Course: Macroeconomics (ECO202)

Semester: Fall 2019

Course ID:
Faculty: M.Amin Hasan
COURSE OUTLINE

Prerequisite:
Micro Economics

Course Objectives:
This course aims at giving students knowledge about the working of a mixed economy at the
aggregate level under pinning of aggregate output and income determination, key
macroeconomics problems and major policy debate. The basic themes are extended to find out
how the disciplines of national income, macroeconomics in closed and open economy,
macroeconomic stabilization policies, macro-economic components (consumption, saving,
private investment, interest etc.), public finance, money and banking link up with conventional
macroeconomics

Learning Out Comes:

 At the end of this course, students will be able to:
 To become familiar with and readily use economic terminology.
 To learn about the analytical approach economists take to the problem of scarcity.
 To gain an intuitive understanding of macroeconomic theory and application.
 To acquire better critical thinking skills through the analysis of present day economic issues.
 To provide a foundation for possible careers in business, government, academic or other
sectors.
 To develop a conscious recognition of economics in the world around us.

Course Outline:
Weeks TOPIC Assign/Quiz Signature Remarks

Week 1 INTRODUCTION TO MACROECONOMICS

 What Macroeconomics is about
 What macroeconomists do
 Why Macroeconomists disagree
Week 2-3 THE MEASUREMENT & STRUCTURE OF THE
NATIONAL ECONOMY.
 National Income Accounting: The Measurement
of Production, Income, and Expenditure
 Gross Domestic Product
 Saving & Wealth
 Real GDP, Price Indexes, & Inflation
 Interest Rates
Week 4-5 PRODUCTIVITY, OUTPUT & EMPLOYMENT
 How Much Does the Economy Produce? The
production Function
 The Demand for Labor
 The Supply of Labor
 Labor Market Equilibrium
 Unemployment
 Relating Output & Unemployment: Okun’s Law
Week 6-7 CONSUMPTION, SAVING & INVESTMENT
  Consumption & Saving
 Investment
 Goods Market Equilibrium
Week 8 MID TERM EXAM

Week 9-10 THE ASSET MARKET, MONEY & PRICES

 What is Money
 Portfolio Allocation & Demand for Assets
 The Demand for Money
 Asset Market Equilibrium
 Money Growth & Inflation
Week 11 BUSINESS CYCLE
 What is Business Cycle?
 Business Cycle Facts
 In Touch with Macro economy
 Business Cycle Analysis
Week 12-13 THE IS-LM/ AD-AS MODEL
 The FE Line: Equilibrium in the Labor Market
 The IS Curve: Equilibrium in the Goods Market
 The LM Curve: Asset Market Equilibrium
 General Equilibrium in the Complete IS-LM
Model
 Price Adjustment & the Attainment of General
Equilibrium
 Aggregate Demand & Aggregate Supply
Week 14 MONETARY POLICY & THE FEDERAL RESERVE
SYSTEM
 Principles of Money Supply Determination
 The Conduct of Monetary Policy: Rules versus
Discretion
Week15 GOVERNMENT SPENDING & Its FINANCING
 The Government Budget: Some Facts & Figures
 Government Spending, Taxes, & the Macro
Economy
 Government Deficit & Debt
 Deficits & Inflation

RECOMMENDED TEXT BOOKS

1. Andrew B. Abel, Ben S. Bernanke, Macroeconomics 8 th Edition, Pearson.
2. N Gregory Mankiw, Macroeconomics, Prentice Hall
3. Dornbusch and Fischer, Macroeconomics, McGraw Hill, New York. (Latest Edition)

Course Assessment:
Quizzes: Minimum 4 quizzes 08 points
Mid-Term Exams 25 points
Project & Presentation 15 points
Assignments: Minimum 2 assignments 08 points
Class Participation 04 points
Final Exams 40 points
* The teacher must provide a written project outline within 7 days of the first class. The submission of the
project cannot be later than the 10 th week of the semester.