Principles of Macroeconomics- Summer 2011 Detailed Course Outline

Course Instructor: Dr. Danish Ahmed Siddiqui Email: daanish79@hotmail.com, dsiddiqui@iba.edu.pk Course Objectives: y y y y y y To become familiar with the fundamental concepts and terminology associated with macroeconomic theory and applications. To learn how to apply the various tools of economic analysis and to understand how economists measure and evaluate economic performance at the national and global levels. To examine the relationships among key economic variables such as the money supply, interest rates and exchange rates. To identify the different schools of macroeconomic thought and to examine areas of agreement and disagreement relating to basic macroeconomic relationships. To understand the importance of the national and global economic policies and their impact on economic growth, employment, inflation, and international commerce. To appreciate the interrelations between accounting, finance, macroeconomics and the operation of market economies.

Required Materials: y y (Text)Campbell R. McConnell, Stanley L. Brue, and Sean M. Flynn: Economics, 18th edition, Irwin-McGraw-Hill, New York, 2009. Other books on macroeconomics by authors like Case and Fair, Parkin, Simulson and Nordic can also be used as a reference text.

Evaluation of Student Performance: Course requirements will be weighted as follows in the determination of final grades: Term Exams 40% Final Exam 50% Quizzes 15% Assignments 5% Total 100%

y y y y y

Quizzes: You must take four (4) quizzes. Your quiz grade will be based upon the average of the 4 grades. If you do not take 4, then the grade for the one missed will be equal to 80% of the lowest marks obtained in a class. There will be no makeup quizzes. Policy on Missed Exams: Any missed exam will receive a grade of zero or as per IBA policy Attendance and Norms of Civility Regular class attendance is strongly recommended. In order to maintain a classroom environment which is pleasant and conducive to learning, certain modes of conduct will be expected to be followed by all students in this class.

5.circular flow model Topic: The Market System and the Circular Flow Assigned Material: Text.y y y y y y Tardiness is considerably distracting to your classmates. you should understand: . Unemployment and Inflation .the expenditure approach to GDP accounting . Coming and going in and out of class when the lecture is in progress.economic systems .the income approach to GDP accounting .types of unemployment and inflationTopic: Business cycles.the methodology of economics scarcity and choice . This is impolite and distracting to people around you.Marginal analysis . Chapter 25 Session 7 and 8 Learning Objectives: By the end of this week.the shortcomings of GDP . No use of profanity b. growth accounting . Refrain from prematurely closing books and notebooks before class ends.Production possibilities curve Topics: Limits. Chapter 2 Session 4. five fundamental questions .Price indices Topic: Measuring Domestic Output and National Income Assigned Materials: Text.business cycles . you should understand: . Session 1 and 2 Learning Objectives: By the end of this week. Chapter 24 Session 6 and 7 Learning Objectives: By the end of this week you should be able to understand Economic Growth. and 6 Learning Objectives: By the end of this week. you should understand: . therefore all effort should be made to arrive on time. Alternatives. Do not leave trash behind in the classroom when you leave nor write on furniture. It is inconsiderate and distracting. It is expected that your conduct in class show respect to others in several ways: a. and Choices Assigned Materials: Text. Chapter 1 Session 3 and 4 Learning Objective: By the end of this week you should understand the market economy. Eating a meal at your desk is not acceptable conduct.production possibilities analysis . Interrupting others is not acceptable conduct c. is discouraged.is growth good or undesirable Topic: Economic Growth Assigned Materials: Text. Respect of others can be shown by listening to their comments and answers as you would expect them to pay attention to your remarks.uneven distribution of growth .Measuring inflation and unemployment .

you should understand: the evolution of private banking .the financing of budgetary deficits and the disposing of surpluses . Chapter 30 Session 15 Learning Objectives: By the end of this session.the functions of money . you should understand: non-discretionary fiscal policy (automatic stabilizers) . Chapter 29 Session 13 and 14 Learning Objectives: By the end of this week.the strengths and weaknesses of fiscal policy Topic: Fiscal Policy.bank regulations Topic: Money Creation Assigned Materials: Text.recessionary and inflationary gaps Topic: The Aggregate Expenditures Model Assigned Materials: Text.the business investment function .the money multiplier .equilibrium: real output and the price level-. unemployment Topic: Aggregate Demand and Aggregate Supply and its applications Assigned Materials: Text. Chapter 28 Session 12 and 13 Learning Objective: By the end of this week.the balance sheets of commercial banks . you should understand: .the implications of adding the public sector .Keynesian equilibrium in the private sector .Assigned Materials: Text.the money supply/money measures Topic: Money and Banking Assigned Materials: Text. and Debt Assigned Materials: Text. Chapter 26 Session 8 and 9 The consumption function .the implications of adding net foreign demand .how banks create money .the relationship between inflation vs. Chapter 32 .the determinants of aggregate supply . Chapter 31 Session 16 and 17 Learning Objectives: By the end of this session. you should understand: .changes in equilibrium and the spending multiplier . you should understand the determinants of aggregate demand . Deficits.expenditure multiplier Topic: Basic Macroeconomic Relationships Assigned Materials: Text.discretionary fiscal policy .the categories of money . Chapter 27 Session 10 and 11 Learning Objectives: By the end of this week.supply shocks .

expansionary and restrictive monetary policy .the demand for money and interest rates Topic: Interest Rates and Monetary Policy Assigned Materials: Text.Session 17 and 18 Learning Objectives: By the end of this session.the tools of monetary policy . Chapter 33 . you should understand: .

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