DEPARTMENT OF MANAGEMENT SCIENCES

MACROECONOMICS
Instructor: Nain Tara Program: BBA-3rd
COURSE DESCRIPTION

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 macro-economic
problems and major policy debate. The basic themes are extended to find out how the disciplines
of national income, macro economics 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.

INDENTED LEARNING OUTCOME

At the end of this course, students will be able to:
1. To become familiar with and readily use economic terminology.
2. To learn about the analytical approach economists take to the problem of scarcity.
3. To gain an intuitive understanding of macroeconomic theory and application.
4. To acquire better critical thinking skills through the analysis of present day economic issues.
5. To provide a foundation for possible careers in business, govt., academic or other sectors.
6. To develop a conscious recognition of economics in the world around us.
TEACHING METHODOLOGY
1. The class will be conducted on a lecture, discussion, presentation Assignments basis, where the
students will be encouraged to participate in all class activities.
2. Next class discussion topic will be already announced. So students will be supposed to have prior
study about topic. Surprise quizzes & presentation will be conducted to evaluate student's
performance.
CLASS DISCIPLINE
1. Students will be required to secure 80% attendance mandatory, to sit in exams.
2. Late arrivals will be marked as absent.
3. Early departure from class will earn as absence to the student, unless leave is sought from the class
teacher.
COURSE CONTENT

Week 01 KEY CONCEPTS OF MACROECONOMICS

Objectives and instruments of macroeconomics.
Tools of macroeconomics policy.
Aggregate demand and supply
Week 02,03 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 04 INFLATION
Nature and kinds.
Consumer Price Index
Inflation Indexed Rates
Week 05 PRODUCTION AND GROWTH, BUSINESS CYCLE
Factors of Production
Public Policies
Population Growth
Week 06, 07 CONSUMPTION, SAVING AND INVESTMENT.
Consumption, Income and saving.
Saving Function.
Determinants of Investment (Rate of interest)
Policy impact on saving and investments and interest rate
Week 08,09 FINANCIAL SYETEM, BASIC TOOLS OF FINANCE
Financial institutions
Present Value of Money
Risk and Return
Efficient Market Hypothesis
Week 10,11 UNEMPLOYMENT
Measurement
Min-wage laws
Labor Unions
Week 12,13 MONETARY SYSTEM
Federal reserve system
Money Supply, Money Multiplier
Week 14 FISCAL AND MONETARY POLICIES
Fiscal Policy
Monetary Policy
Week 15 BALANCE OF PAYMENTS
Balance of Payments Accounts.
Disequilibrium & Imbalance of Payments.
Causes and Remedies.
Week 16 Project Review
RECOMMENDED BOOKS
1. Gregory Mankiw, Principles of Economics, Cengage learning (6th edition or latest)
2. Gregory Mankiw, Principles of Macro-Economics, Cengage learning (6th edition)
3. Samuelson and Nordhaus, Economics, McGraw Hill, New York (Latest Edition)
4. Michael Parkin, Business Economics, McGraw Hill (Latest Edition)
TESTING AND GRADING
Students' evaluation will be based on Quizzes, Class participation, Class assignments, presentations class
attendance, Mid-term and Final exam.
Marks Distribution Sessional will be on the following basis
Mid Term 30 Attendance 05 Marks
Final Term 50 Quizzes 05 Marks
Sessional 20 Presentations 05 Marks
Assignments 05 Marks