INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

COURSE OUTLINE

Kulliyyah Economics and Management Services

Department Economics

Bachelor of Accounting/ Bachelor of Business Administration/Bachelor

Programme
of Economics

Name of Course / Mode Principles of Macroeconomics

Course Code ECON1610

Dr. Noorihsan Mohamad (Section 3, 4 & 5)

Name (s) of Academic staff /
Dr. Haniza Khalid (Section 1 & 2)
Instructor(s)
Prof. Dr. Jarita Duasa (Section 6 & 7) – coodinator

Rationale for the inclusion

This course provides basic understanding and knowledge on economics
of the course / module in the
principles for business, economics and accounting students
programme

Semester and Year Offered Semester 1 & 2, Year 1

Status Core

Level Undergraduate

Proposed Start Date Semester 1, 2016/2017

Batch of Student to be
Intake of Semester 1 2016/2017 onwards
Affected

Face to Independent Formal

Face Learning Assessment
L Con F
O Total Guided
e tinu in
Dis Assess t and
c ous al
Total Student Learning cus ments h Independent
t Ass E
Time (SLT) sio Prepar e Learning
u ess x
n ation r
r me a
s
e nts m

36 6 25 45 5 3 120
Credit Value / Hours 3 Credit Hours

Pre-requisites (if any) None

Co-requisites (if any) None

The objectives of this course are to:

1. Introduce to students the macroeconomic concepts,
measurements, and simple macroeconomic models
2. Help students to understand the principles essential to solve
Course Objectives economic problems and policy alternatives.
3. Introduce the instruments and mechanisms of banking system
and the operation of fiscal and monetary policy
4. Introduce the basic concepts in international trade and finance as
well as the concepts of macroeconomics in Islamic perspective

Upon completion of this course, students should be able to:

1. Identify and realize the importance of understanding of basic
macroeconomic concepts (C2,A2LL2)
2. Evaluate the macroeconomics conditions and identify probable
Learning Outcomes cause of macroeconomic disequilibrium (C3,A3,CT2)
3. Recognize the appropriate macroeconomics policies and its
alternative solutions (C3, A3,LL2
4. Analyse the probable problems and issues faced by open economy
which engaged in international trade. (C3, A2,CT2,LL2)

How they are Assessment

Skills
developed method
Academic Lectures Written Assessment
Synthesize data Quizzes on
Topical exercises
and concepts selected topics
Transferable Skills: Information
Information
literacy and Assignments
management
collection
Identify problems
Analyse short
and provide Discussion
problems
solutions
 T&L / Assessment Strategies Description

Teaching-learning strategies Lectures, discussions

Teaching-Learning and
assessment strategy Group assignment
Assessment strategies
Quizzes on selected topics
Mid-term exam
Final exam

The course begins with an introduction to the basic concepts in

macroeconomics, followed by discussions on national income
Course Synopsis accounting, determination of national income, employment, inflation
and fiscal policy; money, banking and monetary policy; and
international trade, balance of payments and exchange rates.

Mode of Delivery Lectures, class discussions, reading, assignments, and exercises.

LO Method %
Assessment Methods and 1,2,3,4 Mid Semester Examination 25
Type/Course Assessments 1,2,3,4 Assignment, Tests, Quizzes 25
State weightage of each type
of assessment. 1,2,3,4 Final Examination 50
1,2,3,4 Total 100

Mapping of course / module to the Programme Learning Outcomes

Programme Outcomes
Learning Outcome of the course 0
02 03
0 0 0
07 08 09
10
1 4 5 6

Identify and realize the importance of understanding

✔ ✔ ✔ ✔
of basic macroeconomic concepts
Evaluate the macroeconomics conditions and
identify probable cause of macroeconomic ✔ ✔ ✔ ✔ ✔ ✔
disequilibrium
Recognize the appropriate macroeconomics policies ✔
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
and its alternative solutions
Analyse the probable problems and issues faced by ✔
✔ ✔ ✔ ✔ ✔ ✔ ✔
open economy which engaged in international trade.

Content outline of the course / module and the SLT per topic
Week Learning
Topics Task/Reading
s Hours
1 6 Ch. 1 & 2
Macroeconomic Overview
 (McConnel,Brue
▪ Scarcity; Production Possibilities Curve; Growth
& Flynn)
▪ The Market System AND Circular Flow of Incomes

▪ Islamic Economic System

Measurement of Domestic Output and National

Income
▪ Concept of Gross Domestic Product (GDP)

▪ The Expenditure & Income Approaches Ch. 25

2 9 (McConnel,Brue
▪ Nominal GDP versus Real GDP & Flynn)

▪ Price Level & the GDP Deflator

▪ Limitations of GDP Measure

Business Cycles, Economic Growth and Instability

▪ The Business Cycles Ch. 27
3 9 (McConnel,Brue
▪ Unemployment; Inflation & Flynn)
▪ Redistribution effects of Inflation

Basic Macroeconomic Relationships

▪ Income-Consumption, Income-Saving Relationships
Ch. 28
4 ▪ Interest Rate-Investment Relationships 9 (McConnel,Brue
& Flynn)
▪ Shifts of Investment Demand Curve

▪ Multiplier Effect

The Aggregate Expenditures Model

▪ Consumption & Investment Schedules Ch. 29
5-6 18 (McConnel,Brue
▪ Equilibrium GDP & Flynn)
▪ Changes in Equilibrium GDP and the Multiplier

Aggregate Demand & Aggregate Supply Ch. 30

7 ▪ Aggregate Demand; Aggregate Supply; 9 (McConnel,Brue
& Flynn)
▪ Equilibrium in the AD-AS Model
 ▪ Changes in Equilibrium

Fiscal Policy
▪ Government Budget
Ch. 31
8 ▪ Automatic & Discretionary Fiscal Policy 10 (McConnel,Brue
& Flynn)
▪ Built-in Stability

▪ Public Debt

Money, Banking and Financial Institutions, Money

Creation
▪ Functions & Measures of Money
Ch. 32, 33
9 ▪ Federal Reserves and the Banking System 10 (McConnel,Brue &
Flynn)
▪ How Commercial Banks Create Money

▪ Islamic Banking: Introduction

Monetary Policy & Stabilization

Ch. 34
▪ Money Supply, Money Demand, & Interest Rates;
10-11 18 (McConnel,Brue
▪ Central Bank & Tools of Monetary Policy
& Flynn)
▪ Monetary Policy

International Economics
▪ The Law of Comparative Advantage Ch. 38
12 12 (McConnel,Brue
▪ Gains from Trade & Flynn)
▪ Arguments for Protectionism

Balance of Payments and Exchange Rates

▪ International financial transactions
Ch. 39
13-14 ▪ The Balance of Payments 10 (McConnel,Brue
& Flynn)
▪ Fixed Exchange Rates

▪ Flexible Exchange Rates

Main references supporting the course

Required
McConnell, C., Brue, S.L. & Flynn, S.M. (2015). Economics (20th ed.). New York: McGraw Hill. (M,
B & F)

Additional references supporting the course

Recommended
Case, Karl E., Fair, Ray C. & Oster, Sharon M., (2009). Principles of Economics. 9th Edition, Pearson
Education International.

Frank, Robert H., Bernanke, Ben S, Gan, Lydia L. & Chen Kang (2009). Principles of Economics
(Asian Edition), New York: McGraw Hill.

Mankiw, Gregory N., Soo Khoon, Goh Hway Boon, Ong., Siew Hwa, yen., Ming Yu, Cheng., Mohd
Mustafa, Muszafarshah. & Lee Lean EE, Yvonne., (2013). Principles of Macroeconomics
(Malaysia Edition), Cengage Learning Asia Pte Ltd.

Parkin, Michael (2013). Economics. 11th Global Edition, Pearson Education Inc.

Tahir, S. et. al. (Eds.). (1992). Readings in Microeconomics: An Islamic Perspective. Petaling Jaya,
Malaysia: Longman.

Prepared by: Checked by: Approved by:

Prof. Dr. Jarita Duasa Dr. Mohd Nahar Mohd
Course Coordinator Arshad
Kulliyyah of Economics & Head
Management Sciences Dept. of Economics
Kulliyyah of Economics &
Management Sciences
Prof. Dr. Maliah Sulaiman
Dean
Kulliyyah of Economics &
Management Sciences
At the end of the programme, students are able to:

Demonstrate an understanding of economic knowledge both from

1. conventional and Islamic perspectives and awareness of contemporary Knowledge
development of the discipline.

Utilize quantitative and qualitative techniques and creative thinking to

2. Practical Skills
solve economic problems.

Cooperate with others in providing solution to problem faced in socially Social skills and
3.
responsible manner for the progress of the nation and the ummah. Responsibilities

Value,
Demonstrate behavior consistent with professional ethics and Attitudes,
4.
Islamic values. Professionalis
m
Communicatio
5. Demonstrate effective communication skills with mutual respect. n
Problem
6. Develop, implement and evaluate basic strategies and action plan. Solving and
Scientific Skill
Information
Recognize the importance of continuing professional development Management
7.
and changes in economics. and Lifelong
Learning

Managerial and
8. Be creative and innovative in managerial and entrepreneurial endeavors.
Entrepreneurial

Leadership and
9. Demonstrate effective leadership skills imbued with Islamic value.
Team Skills

Islamisation of
Islamisation of knowledge; integrating the values, principles, and
10. Knowledge
practices of Islam into the field of banking and finance
(IOK)
(MQA References) At the end of the programme, Students are able to:

1. Knowledge: Demonstrate familiarity with established knowledge in the field of Economics and awareness of current development therein.

2. Practical Skills: Use relevant skills learnt in Economics for professional and personal development.

3. Social skills and Responsibilities: Cooperate with others and apply knowledge in a socially responsible manner for the progress of the nation and
the ummah.

4. Value, Attitudes and Professionalism: Demonstrate commitment to ethics, autonomy and professionalism in the workplace and everyday life.

5. Communication, Leadership and Team Skills: Communicate with people from a diverse range of backgrounds with empathy, showing leadership
qualities.

6. Problem Solving and Scientific Skills: Analyse issues and demonstrate skilfulness in planning, executing and evaluating strategies and action
plans.

7. Information Management and Lifelong Learning Skills: Use the necessary learning skills in information management and apply effective
strategies for lifelong self-improvement.

8. Managerial and Entrepreneurial Skills: Apply basic managerial and entrepreneurial skills in relevant fields.