Course Description
Dear Learners, Well come to Grade 12 Economics module one!
This module for Grade 12 students is designed to provide you with a comprehensive understanding of macroeconomic principles as outlined in the Grade 12 Economics Ethiopian National curriculum. The module aims not only at preparing you for your national university entrance exams but also to equip you with critical analytical skills that can shape your future roles as economists, policymakers, and informed citizens of Ethiopia.
Structured into four units, the module begins by laying the foundational concepts of macroeconomics in Unit one. You are introduced to the distinction between macroeconomics and microeconomics, and explore key macroeconomic indicators such as economic growth, inflation, unemployment, business cycles, and the balance of trade. They also delve into different schools of thought in macroeconomics—Classical, Keynesian, and Monetarist theories—and analyze their historical evolution and policy implications.
Unit Two focuses on aggregate demand (AD) and aggregate supply (AS). You will learn about the factors influencing AD, the shape and shifts of the AD curve, and how changes in AD affect economic equilibrium. you will also study AS in both the short run (SRAS) and the long run (LRAS), understanding concepts like potential output and factors affecting AS over time. Using the AS-AD model, you will be able to analyze economic fluctuations and the impact of policy interventions on economic stability.
Unit Three explores market failure and public goods. Students identify types of market failures such as externalities and asymmetric information, and examine characteristics of public goods. Dear learners, you will hereby learn about consumer protection measures and their role in ensuring fair market practices and safeguarding consumer rights. Through case studies relevant to Ethiopia, learners will be able to apply theoretical concepts to real-world scenarios, understanding why markets fail and how government policies can address these failures.
The final unit, Unit 4, covers various macroeconomic policies. you will learn about fiscal policy tools for influencing aggregate demand and supply, distinguishing between expansionary and contractionary fiscal policies. Monetary policy is also extensively covered, including tools used by central banks to control money supply and interest rates. Dear learners, you will additionally explore income policies and foreign exchange policies governments use to manage currency exchange rates. By the end of the module, students gain a holistic understanding of how these policies interact to stabilize economies and promote sustainable growth.
Generally, the module emphasizes the practical application of macroeconomic theories to Ethiopian economic contexts, aiming to foster critical thinking and analytical skills necessary for future economic decision-making and informed citizenship. By integrating local examples and practical applications, the module prepares you learners not only for academic success but also strives to enable you contribute meaningfully to Ethiopia’s economic development in the future.
Course Objectives:
Dear Learners,
After successful completion of study of this module, you will be able to:
- Distinguish between macroeconomics and microeconomics and summarize the focal areas of macroeconomics.
- Analyze the challenges posed by economic growth, inflation, unemployment, and other macroeconomic indicators.
- Compare and contrast the Classical, Keynesian, and Monetarist macroeconomic theories and articulate their contributions to economic thought.
- Apply the AS-AD model to examine economic fluctuations and demonstrate comprehension of aggregate demand and supply dynamics.
- Identify instances of market failures, explain public goods, and comprehend concepts such as externalities, asymmetric information, and consumer protection.
- Describe the tools and categories of fiscal, monetary, income, and foreign exchange policies, describing their roles in shaping economic outcomes
Course Contents
Unit One: The Fundamental Concepts of Macroeconomics
- Lesson one: Definition and Focus Areas of Macroeconomics:
- Lesson Two: Key Challenges in Macroeconomics:
- Lesson Three: The Schools of Thought in Macroeconomic Analysis:
Unit Two: Aggregate Demand and Aggregate Supply Analysis
- Lesson one: Aggregate Demand
- Lesson Two: Aggregate Supply
- Lesson Three: Equilibrium of Aggregate Demand and Aggregate Supply
Unit Three: Market Failure and Consumer Protection
- Lesson one: Introduction to Market Failure
- Lesson Two: Understanding Public Goods
- Lesson Three: Externalities
- Lesson Four: Asymmetric Information
- Lesson Five: Consumer Protection
Unit Four: Macroeconomic Economic Policy Instruments
- Lesson one: Definition and Types of Macroeconomic Policies
- Lesson Two: Fiscal Policy
- Lesson Three: Monetary Policy
- Lesson Four: Income and Wage Policies
- Lesson Five: Foreign Exchange Policies
Assessment Methods:
- Engagement (brainstorming questions)
- Activity questions
- Quizzes
- Model Exams
Reference Materials:
Textbook References
- Grade 12 Economics Student Text Book Based On New Curriculum
- Grade 11 Economics Textbooks
- McConnell, C. R., Brue, S. L., & Flynn, S. M. (2018). Macroeconomics: Principles, Problems, and Policies (21st ed.). McGraw-Hill Education.
- Mankiw, N. G. (2018). Principles of Macroeconomics (8th ed.). Cengage Learning.
- Mankiw, N. G. (2020). Essentials of Economics (9th ed.). Cengage Learning.
- Mishkin, F. S. (2018). The Economics of Money, Banking, and Financial Markets (12th Global ed.). Pearson.
- Frank, R. H., Bernanke, B. S., & Antonovics, K. (2019). Principles of Economics (7th ed.). McGraw-Hill Education.
- Pindyck, R. S., & Rubinfeld, D. L. (2018). Microeconomics (9th ed.). Pearson.
- Gruber, J. (2019). Public Finance and Public Policy (6th Global ed.). Worth Publishers.
- Krugman, P., & Obstfeld, M. (2018). International Economics: Theory and Policy (11th Global ed.). Pearson.
- Sarno, L., & Taylor, M. P. (2018). Exchange Rate Economics: Theories and Evidence (2nd ed.). Oxford University Press.
