NATIONAL OPEN UNIVERSITY OF NIGERIA 
                            
                            
                            
                            
             PRINCIPLE OF ECONOMICS II 
                        ECO 122 
                            
          
               SCHOOL OF ARTS AND SOCIAL SCIENCES 
          
          
          
          
                       COURSE GUIDE 
          
                      Course Developer: 
                    Samuel Olumuyiwa Olusanya 
             Economics Department, National Open University of Nigeria 
          
          
          
          
          
          
          
          
          
          
          
          
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         CONTENT 
        Introduction 
        Course Content 
        Course Aims 
        Course Objectives 
        Working through This Course 
        Course Materials 
        Study Units 
        Textbooks and References 
        Assignment File 
        Presentation Schedule 
        Assessment 
        Tutor-Marked Assignment (TMAs) 
        Final Examination and Grading 
        Course Marking Scheme 
        Course Overview 
        How to Get the Most from This Course 
        Tutors and Tutorials 
        Summary 
         
          
         Introduction 
         Welcome to ECO: 122 PRINCIPLE OF ECONOMICS II. 
         ECO  122:  Principle  of  Economics  II  is  a  three-credit  and  one-semester 
         undergraduate course for Economics student. The course is made up of twenty-
         one units spread across fifteen lectures weeks. This course guide gives you an 
         insight  to  introduction  to  macroeconomics  in  an  elementary  way  and  how  to 
         study the economy in larger dimension. It tells you about the course materials 
         and  how  you  can  work  your  way  through  these  materials.  It  suggests  some 
         general guidelines for the amount of time required of you on each unit in order to 
         achieve  the  course  aims  and  objectives  successfully.  Answers  to  your  tutor 
         marked assignments (TMAs) are therein already. 
         
        Course Content 
        This course is basically an introductory course on Macro-economics. The topics 
        covered include the field of macroeconomics; National income accounting; money 
        and  banking;  components  of  gross  domestic  product;  aggregate  demand  and 
        aggregate supply; government and the economy; open economy macroeconomics. 
          
          
          
          
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         Course Aims 
         The  aims  of  this  course  is  to  give  you  in-depth  understanding  of  the 
         macroeconomics as regards 
            Fundamental concept  and practices of macroeconomics 
            To familiarize students with national income accounting  
               
            To stimulate student’s knowledge of money and banking 
            
            To make the students to understand the components of gross domestic 
           product  
              
            To expose the students to differences between aggregate demand and 
           aggregate supply 
         
            To ensure that the students know more about the government and the 
           economy. 
         
            To make the students to understand the open economy in a 
           macroeconomics context.  
          
         Course Objectives 
        To achieve the aims of this course, there are overall objectives which the course is 
        out  to  achieve  though,  there  are  set  out  objectives  for  each  unit.  The  unit 
        objectives are included at the beginning of a unit; you should read them before you 
        start working through the unit. You may want to refer to them during your study of 
        the unit to check on your progress. You should always look at the unit objectives 
        after completing a unit. This is to assist the students in accomplishing the tasks 
        entailed in this course. In this way,  you can be sure you have done what was 
        required  of  you  by  the  unit.  The  objectives  serves  as  study  guides,  such  that 
        student could know if he is able to grab the knowledge of each unit through the 
        sets of objectives in each one. At the end of the course period, the students are 
        expected to be able to:  
            Define and understand the meaning of Macroeconomics as a field of study 
           and  know  the  basic  macroeconomics  concepts,  as  well  as  distinguish 
           between Microeconomics and Macroeconomics. 
             
            Understand  the  transition  from  Microeconomics  to  Macroeconomics 
           analysis with various reasons why macroeconomics analysis is important 
           and understand how macroeconomics works in an economy. 
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            Understand the terms and measurement of national income as well as the 
           importance  of  national  income  and  understand  the  meaning  of 
           Consumption and its Components. 
                                    
            Understand the meaning of Savings and its Components and Investment 
           and its Components as well as to understand the meaning of Economic 
           Welfare and National income. 
                                 
            Understand  the  Relationship  between  Economic  Welfare  and  National 
           income and to understand the meaning of Money and the History of money 
           with  its  Characteristics,  Functions  and  types  of  Money  as  well  as  the 
           Keynesian Motive of Holding Money. 
             
            Understand the History of Nigeria Banking System and the meaning of 
           Commercial bank and its functions as well as the Growth and Development 
           of Commercial Bank in Nigeria. 
         
            Understand Merchant banking in Nigeria and to know the Evolution of 
           Central Bank in Nigeria and the world at large. However, to also know the 
           Functions  of  Central  Bank  as  well  as  the  Relationship  between  Central 
           Bank and the government. 
         
            Understand the Concept of personal consumption expenditure and to know 
           the concept of Gross private domestic investment and net exports with the 
           concept of Government Consumption and Gross investment. 
         
            Understand  the  meaning  and  concept  of  Gross  Private  Domestic 
           Investment,  to  know  the  meaning  and  concept  of  Net  Export  and 
           understand the how to measure Gross private domestic investment and net 
           exports. 
         
            Understand the meaning and concept of Government Consumption and to 
           understand the National accounts Measurement of Government as well as 
           to know the meaning and concept of Gross Investment. 
         
            Understand the meaning and nature of aggregate demand and its Curve as 
           well as the differences between short-run and long-run aggregate demand 
           and supply. 
            
         
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