GRADING BREAKUP AND POLICY

Assignment(s):
Home Work: 10%
Quiz(s): 20%
Class Participation: 5%
Attendance:
Midterm Examination: 25%
Project:
Final Examination: 40%

EXAMINATION DETAIL

Yes/No: YES
Combine Separate: Combine
Midterm
Duration: 120 minutes
Exam
Preferred Date:
Exam Specifications: closed books and closed notes

Yes/No: YES
Combine Separate: Combine
Final Exam Duration: 120 minutes
Exam Specifications: closed books closed notes
 Lahore University of Management Sciences
COURSE OVERVIEW
RECOMMENDED
WEEK TOPICS
READINGS
Measurement and Structure of the National Economy Chapter 1, 2 (MK)
Introduction
National Income Accounting: The Measurement of Production,
1 Income, and Expenditure
Gross Domestic Product
Detailed analysis of its components

Aggregate Demand Chapter 9 (MK)

Keynesian cross
Consumption, Investment, Government Expenditure
2,3,4,5
Goods Market Equilibrium
Fiscal Policy, Multiplier, Government budget deficit
Derivation of the IS curve

Money Chapter 9 (MK)

Demand for and Supply of Money
6,7
Money Market Equilibrium
Derivation of the LM curve

General Equilibrium Chapter 10 (MK)

Equilibrium interest rate and output
Fiscal policy and crowding out
Monetary policy
Fiscal and Monetary policy mix
Rule vs. Discretion and Taylor Rule
Derivation of AD curve
Long-run Aggregate supply curve
Long-run Analysis of fiscal and monetary policy
8,9,10

The Open Economy Chapter 13 (MK)

Exchange rate, Purchasing power parity, interest rate parity
Keynesian cross in an open economy, Fiscal policy in open Economy
IS-LM model in open economy and fiscal and monetary policies
11,12

Economic Growth Chapter 4 (MK)

The Accumulation of Capital, Golden rule level of Capital
Population Growth, Technological Progress
13,14
Saving, Growth, and Economic Policy
 Lahore University of Management Sciences

TEXTBOOK(S)/SUPPLEMENTARY READING
th
Mankiw N. G. , Macroeconomics, 7 Edition (or earlier versions, Worth (MK))