonest or deceitful means to gain some academic
advantage or benefit. This can take many forms, including but not limited to, the following:

A. Examinations
a) Copying, or attempting to copy, from another student’s work, or permitting another student to copy from
your work
b) Using notes of whatever kind in the formation of answers in a closed book examination
c) Impersonation of another student in an examination, seminar or another form of presentation
d) Disrupting the conduct of examinations by illegally obtaining access to examination papers or answers
and/or distributing this material to others.

B. Assignments, Essays, etc.

a) plagiarism: Using the words, thoughts, ideas, results, etc., of another person in a written assignment, without
acknowledging the source, as if it were the student’s work
b) copying: Copying another person’s answers in an essay, assignment, paper, etc. and presenting it, either wholly
or with minor changes, as if it were the student’s work
c) collusion: Working with others on an assignment which is intended to be an individual assignment and
incorporating their material into your work
d) switching: Submitting work completed for one course in another course without the permission of the instructor
e) falsification: Inventing data or altering data that have been obtained from legitimate sources

C. Forging University Documents

Submitting or using forged academic documents or forged signatures for personal gain or fraud. If a student commits
an act of academic misconduct, whether defined above or of a different nature, it may be documented, and then one
or more of the following penalties may be applied:
- Written warning
- Downgrading of an assignment or examination
- An ‘F’ grade given to the assignment or examination
- An ‘F’ given to the course
- Suspension from the university for a specified period
- Expulsion from the university

NOTE: You MUST also read additional Assessment Plan and Policy documents for this course and CEPS Online Guide
for all courses posted on Moodle. These documents clarify all policies and codes of practice.

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 COURSE INFORMATION
Course Code ECON2221 Course Title Principles of Macroeconomics
Semester/ Year 2023 Spring Section(s) Multiple
Day, Time, and Place See Appendix A, below
Course Coordinator Dr Bedri Tas
Office Location CMT, Room 1024 Office Hours See Appendix A, Below
Office Tel. Ext. 1848 Email [email protected]

Tentative Schedule
Lecture
Week Topic/material to be covered Assessment
#
1 [dd/mm]  the starting date of the weeks are shown like this.
[10/09] Introduction & Chapter 01: The Scope and Method of Economics
2 [17/09] PART I: INTRO TO ECONOMICS
Chapter 01: The Scope and Method of Economics HW_Ch1
- Definitions
- Key Concepts
- Scope: Micro vs Macro (Diverse Fields may be skipped)
- Methods of Economics: Positive vs Normative (others may be skipped)
- Appendix is a self-study, but knowledge of the materials is assumed.

Chapter 02: Scarcity & Choice

- Scarcity, Choice & Opportunity Cost
3 [24/09] Chapter 02: Scarcity & Choice HW_Ch2
- Scarcity, Choice & Opportunity Cost
- Production Possibility Frontier (PPF)
- Economic Problems: Trio questions
- Economic Systems: Free Market Vs Command & Control

Materials that are certainly Exclude:

--Scarcity & Choice in an Economy or Two pp.51-55

4 [1/10] Chapter 03: Demand & Supply (D&S) HW_Ch3

- Basics of Circular Flow of Economic Activities
- Demand Side: The Law of Demand, Demand Shifts, Market Demand
- Supply Side: The Law of Supply, Supply Shifts, Market Supply
- Market Equilibrium: Excess Demand/Excess Supply, Changes in Equ.

5 [8/10] PART II: INTRO TO MACROECONOMICS

Chapter 06: Measuring National Output/Income HW_Ch06
- A brief introduction to Macroeconomics (Business Cycles)
- GDP Value-Added Approach
- GDP: Expenditure vs Income Approach
- Nominal vs Reading GDP, GDP Deflator
- Limitations of GDP Concepts
- Gross National Income (GNI) Per Capita as well-being
6 [15/10] Chapter 07: Unemployment, Inflation, & Long-Run Growth HW_Ch07
- Unemployment Rate
- Labor Force Participation Rate
- Discouraged Worker Effect and Other issues of Unemployment
Calculations
- Costs of Unemployment by its Types: Frictional, Structural, & Cyclical
- Long-Run Growth

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 - Productivity Growth
7 [22/10] Chapter 7: Unemployment, Inflation, & Long-Run Growth (Continued) 20 Minutes
- Price Indices, and the notion of Consumer Price Index (CPI) In-Class Quiz#1 on
- Inflation rate Chapter 2 & 3
- Costs of Inflation/Deflation: Nominal vs Real Interest Rate Date: 23 October,
Monday in class.
8 [29/10] PART III: THE CORE OF MACROECONOMIC THEORY
Explaining the proceeding Chapters’ Linkages

Chapter 8: Basic Keynesian Model in Closed Economy & No Government HW08

- Consumption Function (C)
- Marginal propensity to Consume & Marginal Propensity to Save
- Planned Investment (I) and Interest Rate (r)
- Determination of Equilibrium Output/Income in Short-Run

9 [5/11] Chapter 8: Basic Keynesian Model (Continued) Due date for HWs of
- The Multiplier Analysis of Exogenous Variables Chapters 1-2-3-6-7

Review Session for Midterm Exam on Ch1, Ch2, Ch3, Ch6, & Ch7 Midterm Date:
November 9,
Thursday @ 12:00
PM
10 [12/11] Chapter 9: Keynesian Model in Closed Economy with Government HW09
- Government in the Economy
- Discretionary Fiscal Policies: Gov. Purchase (G) and net Taxes (T)
- Government Budget: Budget Deficit/Surplus
- Determination of Equilibrium Output/Income in Short-Run
- Fiscal Policy at Work: Multiplier Effects
- Balanced Budget Multiplier
- Automatic Stabilizers/Destabilizers
- Appendix may or may not be included depending on the semester

Materials that are certainly Exclude:

--The Federal Budget in the USA pp.201-205

11 [19/11] Chapter 10: Money HW10

- What is Money and its Functions
- Commodity Money vs Fiat Currency
- Measuring Monetary Aggregates: M1 & M2
- How Banks Create Money: Fractional Reserve System
- Banks Balance Sheets & the Accounting Identity

12 [26/11] Chapter 10: Money (Continued) HW10

- Money Multiplier
- The Demand for Money AND Interest Rate & Security Prices
- How the Central Banks (or the Fed) Control the Money Market
- Monetary Policy Tools:
Reserve Requirement Ratio, Open Market Operation and Discount Rate

Materials that are certainly Exclude:

--The Federal Reserve System in the USA pp.227-229

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13 [3/12] Chapter 11: AS-AD Model
- Aggregate Supply (AS) in the Short Run
- The IS Curve (i.e., equilibrium in goods & services market)
- Monetary Policy Rule (MPR or Fed rule, i.e., equilibrium in the money
market)
- Aggregate Demand (AD)
- Reasons behind downward slope of AD

14 [10/12] Chapter 11: AS-AD Model (Continued) HW11

- AD-AS Equilibrium
- Reason for a Downward-sloping AD Curve
- The Long Run AS Curve & Potential GDP
- The Simple “Keynesian” Aggregate Supply

- Fiscal Policy Effects

- Shocks to the Economic System, stagflation, & cost-push inflation

15 [17/12] Review Week.

16 [24/12] Final Exam on Ch8, Ch9, Ch10, & Ch11 Final Exam:
The final exam will be on December 26, Tuesday. December 26,
Time: 11:30am. Tuesday @ 11:30
am.

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 APPENDIX A: INSTRUCTORS OF MULTIPLE SECTIONS
Office
Day, Time, Location
Section Instructor Email Office Hours
and Place and
Extension
10/11 Dr Al-Mukhtar Al-Abri Sunday and CEPS Sunday and
Tuesday, 8 to 2043, Ext. [email protected] Tuesday 10am to
10 am (E09) 1838 m 12pm
20/21 Dr Adham Aal Said
30/31 Dr Adham Aal Said
40/41 Dr Burcu Ozcan
50/51 Dr Burcu Ozcan
60/61 Dr Burcu Ozcan
70/71 Dr Bedri Onur Tas Monday & CEPS 1024. [email protected] Monday and
Wednesday, 10 Ext:1848 Wednesday 9:00-
am (E09) 10:00 or by
appointment.
80/81 Dr Bedri Onur Tas Sunday CEPS 1024. [email protected] Monday and
&Thursday, 10 Ext:1848 Wednesday 9:00-
am (E09) 10:00 or by
appointment.

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 APPENDIX B: ADDITIONAL INFORMATION
CEPS Graduate Attributes
CEPS 1 Business knowledge: Able to have the relevant and contemporary business knowledge and concepts
CEPS 2 Business Problem Inquiry: Able to use analytical skills in identifying and applying the appropriate problem-
solving methods and tools in a business context.
CEPS 3 Professional communication: Able to communicate effectively and professionally in a business environment.
CEPS 4 Teamwork skill: Able to collaborate effectively with peers (people with diverse backgrounds)
CEPS 5 Life-long learning: Able to continuously acquire knowledge to evaluate business-related opportunities in a
changing business environment.
CEPS 6 Entrepreneurship culture: Able to relate entrepreneurship knowledge and know-how in business settings.
CEPS 7 Ethics and active citizenship: Able to act in accordance with the ethical, sustainable, and social responsibilities
involved in the workplace.
CEPS 8 Information and communication technology Experience: Able to utilize information technology for business
communication and decision making

Alignment of CEPS Graduate Attributes with SQU Graduate Attributes

CEPS Graduate Attributes SQU Graduate Attributes
CEPS1 A1,C
CEPS2 A1, A3, B2, C
CEPS3 A1,A2, B1, B2,C
CEPS4 A2, B1, B4
CEPS5 A1, A3, B1, B2, C
CEPS6 A1, A3, C
CEPS7 B1, B3, C
CEPS8 A1, A2

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