Macroeconomics

PHILIPPINE CHRISTIAN UNIVERSITY Dean’s Information

DASMARINAS CITY, CAVITE
CHERRIELYN L. CASCO, Ed.D
[email protected]
09182824901/09275463348
Dean, CASTE

COLLEGE OF ARTS, SCIENCES AND TEACHER EDUCATION Instructor’s Information

PHILIPPINE CHRISTIAN UNIVERSITY
DASMARINAS, CAVITE Cristopher C. Salinas
Telefax: [email protected]
www: Contact number: 09156423470
FB Messenger: Cris Salinas

Course Information
Course Name Macroeconomics Course Code
Pre-requisite Subject Course Credit 3 units, 3 hrs./wk. (18 weeks, 54 hrs. total)
Course Requirements

Grading System: Grading System : Attendance - 10%, Assignment - 10%, Quizzes – 20% , Recitation - 20% , Major exams – 40%

Course Description BTIs

covered
The course guides the students to demonstrate an understanding of the cause and effects of inflation, unemployment, fiscal and
monetary policies, modes of taxation, international trade, Gross National Policy, Gross Domestic Policy, and consumer 1.1.1
development index.

Macroeconomics 77
Course Learning Outcomes BTIs
covered
At the end of the course, the pre-service teachers should be able to:

A. demonstrate understanding of the cause and effects of inflation, unemployment, fiscal and monetary policies, modes
of taxation, international trade, Gross National Product, Gross Domestic Product, and consumer development index; 1.1.1
B. demonstrate understanding on the theories of consumer behavior, basic economic theories and history of economics; and
C. apply critical and creative thinking through a survey of small-scale business/entrepreneurs on the challenges encountered. 1.2.1
1.1.1

Macroeconomics 78
 Time Intended Learning Outcomes (ILOs) BTIs Content Suggested Teaching Learning Suggested Assessment BTIs
Allotment Activities
Weeks 1-2 At the end of these weeks, the pre- A. Understanding Economics
service teacher (PST) should be able [CLO a. Economics defined
to: B] b. Nature of Economics
c. Methods and Tools  Lecture-discussion using  Written objective test/essay on 1.1.1
a. define and discuss Economics 1.1.1 of Economics PowerPoint Presentation understanding economics 1.5.1
and its two major divisions; d. Divisions of Economics on understanding 5.1.1
b. describe the nature of 1.1.1 e. The Methodology of Economics economics
Economics; 1.1.1
c. enumerate and differentiate the
different methods and tools used
in the study of economics; and 1.1.1
d. discuss the methodology of
Macroeconomics.

Weeks 2-3 At the end of these weeks, the pre- B. The Circular Flow of Economic
service teacher (PST) should be able Activities
to: [A] a. The Circular Flow of Output and
Income  Lecture-discussion using  Written objective test/essay on 1.1.1
a. discuss the circular flow of 1.1.1 b. The Multiplier Effect and PowerPoint Presentation on the the circular flow of economic 5.1.1
output and income; the Circular Flow circular flow of economic activities activities 1.5.1
b. explain the relationship of the 1.1.1 c. Inflows and Outflows
multiplier effect and the circular Simulation. Divide the class into
flow; and four groups: Households, Firms, Determine how many resources 1.1.1
c. discuss the inflows and outflows 1.1.1 Government and Foreign Sector. were unsold or unused. Do the
of wealth in the circular flow of Note how many students are in same for goods and services.
output and income. each group. Make as many Discuss the two-sector circular
bundles of money and resources flow model, assuming the
as the number of students. Print Households own all resources,
out play money (using genuine selling these to the Firms, earning
Philippine bills) and print out rent on land, wages for labor,
resource certificates as Land, interest for capital and profit for
Labor or Capital. Divide the the entrepreneur. The Firms then
money equally into four envelopes use the resources to produce
(but with different denominations, goods and services, which the
some with more money than households buy. Output will be
others) and divide the resources reflection paper on the two-sector
into six envelopes (with a different circular flow model
combination of land, labor, capital
and entrepreneur). Do not worry
that some Households will have

Macroeconomics
 more or less resources, or Firms
have more or less money than
others. That is how it is in real life.

Explain to the Firms that they want

to start a business to produce a
good or service, so they need to
get land, capital and labor.
Explain that they want to
maximize profits in the Product
Market by minimizing costs in the
Resource Market. Therefore, they
must get land, labor and capital at
the lowest cost possible and sell
their goods and services for the
highest price possible.

Households seek to optimize

incomes in the Resource Market
to maximize their consumption of
goods and services in the Product
Market. So households should try
to sell their resources for the
highest price possible and buy
products at the lowest price
possible.

Distribute different amounts of

money to the Firms. Each Firm
should know how much it had
at the start so it will be able to
tell if it profits or losses at the
end.

Weeks 4-6 At the end of these weeks, the pre- C. An Introduction to Demand
service teacher (PST) should be able [A] and Supply
to:
Demand  Lecture-discussion using  Written objective test/essay on 1.1.1
a. define and discuss demand, 1.1.1 1. Demand Schedule and PowerPoint Presentation demand and supply 1.4.1
demand schedule and demand Demand Curve on demand and supply
2. Law of Demand

Macroeconomics
 curve as well as supply, supply 3. Changes in Quantity  Have students conduct surveys  Oral recitation on their 1.1.1
schedule and supply curve; Demanded and Movements Along and generate their own demand insights from the activities. 1.7.1
b. analyze the market dynamics the Demand Curve schedules (tables) for a
using the law of demand and law 1.1.1 4. Ceteris Paribus Assumption commonly purchased lunch item
of supply; 5 Changes in Demand and Shifts – slices of pizza or kanin at ulam,
c. discuss aggregate demand and in the Demand Curve for example. Associate the law of
its determinants, as well as 1.1.1 6. Aggregate Demand demand with students’ own
aggregate supply and its 7. Determinants of behavior, as represented in their
determinants; and Aggregate Demand demand schedules.
d. compute the coefficient of 8. Elasticity of Demand
elasticity of demand and supply. 1.4.1  Make a hypothetical situation in
Supply constructing a supply schedule
1. Supply Schedule and for a particular product (Ex. corn,
Supply Curve onion, shirt, ukay-ukay)
2. Law of Supply
3. Changes in Quantity Supplied  Provide practice problems in
and Movements Along the which students plot demand
Supply Curve and supply curves from
4. Changes in Supply and Shifts schedules or charts.
in the Supply Curve
5. Aggregate Supply  Conduct a classroom simulation in
6. Determinants of which students experience the
Aggregate Supply emergence of equilibrium price
7. Elasticity of Supply and quantity from the un-
orchestrated interaction of buyers
and sellers.

 Provide practice problems – both

graphic and narrative – in which
students identify the market
impacts of changes in the
determinants of demand and/or
supply.

 Provide practice problems – both

graphic and narrative – in which
students must distinguish
between changes in demand and
quantity demanded, and
changes in supply and quantity
supplied.

Macroeconomics
  Provide practice problems in
which students compose
narrative explanations based on
graphic models, and graphs
based on narratives.

Weeks 7-8 At the end of the week, the pre- D. National Income Accounting
service teacher (PST) should be able [A]
to: 1. Approaches to National Income  Lecture-discussion using  Written objective test/essay on 1.1.1
Accounting PowerPoint Presentation and demand, supply, and elasticity 5.1.1
a. discuss and identify the different 1.1.1 a. Income Approach video clips on national of demand and supply
approaches to national income b. Expenditure approach income accounting
accounting; c. Industrial Origin Approach  Oral recitation on their 1.1.1
b. discuss the nature, purpose and 1.1.1 2. GNP Accounting:  Misconception Check. Discover insight from media search 4.5.1
limitations of GNP accounting; Meaning, Purpose and class’ preconceptions. Useful 1.7.1
c. distinguish GNP from GDP, 1.1.1 Limitations for starting lessons in
Money GNP from Real GNP; 3. GNP vs. GDP economics.
d. compute money GNP and real 1.4.1 4. Money GNP vs. Real GNP
GNP; and  Worksheets for calculations
e. interpret GNP as a measure for 1.1.1
economic growth.  Media Searching. Obtain the
latest data from broadsheet,
tabloid, online news, or
websites, which compare GNP
with other factors in
industrialized and developing
countries.
Weeks 9-10 At the end of these weeks, the pre- E. CONSUMPTION, SAVINGS
service teacher (PST) should be able [A] AND INVESTMENT
to:
1. Factors of Consumption  Lecture-discussion using  Written objective test/essay 1.1.1
a. discuss and identify the different 1.1.1 2. Consumption Function PowerPoint Presentation consumption, savings and 5.1.1
factors of consumption; 3. Other Concepts of Consumption and video clips on investment
b. discuss the consumption 1.1.1 a. Equi-Marginal Principle consumption, savings and
function; 1.1.1 b. Income and investment
c. identify and distinguish the Substitution Effects
different concepts of 1.1.1 4. Investment, Its Determinants  Misconception Check. Discover
consumption; 5. Savings and Investment class’ preconceptions. Useful
d. discuss savings, investments, and 1.1.1 6. Multiplier and Accelerator for starting lessons in
their determinants; and 1.1.1 7. The Paradox of Thrift economics.
e. discuss multiplier and accelerator
f. explain the paradox of thrift.  Real World. Have students discuss
in class how a concept on

Macroeconomics
consumption, savings, and

Macroeconomics
 investment relate to a real-world
application or product.

Weeks F. MACROECONOMIC
11-13 At the end of these weeks, the pre- [A,B] INSTABILITY: UNEMPLOYMENT
service teacher (PST) should be able AND INFLATION
to:
1. Areas of Labor Problem  Lecture-discussion using  Written objective test/essay 1.1.1
a. differentiate between 1.1.1 a. Unemployment PowerPoint Presentation and
unemployment, a.1 Unemployment vs. video clips on macroeconomic
underemployment and full Under/Full employment instability, unemployment and
employment; 1.1.1 a.2 Causes/Types inflation.  Vlogging. Output will be a 1.3.1
b. explain the causes, types, effects of Unemployment reflection paper on the causes of 4.5.1
and measurement of a.3 Other Causes  Three-minute Video Blogging or unemployment in their areas. 1.1.1
unemployment; 1.1.1 of Unemployment VLOGging, three times a week, on
c. identify the types of wages; 1.1.1 a.4. Economic and Non- the condition of unemployment  Recitation on the content of 1.1.1
d. Explain Lorenz curve and relate economic Costs of Unemployment in their areas, based on an the speech/dialogue or insights 1.7.1
the concept to income a.5 Measuring Unemployment approved interview schedule on the issue on inflation
distribution in the Philippines; 1.1.1 b. Inadequacy of Wages
e. define labor union; 1.1.1 b.1 Types of Wages  Gap Exercises. Students
f. explain what collective b.2 Lorenz Curve freewrite for three minutes on
bargaining is; 1.1.1 c. Industrial and “what is” versus “what should
g. explain industrial unrest and its Labor Management be” in the wages of Filipino
implication to the labor sector; 1.1.1 Conflict workers, then debrief in threes.
h. differentiate between inflation c.1 Labor Unionism When it’s a student’s turn, he or
and deflation; 1.1.1 and Collective Bargaining she summarizes his or her
i. explain the causes, effects and c.2 Industrial Unrest freewrite and then is silent and
measures to curb inflation; and 1.4.1 c.3 Settling Industrial Disputes listens as the other two ask
j. calculate the purchasing power d. Economic Insecurities questions only (give no advice,
of the peso and inflation rate. do not swap stories), then work
2. Inflation: Defined and Measured around the group every couple
a. Inflation vs. Deflation of minutes. Someone will report
b. Measuring Inflation his/her notes on “what is” versus
c. Causes: Theories of Inflation “what should be”
d. Redistributive Effects of
Inflation  Provocative Picture. Begin the  Output will be a reflection paper 1.1.1;
e. Measures to Curb Inflation lecture with a picture meant to on their preference of time (past 1.5.1
provoke discussion or or present) based on the results
emotion. Option: caricature of prices of products, and the
or cartoon answers from the interview.
 Livestream video clips of the
Philippine Senate in plenary
session on Philippine inflation, or

Macroeconomics
 interview with officials of Bangko
Sentral ng Pilipinas (BSP) on
inflation issues, and others

 Video clips on Industrial and

Labor Management Conflict in
the Philippine setting

 Case analysis of settling

industrial disputes

 Interview with
grandparents/elders and younger
generation regarding the past
and present situations of different
products and prices. Approved
guide questions will be used.
Compare the results of different
times from the interview form.

Grandparents/elders
Year Product Price
1.
Younger Generation
Year Product Price
1.
Weeks At the end of these weeks, the pre- G. MONEY, BANKING AND
14-15 service teacher (PST) should be able [A] MONETARY POLICY
to:
1. Functions of Money and
a. discuss the functions of money, 1.1.1 Money Supply  Misconception Check. Discover  Written objective test/essay on 1.1.1
money supply, the Central Bank; 2. Money and the Central Bank class’ preconceptions. Useful for money, banking and monetary 5.1.1
and 3. Functions of a Central Bank starting new lessons in policy 4.5.1
b. explain the monetary policies 1.1.1 4. Monetary Policies and economics.
and their limitations. their Limitations

 PowerPoint Presentation and  Media Searching. Output will be 1.1.1

video on money, banking reflection paper 1.3.1
and monetary policy

Macroeconomics
Weeks 16- At the end of the week, the pre- H. FISCAL POLICY
17 service teacher (PST) should be able [A,B]
to: 1. Fiscal Functions
2. Sources and Uses of
a. define fiscal policy; 1.1.1 Public Funds  Misconception Check. Discover  Written objective test/essay on 1.1.1
b. explain the sources and uses of 1.1.1 3. Principles of Taxation class’ preconceptions. Useful for fiscal policy 5.1.1
public funds; 4. Approaches to starting the lesson in fiscal 4.5.1
c. explain the principles of taxation; 1.1.1 Equitable Taxation policy
and 5. Uses and Objectives of
d. explain the objectives as well as 1.1.1 Fiscal Policy  PowerPoint Presentation
shortcoming of fiscal policies. 6. Shortcomings of Fiscal Policies and video clips on fiscal
policy

 Reality Check. Observing and

reporting to the class the
sources of government/public
structures, etc.

 Media Check. Search for the

content of official websites of
DBM, and other government
agency websites for updates
on budget of expenditures
and sources of financing  Survey Results. Output will be
reflection paper on the effects of
 Debate about the Tax Reform for TRAIN Law in the Philippines 1.1.1
Acceleration and Inclusion (TRAIN) 1.2.1
Law 6.1.1

 Survey on the effects of TRAIN

Law on different sectors in
their municipality/city
Week 18 At the end of the week, the pre- I. INTERNATIONAL TRADE
service teacher (PST) should be able PRACTICES AND POLICIES
to: [A,C]
1. Bases of International Trade  PowerPoint Presentation and  Written objective test/essay on 1.1.1
a. define trade, international trade; 1.1.1 2. Balance of Trade/Payments video clips on international international trade practices 5.1.1
b. explain the bases of international 1.1.1 3. Trade Barriers trade practices and policies and policies 1.5.1
trade; 4. Other Arguments for Trade 1.2.1
c. differentiate between Balance of 1.1.1 Barriers
Trade and Balance of Payments;

Macroeconomics
d. identify and explain the different 1.1.1  The Trade Game.  Oral recitation on the bases of 1.1.1
trade barriers; and - Divide the class into five international trade, difference 1.2.1
e. conduct a survey of small-scale 1.1.1; groups and assign each between Balance of Trade and 1.7.1
business/entrepreneurs on the 1.2.1; group one of the following Balance of Payments, and
challenges encountered. 1.5.1 countries: United Kingdom, different trade barriers
China, Colombia, Saudi
Arabia, and Ghana. List the
following exports and their
values on the board for
reference during trading:
Gold—5 points per unit; Oil—4
points per unit; Lumber—3
points per unit; Electronics—
2 points per unit; Coffee—1
point per unit.
- Tell students that the
objective is for each student
to get the most points by
trading their country’s
goods for products from
another country. Each team
will start with a set of
trading cards that represents
their country’s worth. The
game allows for “free trade,”
meaning any country can
trade with another country,
and any item and/or amount
of product can be traded for
another. Explain to students
that they can creatively market
their products or combine
products to end up with
something more desirable.
- Allow for ten minutes of
open trading. Then announce
the following: WORLD
SITUATION: The world is
running out of oil, making oil
extremely rare and much
more expensive. OUTCOME:
The worth of oil increases by

Macroeconomics
two points. Update the point
system on the board to
reflect the increase in points
per unit for oil.

Macroeconomics
 - Offer the following world
situation and outcome to
see how it impacts the final
results:
- WORLD SITUATION:
Ghana learns to make
counterfeit electronics,
making its electronics
cheaper.  Survey Result. Output will be a 1.1.1
- OUTCOME: Ghana reflection paper on the challenges 1.2.1
takes one electronic encountered by small-scale 6.1.1
unit from each business/ entrepreneurs on trade
country. practices and policies in the
Philippines.
Re-tally the points and figure out who
got the most points. Ask insight
questions, and proceed with the
discussion.

 Conduct a survey of small-scale

business/entrepreneurs on the
challenges encountered on
trade
practices and policies in the
Philippines
Suggested References

Macroeconomics
Azanza, P. A. (2001). Economics, society and development. Mandaluyong City: National Bookstore.

Fajardo, F. R. (1995). Economic development. Manila: National Bookstore.

Mc Connell, C. R. & Brue, S. L. (1996). Economics: principles, problems and policies. Mc Graw-Hill,

Inc. Miranda, G. (2001). Introductory economics. Manila: L & G. Business House, 3rd Revised Edition

Pagoso, C. M. (1996). Introductory economics. Manila: Rex Bookstore.

Ramos, C. C. R. (2003). Globalization and technology. Manila Rex Bookstore

Resurreccion, C. O. (1996). Basic economic concepts in Philippine context. Quezon City: Phoenix Press Inc.

Tullao, T. S., Jr. (1995). Understanding economics in the Philippines setting. Quezon City: Phoenix Publishing House.

Villegas, B. M. (2001). Guide to economics for Filipinos. Manila: Sinagtala Publishers, Inc

Resource Pack for Economics Curriculum. https://cd1.edb.hkedcity.net/cd/pshe/resources/econ_income_inequality/English%20Version/index_e.htm

Macroeconomics