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Macroeconomic Principles

Course Description: This course covers the fundamental concepts of macroeconomics, reviewing the concept of Gross Domestic Product (GDP) and its components, along with other related concepts. Additionally, the course delves into a detailed analysis of determining the equilibrium income level in several sectors. It also discusses investment theory and the importance of the role of money in the national economy. Furthermore, it examines detailed treatments of monetary theories in economic thought. In addition, it covers macroeconomic issues and problems such as inflation, unemployment, economic recession, and fiscal and monetary policies. Finally, it addresses the basic concepts of economic growth and economic development.
Credit hours: 3
Prerequisites: ECON110
Objectives of the course :

Upon successful completion of this course, students will be able to:
1. Describes the components of GDP and calculates GDP with all its items.
2. Explains the mechanism for determining the equilibrium income level in a two-sector, three-sector, or four-sector economy
3. Defines simple multiplication, distinguishes between simple multiplications, uses them, and describes theories of consumption and investment.
4. Define aggregate demand and aggregate supply and the determination of the general price level.
5. Defines unemployment and inflation, links them, and identifies their causes and remedies.
6. Calculate inflationary and deflationary gaps and how to address them.
7. Makes appropriate decisions regarding economic balance and macroeconomic policies (fiscal and monetary).

Course outputs :

Knowledge and Understanding, Vol. 1 Basic Knowledge:
Identifies the fundamental principles, theories, and concepts of macroeconomics.
Explains the mechanism for determining the equilibrium income level in a two-sector, three-sector, or four-sector economy.
Applies theories, laws, and rules related to the macro aspect of the economy and the role of economic policies in the national economy.

Additional information:
  • Last updated: 2026-04-22

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