Jindal Global Business School

Course Outline

Course Title Macroeconomics

Core or Elective Core
Program and Batch BBA-2020, Sem-1, Sec A, B, C, D, E
Semester &Academic Year Spring-2021
Credits 3
Discipline/Area Social Sciences and Humanities
Provide details, if this course is a Prerequisite for Prerequisite for Business, Govt & Society
any course/specialization
Name of the Faculty Member/Course Instructor Sec A – Prof. Sudip Patra
Sec B – Prof. Hanna Olasiuk
Sec C – Prof. Vishruti Gupta
Sec D & E– Prof. Suganya Balakumar
Contact Details of the Faculty Member spatra@jgu.edu.in
holasiuk@jgu.edu.in
vishruti@jgu.edu.in
sbalakumar@jgu.edu.in
Contact Details of Support Staff Pranati Dash – pdash@jgu.edu.in
Faculty Member’s Open Office Day/s & Time Dr Sudip Patra, TBD
Dr. Hanna Olasiuk, TBD
Dr. Vishruti Gupta, TBD
Dr. Suganya Balakumar, Wednesday 11.30-
12.30

INTRODUCTION TO THE COURSE

Macroeconomics is the study of an economy at the aggregate level. A sound knowledge of this subject
enables one to interpret major economic problems and issues of the day. This is not just relevant for
business decision making but also to understand the economic events intertwined with our day to day
lives. The best way to appreciate this subject actually stems from reading newspaper articles.
Before taking this course student should learn Business Math, Micro Economics, History of World Trade
and Commerce.
 COURSE LEARNING OBJECTIVES
Course Learning Program Learning Program Competency Course Assessment
Objectives (CLOs) Objectives (PLOs) Goals (PCGs) Item
On successful This course helps you to This course helps you to This learning
completion of the develop the following develop the following outcome will be
course, students should Program Learning Program Competency assessed in the
be able to: Outcomes: Goals: following items
CLO 1. Understand key PLO-1, PLO-4 PCG-1 A1, A2, A3, A4
issues in PLO-8 PCG-3
Macroeconomics in
management settings
CLO 2. Develop a PLO-8, PLO-9 PCG-3 A1, A2, A3, A4
perspective that is PLO-10
supported with relevant
information and
integrative thinking, to
draw and assess
conclusions.
CLO 3. Identify key PLO-1 PCG-1 A1, A2, A3, A4
relevant global issues PLO-2, PLO-8, PCG-3
and analyze the impact PLO-9, PLO-10
of the global
environment on
Macroeconomics, as
compared with domestic
market
CLO 4. PLO-5 PCG-2 A1, A2, A3, A4,
Communicate verbally PLO-6 PCG-4
and in writing in an PLO-12
organized, clear,
persuasive manner,
work in groups
effectively on the
problems related to
Macroeconomics

TEACHING METHOD
A mix of classroom instructional methods will be used like lectures, real world problems, simulations and
immersive exercises. The efforts would be made to strengthen the conceptual knowledge and application
through examples and exercises. Special Emphasis will be given to help the students to develop analytical
ability to analyze macroeconomic situations, trends and policies. This will be done with the help of
practical exercises. Interactive discussions and small individual or group work in class will also be
employed to improve learning efficacy and student motivation.

EVLUATION SCHEMA
Given below the evaluation schema for (i) Online mode and (ii) Offline – on-campus mode.

(i) Online mode

The course grade will be determined on the basis of

Assessment Task Weightage Nature Week of PLOs to be Assessed

Assessment
A1. Class participation 15% Individual 2-14 PLO-7, PLO-11, PLO-
12
A2. Quiz 15% Individual 9 (session 18) PLO-2, PLO-10, PLO-
11, PLO-12
A3. Assignment 20% Group 14 PLO-3, PLO-5, PLO-7
A4. End-term examination 50% Individual Exam week PLO-3, PLO-5, PLO-7

Description of Assessments:

A1. Class Participation. Students class participation is assessed based on their participation in the
discussion groups and their participation during the guest lectures. During the course of the program the
course instructor assigns a topic for group discussion during the class hour. The students are assessed
based on their discussions, arguments and active participation during the discussion group activity. This
activity carries 10% weightage in the assessment.

For the rest 5% assessment, the students are expected to actively participate and interact during the two
guest lecture sessions during the program. Active contribution of the students earns them points.

A2. Quiz will be conducted using Moodle platform. Limited time will be given to answer the set of
MCQs. This activity carries 15% weightage in the assessment. The MCQs will consist of seven 1-mark
questions and four 2-mark questions. Questions cover the entire course and can relate to any topic in the
course manual, studied before quiz.

A3. Assignment There will be a group assignment worth 20% of the assessment weightage. Students are
expected to form groups of 2 for this assignment. In case the class strength is an odd number, one team
can consist of 3 members. The details of the assignment will be shared by the course instructor in week
12. The group will be given 15 days’ time to work and submit the assignment. The submission is
expected on week 14.

A4. End term examination- is planned as a take-home Internet-based exercise.

 (ii) Offline – on-campus mode

The course grade will be determined on the basis of

Assessment Task Weightage Nature Week of PLOs to be Assessed

Assessment
A1. Class participation 10% Individual 2-14 PLO-2, PLO-7, PLO-
11, PLO-12
A2. Project 15% Group 14 PLO-10, PLO-11,
PLO-12
A3. Mid-term examination 25% Individual 7-8 (Session 17) PLO-3, PLO-5, PLO-7
A4. End-term examination 50% Individual Exam week PLO-3, PLO-5, PLO-7

Description of Assessments:

A1. Class Participation marks will be awarded based on students’ active participation during the class h
ours. This carries 5% weightage in the assessment. For the rest 5% assessment, the students are expected
to actively participate and interact during the two guest lecture sessions during the program. Active
contribution of the students earns them points.

A2. Project The country project (15%). This is a group project, there will be 4-5 groups in the class.
Each group will be building a fictitious nation from scratch and will analyze its development and
economic policies over the course of the syllabus. Each group will have to geographically locate the
country, make a short constitution of the country, make the history of the country, choose the nature of
the government, the economic and political ecosystem and its policies.

Once you are ready, in regular intervals the instructor will create a unique situation for your country.
Given the information already have, you need to find out how that situation would affect your country’s
economy and what will be the desired policies and their repercussions based on the macroeconomic
concepts you have learned during this course. There will be a submission every two weeks and a final
submission at the end of the semester, followed by a video presentation. Students are not permitted to
copy from websites and they will be penalized if found copying/lifting from the website (There will be a
plagiarism check).

All word documents should be in standard report formats with required headings to make for easy
reading. They should be as per the above guidelines and on a A4 paper with 1-inch default margin . In
general appendices and tables do not count towards the page limit. Please use the tables and appendices in
the report; otherwise the reader would get the impression that there just there to add ‘weight’ to the report.
A3. Mid-term examination will be conducted as a sit-in exam during Session 17 of the course.

A4. End-term examination will be conducted as a sit-in exam during the exam week.

TEXTBOOK/COURSE MATERIALS

The assigned text for this course is “Principles of Macroeconomics” By N. Gregory Mankiw, 6th Edition
(Cengage Learning).

You may also take a look at the book -

Macroeconomics by N. Gregory Mankiw, 7th Edition (Worth Publishers).

Please note, these two books, although by the same author, are different in their treatment of the subject.
The book “Macroeconomics” is more detailed and a bit more technical while “Principles of
Macroeconomics” is an introductory level book. If you are borrowing the book from the
library/purchasing it, mind the title.

Narrative Economics by Robert Shiller

This book would be used for class and group discussions

EXTERNAL LINKS

Lecture Notes | Principles of Macroeconomics | Economics | MIT OpenCourseWare

Institute for New Economic Thinking (ineteconomics.org)
Economics | Khan Academy
Economics & Public Policy Research | Imperial College Business School
Young Scholars Initiative (ineteconomics.org)
Home | The Alan Turing Institute
Complexity and Economic Behaviour - Econometrics - Amsterdam School of Economics - University of
Amsterdam (uva.nl)

 Project Syndicate https://www.project-syndicate.org
 
 Current Economic News
o Livemint                               https://www.livemint.com/
o The Economist                   http://www.economist.com/
o The Wall Street Journal  http://online.wsj.com/home-page
o The Economic Times       https://economictimes.indiatimes.com/
o Business Week                  https://www.bloomberg.com/businessweek
 
 Wetheeconomy                                https://wetheeconomy.com/films/
 
 Some useful blogs:
 o Adam Smith Institute      https://www.adamsmith.org/blog/
o Greg Mankiw’s blog         http://gregmankiw.blogspot.com/
o World Bank                         https://blogs.worldbank.org/
o Real Time Economics      https://blogs.wsj.com/economics/
o The Grumpy Economist https://johnhcochrane.blogspot.com/
o Paul Krugman                      https://krugman.blogs.nytimes.com/
 
 Useful databases
o IMF.                                          https://www.imf.org/en/Data
o World Bank.                          https://data.worldbank.org/
o MoSPI, Govt of India            https://www.mospi.gov.in/web/mospi/download-tables-data
o Ministry of Finance, GOI      https://www.finmin.nic.in/data-and-statistics
o Database on Indian Economy https://dbie.rbi.org.in/DBIE/dbie.rbi?site=home

PROGRAM COMPETENCY GOALS

BBA Progroamme Learning Objectives

(PLOs)
1. BBA Programme Competency Goals
(PCGs)

Students will be able to

1. Understand local business issues

Responsible Global Citizenship: Ability to 2. Understand global business issues

understand the interplay between local and 3. Demonstrate sensitivity towards ethical
1
global issues and to act with sensitivity towards issues
ethical and social issues
4. Demonstrate sensitivity towards social
issues

5. Present their ideas with clarity

Effective communication: Ability to effectively
2 6. Write in a coherent manner
exchange ideas and information
7. Use technology for communication

8. Identify main issues of business problems

Critical Thinking: Ability to identify, analyze
9. Examine information from different
3 business problems and propose effective
sources
solutions
10. Draw inferences from analysis

11. Understand the factors to work effectively

Teamwork: Ability to work and contribute in groups
4
effectively in group -settings
12. Contribute effectively in groups
 WEEKLY SESSION PLAN
Week 1 CLOs Covered

CLO-1, CLO-2,
Objective Session 1 : Understanding Macroeconomic Data CLO-4
of the
sessions In this session, the students will be made familiar with
macroeconomic data and learn about leading, lagging and
coincident indicators.
After the successful completion of this session, students
should be able to:
 Understand the performance of an economy by
examining the indicators
 Collect macroeconomic data and visualize them using
appropriate graphs
 Interpret the macroeconomy from graphs

Session 2: Measuring a Nation’s income

The objective is to provide students with an understanding of

the measurement and the use of gross domestic product (GDP).
After the successful completion of this session, students should
be able to:
 Explain the concept of GDP, benefits and limitation in
measuring country well-being

Readings Class lectures

www.gapminder.org
https://fred.stlouisfed.org/

Principles of Macroeconomics, Mankiw, Ch. 10

Week 2
CLO-1, CLO-2,
Objective Session 3: Measuring a Nation’s income CLO-4
of the
sessions The objective is to provide students with an understanding of
the measurement and the use of gross domestic product (GDP).
After the successful completion of this session, students should
be able to:
 Define elements of GDP, measurement techniques and
its interconnection with total income and spending
  State the difference between real and nominal GDP

Session 4: Measuring the Cost of Living

In these lectures, students will learn basic concepts of price

index, inflation and cost of living.
After the successful completion of this session, students should
be able to:
 Discusses the purpose of CPI, and the ways of its
calculation
 List the problems associated with CPI
 Identify differences between CPI and GDP deflator

Readings Principles of Macroeconomics, Mankiw, Ch. 10

Principles of Macroeconomics, Mankiw, Ch. 11

Week 3
CLO-1, CLO-2,
Objective Session 5: Measuring the Cost of Living CLO-4
of the
sessions In these lectures, students will learn basic concepts of price
index, inflation and cost of living.
After the successful completion of this session, students should
be able to:
 Execute comparison of values from different years
using CPI
 Formulate the idea of inflation correction, nominal
and real values

Session 6: Production and Growth

In these lectures, students will learn basic concepts of growth,
productivity and its determinants and role of public policy in
productivity and growth.
After the successful completion of this session, students should
be able to:
 Align living standards and growth rates using
examples of different countries
 Interpret productivity determinants and its growth
rates
 Relate various public policies to growth of living
standards

Readings Principles of Macroeconomics, Mankiw, Ch. 11

 Principles of Macroeconomics, Mankiw, Ch. 12

Week 4
CLO-1, CLO-2,
Objective Session 7: Production and Growth CLO-4
of the In these lectures, students will learn basic concepts of growth,
sessions productivity and its determinants and role of public policy in
productivity and growth.
After the successful completion of this session, students should
be able to:
 Align living standards and growth rates using
examples of different countries
 Interpret productivity determinants and its growth
rates
 Relate various public policies to growth of living
standards

Session 8: Guest Lecture 1

 Sec A: Dr Leonardo Orlando : EU (a noted policy and

international relations researcher)
 Sec B: Oksana Oliynyk, PhD, Program Coordinator at
the International Institute for Integral Development
(Public Association)
 Sec C: Swati Singla, IES Officer, Ministry of
Agriculture
 Sec D: Sukanya S, TCS
 Sec E: Vinayagavel, Spark Minda
Readings Principles of Macroeconomics, Mankiw, Ch. 12
Week 5
CLO-1, CLO-2,
Objective Session 9 and Session 10: Saving, Investment and the CLO-4
of the Financial System
sessions
In these sessions, students will learn the workings of the
market for saving and investment in capital.
After the successful completion of this session, students should
be able to:
 Identify the three kinds of saving
 Differentiate between saving and investment
 Explain how the financial system coordinate saving
and investment
 Interpret how govt policies affect saving, investment,
and the interest rate
Readings Principles of Macroeconomics, Mankiw, Ch. 13
Week 6
CLO-1, CLO-2,
Objective Session 11 and Session 12: Unemployment CLO-4
of the
sessions These sessions will introduce the students to the concept of
unemployment. Students will learn how unemployment is
measured and the reasons.
After the successful completion of this session, students should
be able to:
 Classify the reasons of unemployment and explain the
idea of natural rate of unemployment
 Measure the level of unemployment
 Argue on how unemployment is affected by unions and
minimum wages law
 Relate theory of efficiency wages to unemployment

Readings Principles of Macroeconomics, Mankiw, Ch. 15

Week 7
CLO-1, CLO-2,
Objective Session 13 and Session 14: The Monetary System CLO-4
of the
sessions At the end of these sessions, the students are expected to
develop an understanding of what money is, what forms
money takes, how the banking system helps create money, and
how the central bank controls the quantity of money.
After the successful completion of this session, students should
be able to:
Explain the concept of moneyUnderstand the role of reserve
bank in the monetary system
Readings Principles of Macroeconomics, Mankiw, Ch. 16
Week 8
CLO-1, CLO-2,
Objective Session 15 and Session 16: Money Growth and Inflation CLO-4
of the
sessions These sessions will introduce the students to the money market
and will discuss in depth about inflation and how it is related
to money supply growth.
After the successful completion of this session, students should
be able to:
 Explain the concept of inflation
 Classify between inflation, deplation, disinflation and
hyperinflation
 Interpret the macroeconomic principles behind
 inflation

Readings Principles of Macroeconomics, Mankiw, Ch. 17

Week 9
CLO-2, CLO-3,
Objective Session 17: REVISION CLO-4
of the
sessions (Session 1 to Session 16)

*We conduct the quiz at the end of Session 17 in online

Mode
And Mid-Term Exam in an offline Mode

Session 18 : Guest Lecture 2

 Sec A: (Mr Stew Muscat : Entrepreneur, Project

developer UK)
Sec B: Stanislav Dubikovsky, Director of the Institute
of Social and Economic Development,
www.isedworld.org
 Sec C: Priyamvada Gupta, Senior Manager, United
Health Group
 Sec D: Vinai Kataria, ICICI
 Sec E: Ranjith R, IOCL

Week 10
CLO-1, CLO-2,
Objective Session 19 and Session 20: Aggregate Demand and CLO-4
of the Aggregate Supply
sessions
These sessions will introduce the students to the concept of
aggregate demand and aggregate supply and how the
interaction between these two explains economic fluctuations.
After the successful completion of this session, students should
be able to:
 Explain economic fluctuations and distinguish their
characteristics
 Relate the model of aggregate demand and aggregate
supply to economic fluctuations
 Assess impacts on the macroeconomy using the model
of aggregate demand and aggregate supply

Readings Principles of Macroeconomics, Mankiw, Ch. 20

Week 11
CLO-1, CLO-2,
Session 21 and Session 22: The Influence of Monetary and CLO-4
Objective Fiscal Policy on Aggregate Demand
of the
sessions These lectures will address the short-run effects of monetary
and fiscal policies.
After the successful completion of this session, students should
be able to:
 Explain how the central bank use monetary policy to
shift the AD curve
 Analyze the two ways fiscal policy affect aggregate
demand
 Critically evaluate the arguments for and against using
policy to try to stabilize the economy

Readings Principles of Macroeconomics, Mankiw, Ch. 21

Week 12
CLO-1, CLO-2,
Objective Session 23 and Session 24: The IS-LM Model CLO-4
of the
sessions These lectures will introduce the students to the interaction
between the goods market and the money market using the IS-
LM Framework.
After the successful completion of this session, students should
be able to:
 Distinguish the linkage between goods and money
market
 Interpret the feedback loop between these two markets
 Illustrate the policy impacts on the economy using IS-
LM model

*At the end of Week 12, we can give the assignment in the
online mode (with 15 days of deadline)
Readings Macroeconomics, Mankiw, Ch. 10-11
Week 13
CLO-1, CLO-2,
Objective Session 25 : The Short Run Trade-off Between Inflation CLO-3, CLO-4
of the and Unemployment
sessions
These lectures will introduce the students to the relationship
between inflation and unemployment and how the nature of
the relationship changes from short run to long run.
After the successful completion of this session, students should
be able to:
 Recognize the relationship between inflation and
unemployment in the short run
  Evaluate the policy problems
 Explain the concept of short run and long run Phillips
curve

Session 26 : Open Economy Macroeconomics

These lectures will cover the concepts of open and closed

economies, give insights into international trade flows and its
correlation with GDP growth. Capital flows will be analyzed
in connection with savings and investment. Students will be
able to distinguish between various measurements of exchange
rates and interpret ER fluctuations.
After the successful completion of this session, students should
be able to:
• Relate international flows of goods and assets
• Establish difference between the real and nominal
exchange rate
Define “purchasing-power parity,” and how does it explain
nominal exchange rates

Readings Principles of Macroeconomics, Mankiw, Ch. 22

Principles of Macroeconomics, Mankiw, Ch. 18

Week 14
CLO-1, CLO-3
Objective Session 27 and Session 28 : International Trade
of the
sessions Students will get an overview of classical (country-based) and
alternative (firm-based) theories of international trade, nature
of people’s and nations’ economic interdependence and ways
how can trade make everyone better off.
After the successful completion of this session, students should
be able to:
 Define salient features of classical and alternative
theories of international trade
 List the concepts of absolute and comparative
advantages in foreign trade and gains from trade
 Contrast policies of free trade and protectionism
 Identify recent trends in the world trade

Readings Principles of Macroeconomics, Mankiw, Ch. 3

Week 15
CLO-2, CLO-4
Objective Session 29 and Session 30 : REVISION
of the
sessions
Readings

13. KEY CONCEPTS

S.no Name of the Topic Concepts

.
1. Understanding Macroeconomic Leading, Lagging and Coincident indicators.
Data
2. Measuring a nation’s income Gross domestic product (GDP), Nominal GDP, Real
GDP, GDP deflator
3. Measuring the cost of living Consumer price index (CPI), Inflation rate , Core CPI,
Nominal interest rate, Real interest rate
4. Saving, Investment, and the Bond, stock, National saving, Budget deficit, Crowding
Financial System out
5. Unemployment Unemployment rate, Labour-force participation rate,
Natural rate of unemployment, Frictional
unemployment
6. The Monetary System Unit of account, Money supply, Money-multiplier,
Reserve ratio
7. Money, Growth and Inflation Quantity theory of money, Money neutrality, Velocity
of money, Fisher effect
8. Aggregate demand and Recession, Depression, Stagflation, Natural rate of
Aggregate supply output
9. The IS-LM Model IS curve, LM curve, Tax-multiplier, Monetary
transmission mechanism, Pigou effect
10. The Influence of Monetary and Theory of liquidity preference, Crowding-out effect,
Fiscal Policy on Aggregate Automatic stabilizers
Demand
11. The Short Run Trade-off Phillips curve, Sacrifice ratio, Supply shock
Between Inflation and
Unemployment
12. Production and Growth Productivity, Diminishing returns, Catch-up effect,
Solow Growth model
13. Open Economy Depreciation, Appreciation, Trade deficit, Nominal
Macroeconomics exchange rate, Real exchange rate
14. International Trade Absolute advantage, Comparative advantage,
Opportunity cost, Tariff, Quota, Subsidy