Course Outline

Programme
B.S Accounting & Finance
Semester 2nd
Course Macro Economics
Title
Course
Code
Credit 45 (3 hour per week)
Hours

Course Description:
The Economics is much too interesting to be left to the professional economists. The course has been designed to
make students aware of the macroeconomic aspects and to make their approach broader and more analytical
towards such indicators.

Course Objectives
1. To develop in students a clear understanding of Macro Economics concepts and indicators.
2. To equip them with adequate knowledge so that they have an informed and comprehensive understanding
of the building blocks and drivers of National Economy
Learning Outcomes
 Use appropriate macroeconomic tools to model the market and determine possible outcomes of changing
economic behavior and aid in the development and analysis of policy.
 Make decisions and reach rational conclusions in a systematic and rational manner within an environment of
constraints.
 Calculate, analyze and interpret different types of economic and financial data to extract useful information for
optimal decision-making.
 Interpret and use the language and terminology of economics.
 Use the various models, mathematics and graphical functional forms to prove and test decisions/outcomes.
 Analyze problems and identify possible alternative outcomes depending on assumptions made.
 Imagine the implications of decisions and actions based on alternative schools of thought.
 Provide policy alternatives to address various economic outcomes.
 Analyze actual economic events within modelling frameworks.
 Appreciate that economic theory evolves out of actual economic events.
 Interpret the work of others and be able to evaluate and respond to it.
 Determine the effectiveness and appropriateness of government policy intervention.

Course Content
Topic Lec. 1 Books Recommended
hour
1. National Income Accounting 02 Book 2 Ch. 5
Concept of GNP, GDP circular flow of National Income,
Measuring Total Output and Income Measures (Value Addition
Criteria, Income and Expenditure Approach, Precautions and
cares to be taken in calculation.
2. Money and Inflation 02 Book 2 Ch 12
Functions and Forms of Money, Demand for and Supply of Book 1 Ch 13
Money, Financial Markets and the Economy.
Significances, Inflationary and Anti-Inflationary measures along
with AS/AD model, Demand Pull and Cost Push inflation.
Quantity Theory of Money, Crude and Sophisticated Version, 03 Book 2 Ch 12
Value of Money, Inflation, Unemployment, Velocity of Money, Book 1 Ch 13
How Banks Create Money its limitations, Quantity Theory of
Money and AS and AD Model

3. Determinants of National Income 08 Book 2 Ch8

Consumption, Saving and Investment. Aggregate Supply Book 3 Ch20 & 25
and Aggregate Demand Model, Components of AD, AD Book 1 Ch 7
and National Output, Adjustment to equilibrium, factor
shifting AS and AD, Demand and Supply Shocks,
Investment and Economic Activity, Determination of
Equilibrium Level Income, Consumption and the Aggregate
Expenditures Model Multiplier and Accelerator Effect.
Inflationary Gap. Deflationary Gap.
11. Unemployment 04 Book 1 Ch8
Book 2 Ch6
 Issues, dimension and types, Theories of unemployment Book 3 Ch 27
Book 4 Ch15
4. Balance of Payment 02 Book 1 Ch19
Significances, Current, Financial and Capital Account, Book 2 Ch 18
equilibrium and disequilibrium. Book 4 ch13
5. Exchange Rate 02 Book1 Ch19
Types and Determination of Exchange Rate, Book 2 Ch11
Difference among Fixed, Floating and Managed Exchange rates. Book 3 Ch 28
Demand and Supply of Currency in FEM. Variations in ER eq. in
FEM.
6. Pakistan’s Macro Economic Indicators-I 04 Internet Access
Economic Growth and Development, Rostow’s Five stages
of Growth, Inequality, Poverty, and Discrimination, Vicious
Circle of Poverty, Current status of Pak. Economy
(Economic Survey)
7- Pakistan’s Macro Economic Indicators-II 03
Trade Balances, Fiscal and Monetary Policy Statement.
Contemporary Scenario focusing the China-Pak Economic
Corridor (CPEC) Projects as a game changer in the region.

Recommended Text (Books are old)

1. N. Gregory Mankiw :(2019) Principles of Macroeconomics, 10e. South-Western- a part of Cengage
Learning. https://www.macmillanlearning.com/college/us/product/Macroeconomics/p/1319105998
2. Parkin Michael (2019) Principles of Macroeconomics 13 th edition, Pearson. New York.
3. Paul Krugman and Robin Wells (2018) Macroeconomics 5th edition New York W.W. Norton
4. Karl E. Case, Ray C. Fair, Sharon M. Oster (2012) Prentice Hall.
5. Samuelson, Paul Anthony, (2015) Economics / Paul A. Samuelson, William D. Nordhaus. — 19th ed.
p. cm.—(The McGraw-Hill series economics) Mc Graw Hill. Internet Material available online at
http://pombo.free.fr/samunord19.pdf
6. O' Sullivan (2016) Macroeconomics Principles, Applications, and Tools 8 th ed.
 Ministry of Finance www.finance.org.pk
State Bank of Pakistan www.sbp.org.pk

Further Suggested Readings

1. Husain (2016) Pakistan: The Economy of An Elitist State 2/Ed.
2. Uddin (2018) Pakistan's Economic Journey Need For A New Paradigm.
3. Frank Robert. H, Bernanke S. Ben (2014) Principles of Macro Economics 5 th edition The McGraw Hill
4. Evans K. Michael (Latest Edition) Macro Economics for Managers Black Well Publications available
onlinehttp://eprints.stiperdharmawacana.ac.id/186/1/Michael%20K%20Evans%20-%20Macroeconomics
%20for%20Managers.pdf

Teaching Methods/Class Activities

Students should actively engage in the learning process and in putting concepts learnt into practice through
action learning, lectures, and readings learning modes:

A. LecturesClass sessions will involve lectures, video shows, case studies, assignments, quizzes, discussions
and debates, and presentations of related topics and current issues related to course contents.
B. ReadingsThis is the responsibility of all students. Students should read the relevant chapters of the textbook,
materials, and information on indicated websites before class. They should be prepared to raise questions and
arguments in class on related topics in the class schedule.

STUDENT EVALUATIONS & GRADES

TheBreakup of marks and final grade is based Final Grade Grade Mark
upon:
Mid-Term Exam  30% A+ 90-100
Final Exam 50% A 80-89
Sessionals 20% B+ 75-79
Total 100% B 70-74
B 65-69
C+ 60-64
C 50-59
F Below 50