Fatima Jinnah Women University, Rawalpindi

Macro Economics
Course Outline
Department: BS-Commerce
Course Title: Macro economics

Course code:
Credit Hours: 3
Pre-requisite: None
Semester: BS- Commerce

Brief Course Description and Objectives:

This course builds upon key concepts and theories of macroeconomics. The basic theme of the
course is to explore the operational functions of macro components of an economy within a
society. The course aims that students develop an integrated understanding of how economic
decisions are made at national level.
Learning Outcomes:
1. Understand that economics is about the allocation of scarce resources, that scarcity forces
choice, tradeoffs exist and that every choice has an opportunity cost. Be able to
demonstrate these concepts using a production possibility frontier diagram.
2. Understand how comparative advantage provides the basis for gains through trade.
3. List the determinants of the demand and supply for a good in a competitive market and
explain how that demand and supply together determine equilibrium price.
4. Understand the causes and effects of inflation and unemployment.
5. Describe the macro economy using aggregate demand and aggregate supply analysis.
6. Demonstrate an understanding of monetary and fiscal policy options as they relate to
economic stabilization in the short run and in the long run.
Course Outline

Weeks Topics/Contents Courseware

Events
Week-01 Key Concepts of Macroeconomics: Objectives and
instruments of macroeconomics; Tools of
macroeconomics policy; Aggregate demand and supply.

Week-02 Measuring Economic Activity: Concepts of National

Income; Measurement of National Income. GDP, NDP,
GNP & NNP, Personal Income & Disposable Personal
Income; GDP Deflator and a real GDP; National
Income as a measure of economic welfare.

Week-03 Consumption and Investment: Consumption, Income

and saving; Consumption Function; Saving Function.

Week-04 The Marginal Propensity to Consume and Average Assignment 1

Propensity to consume; The Marginal Propensity to
Save and Average Propensity to save; Determinants of
Consumption; Determinants of Investment (Rate of
interest, MEC).
Week-05 Income and Employment Determination: Classical Quiz
approach; Modern approach (Keynesian); Post
Keynesian Approach.
Week-06 Fiscal and Monetary Policies: Fiscal Policy. Case study

Week-07 Monetary Policy.

Week-08 Mid Term

MID TERM

Week-9
Inflation: Nature and kinds; Inflationary and
deflationary gaps; Inflation and unemployment.
Week-10 Multiplier And Accelerator: Investment Multiplier;
Tax multiplier, foreign trade multiplier and super
multiplier.
Week-11 Business Cycle: The concept of Business Cycle;
Business Cycle Theories.
Week-12 Business Cycle & Business Decision Making. Assignment 2
 Week-13 International Trade: Classical theory of International Quiz
trade (CIT); Modern theory of International trade (H-O-
Theorem).
Week-14 Economic Integration and Regional Cooperation:
Protection and free trade; WTO (Objectives and role).

Week-15 Balance of Payments: Balance of Payments Accounts;

Disequilibrium & Imbalance of Payments; Causes and
Remedies.

Week-16 Project/Revision Case study

Week-17 Presentations and Revision Presentation/

Viva

Week-18 FINAL TERM FINAL TERM

Marks distribution

Quiz 10
Assignment 10
Project 8
Presentation 7
Class participation 5
Midterm 25
Final Term 35

total 100

Recommended Books

 Samuelson and Nordhaus, Economics 16th Edition, McGraw Hill, New York.
 Dornbusch and Fischer Macroeconomics 3rd Edition, McGraw Hill, New York.
 Ruffin & Gregory, Principles of Economics, Scott, Foresman& Company.