Principles of Macroeconomics is one of the courses offered by the OUM Business School at Open University Malaysia (OUM). This is a core course for all students pursuing the degree in Bachelor of Management, Bachelor of Business Administration, Bachelor of Human Resource Management, Bachelor of Accountancy, Bachelor of Hospitality Management and Bachelor of Tourism Management programme.
Episode 1 - Introduction to Macroeconomics
Episode 1 introduces the field of economics from its macro aspect. In this topic, students will be exposed to basic concepts that are often used in the economics context such as employment, unemployment, inflation, financial policy and fiscal policy. Students will also learn in detail about the economic cycle which is divided into a few phases. Besides that, students will also study the basics of aggregate supply and demand plus the views of classical and Keynesian economists.
Episode 2 - National Production
Episode 2 introduces one of the important concepts in macroeconomics, which is national production. This topic explains the circular flow of the income model which connects households and firms. The topic also discusses the method of calculating gross domestic products (GDP), the use of national production data and problems in calculating the national production.
Episode 3 - Determinant of Equilibrium Income Theory
Episode 3 focuses on the determinant of national income equilibrium in a two sector, three-sector and four-sector economy. Students will be able to learn how aggregate demand components such as consumption, investment, government expenditure and net export affect the national income equilibrium. Besides this, students will be exposed to AD-AS model and injection-leakage model that are used to calculate equilibrium level. The concept of multiplier is also explained in this topic. Lastly, this topic describes two main fiscal tools in achieving government objectives, namely, government expenditure and taxes, through automatic and fiscal policies and discretionary fiscal policies.
Episode 4 - Money and the Banking System
Episode 4 focuses on money and the banking system in Malaysia. Firstly, students will be introduced to the term „money‰. This topic explains in detail the banking system which covers financial institutions, non-bank financial institutions, nonbank financial intermediaries and Islamic banks. Students will also learn about the credit creation process. Quantitative and qualitative financial policies are discussed. Students will find out the reasons for money demand and the terms used for the various categories of money supply. Besides that, this topic discusses equilibrium in the money market and its relationship with interest rates.
Episode 5 - Money, Interest Rate and Income: Policy Analysis
Episode 5 discusses the relationship between the goods market and the money market in which they operate interdependently. Any events in both markets will affect each other. Students will be exposed to these two important links between the goods and money markets. The effects of an expansionary and a contractionary fiscal policy on the economy will be discussed. The effects of such policies on the economy will also be discussed. The combination of fiscal and monetary policies aimed at achieving certain objectives will be explained too.
Episode 6 - Aggregate Demand and Supply
Episode 6 focuses on aggregate demand and supply. From the aspect of aggregate demand, students will learn factors that cause the aggregate demand curve to slope negatively, components of aggregate demand such as consumption (C), investment (I), government expenditure (G) and net export (XM), and determinants of the aggregate demand curve. This topic also discusses short-term aggregate supply curve and its determinants. Students will learn how production level and equilibrium price are determined and how an AD-AS model is used to analyse the effects of budget policy and financial policy. Lastly, the construction of a long-term aggregate supply curve is explained.