ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD

(Department of Business Administration)

*****

MACRO ECONOMICS (8412)

CHECKLIST

SEMESTER: Spring, 2019

This packet comprises the following material:

1. Text Book
2. Course Outline
3. Assignment No.1 and 2
4. Assignment Forms (two sets)

If you find anything missing, in this packet, out of the above mentioned material, please
contact at the address given below:

Deputy Registrar
Mailing Section, Block No. 28
Allama Iqbal Open University
H-8, Islamabad
Ph: 051-9057611-12

Course Coordinator:
Mr. Muhammad Ehsan Javaid
Lecturer, Department of Business Administration,
AIOU, Islamabad

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 ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD
(Department of Business Administration)

WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING THE
ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD OF
DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENTS BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.

GUIDELINES FOR ASSIGNMENT # 1:

You should look upon the assignments as a test of knowledge, management skills, and
communication skills. When you write an assignment answer, you are indicating your
knowledge to the teacher:
 Your level of understanding of the subject;
 How clearly you think?
 How well you can reflect on your knowledge & experience?
 How well you can use your knowledge in solving problems, explaining situations, and
describing organizations and management?
 How professional you are, and how much care and attention you give to what you do?

To answer a question effectively, address the question directly, bring important related
issues into the discussion, refer to sources, and indicate how principles from the course
materials apply. You must also be able to identify important problems and implications
arising from the answer.

For citing references, writing bibliographies, and formatting the assignment, APA format
should be followed.

Course: Macro Economics (8412) Semester: Spring 2019

Level: BBA 4 Years Passing Marks: 50

ASSIGNMENT No: 1

Q.1 Define Gross Domestic Product. Explain with the help of diagram the circular flow of national
income.
(20)
Q.2 What is fiscal policy? Explain expansionary and contractionary fiscal policy.
(20)
Q.3 What is monetary policy? How does it differ from an investment demand curve?.
(20)
Q.4 What is aggregate supply? Explain the factors responsible for changes in aggregate supply?
(20)

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Q.5 Define the term ‘Money’. Enlist and explain the process of money creation in detail.

ASSIGNMENT No. 2

Total Marks: 100

Pass Marks: 50

This assignment is a research-oriented activity. You are required to obtain information from
a business/commercial organization and prepare a report of about 1000 words on the issue
allotted to you to be submitted to your teacher for evaluation.

You are required to select one of the following issues according to the last digit of your roll
number. For example, if your roll number is P-3427180 then you will select issue # 0 (the
last digit): -

Issues:
1. National Income
2. Economic Growth & Instability
3. Business & Economic Cycle
4. Interest and Inflation (Explain macroeconomic relationship)
5. Aggregate Demand
6. Aggregate Supply
7. Monetary Policy
8. Fiscal Policy
9. Arbitrage Process in Financial Economics
10. Balance of Payment

The report should follow the following format:

1. Title page
2. Acknowledgements
3. An abstract (one page summary of the paper)
4. Table of contents
5. Introduction to the issue (brief history & significance of issue assigned)
6. Practical study of the organization (with respect to the issue)
7. Data collection methods
8. SWOT analysis (strengths, weaknesses, opportunities & threats) relevant to the issue
assigned
9. Conclusion (one page brief covering important aspects of your report)
10. Recommendations (specific recommendations relevant to issue assigned)
11. References (as per APA format)
12. Annexes (if any)

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GUIDELINES FOR ASSIGNMENT # 2:
 1.5 line spacing
 Use headers and subheads throughout all sections
 Organization of ideas
 Writing skills (spelling, grammar, punctuation)
 Professionalism (readability and general appearance)
 Do more than repeat the text
 Express a point of view and defend it.

WORKSHOP:
The workshop presentations provide you opportunity to express your communication skills,
knowledge & understanding of concepts learned during practical study assigned in
assignment # 2.

You should use transparencies and any other material for effective presentation. The
transparencies are not the presentation, but only a tool; the presentation is the combination
of the transparencies and your speech. Workshop presentation transparencies should only be
in typed format.

The transparencies should follow the following format:

1) Title page
2) An abstract (one page summary of the paper)
3) Introduction to the issue (brief history & significance of issue assigned)
4) Practical study of the organization (with respect to the issue)
5) Data collection methods
6) SWOT analysis (strengths, weaknesses, opportunities & threats) relevant to the issue
assigned
7) Conclusion (one page brief covering important aspects of your report)
8) Recommendations (specific recommendations relevant to issue assigned)

GUIDELINES FOR WORKSHOP PRESENTATION:

1. There will be twelve hours workshop for each course as per details given in
the workshop schedule.
2. Please note that, the students not signing up on the first day would not be
allowed to participate in the workshop.
3. The workshop coordinator would verifty the students’ identity by means of
Original Computerized National Identity Cards (CNIC)..
4. Attendance of a student in all sessions of the workshop is mandatory, and
they will not be permitted to skip any session of the workshops in which they
are not supposed to present. The resource persons will have the powers to
award zero marks to such students who simply attend the session in which

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 they have to persent their own research paper/topic and leave the workshop
after their presentation.
5. Students during their presentation in the workshop may consult their
notes/points but they will not be allowed complete paper reading during their
presentation.

6. If a student is fail or absent in the workshop due to any reason, he/she is

given two extra chances to reappear in the forthcoming workshops, on
depositing the prescribed workshops fee in university’s account and showing
the respective bank receipt to the workshop coordinator.

WEIGHTAGE OF THEORY & PRACTICAL ASPECTS IN ASSIGNMENT # 2 &

WORKSHOP PRESENTATIONS:
Assignment # 2 & workshop presentations are evaluated on the basis of theory & its
applicability. The weightage of each aspect would be:

Theory: 60%
Applicability (practical study of the organization): 40%

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 ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Business Administration)
Course: Macro Economics Course Code: 8412
Level: BBA (4 years) Credit hours: 03

Unit 1: The Measurement of Domestic Output & National Income

 Gross Domestic Product
 Expenditure Approach
 Income Approach
 Other National Income Accounts
 Nominal v/s Real GDP
 Short Coming of GDP

Unit 2: Introduction to Economic Growth and Instability

 Economic Growth
 Business Cycle
 Unemployment
 Inflation
 Redistribution Effect of Inflation

Unit 3: Basic Macroeconomic Relationships

 Interest Rate & Income & Consumption Relationship
 Income & Saving Relationship
 Investment Relationship
 Multiplier Effect

Unit 4: Aggregate Demand & Aggregate Supply

 Aggregate Demand
 Changes in Aggregate Demand
 Aggregate Supply
 Changes in Aggregate Supply
 Equilibrium and Changes

Unit 4: Fiscal Policy

 Fiscal Policy
 AD-AS Model
 Built In Stability
 Evaluating Fiscal Policy
 Problem Criticism & Complications
 Public Debt

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Unit 5: Money
 Money: definition and functions of money
 Functions of central bank and commercial banks
 Money demand, money supply and the determination of interest rate

Unit 6: Money Creation

 Fractional Reserve System
 Single Commercial Bank
 Money Creating Transactions of Commercial Banks
 The Banking System: Multiple Deposit Expansion

Unit 7: Interest Rate and Monetary Policy

 Interest Rate
 Tools of Monetary Policy
 Explanatory Monetary Policy
 Restrictive Monetary Policy
 Monetary Policy Real GDP & Price Level

Unit 8: Financial Economics

 Financial Economics
 Present Value
 Some Popular Investments
 Arbitrage
 Risk
 Security Market Line

Unit 9: Balance of Payments & International Trade

 International Trade
 Role of Banks in International Trade
 Balance of Payments
 Equilibrium in the balance of payments
 Causes and consequences of balance of payments disequilibrium
 Methods of controlling balance of payments disequilibrium

Books
Macroeconomics : Principles, Problems & Policies By Campbell R. McConnell &
Stanley L. Brue
Macroeconomics by Paul Samulson