MODULE HANDBOOK

[Macroeconomics Intermediate]
(ECO121)

[BEC-2, Spring; 2021]

Instructor: Saira Habib

Department of Economics
COMSATS University Islamabad
Park Road, Tarlai Kalan, Islamabad, PAKISTAN
Course Description
This is an intermediate course in Macroeconomics, seeking to build on the concepts first
introduced in the core course ‘Principles of Macroeconomics’ in addition to introducing some
advanced concepts in Macroeconomics. While the modules may seem familiar to students,
their application will be more analytical and in-depth. The course will begin with a discussion
of different schools of economics thoughts (Classical vs Keynesian), Inter-temporal decision
making (covering consumption and Investment) and explain the need for micro-foundations
in Macroeconomics. The course will then move on to a discussion of Unemployment and
Inflation relationship. The course will conclude with a discussion of Consumption theories
and open economy macroeconomics.

This is a 3(3,0) credit hour course, comprising 3 hours of teaching per week.

Course Prerequisite
Principles of Macroeconomics
Course Objectives
The course objectives are the following:
 Introduction to inter-temporal decision making
 An understanding of how labor markets function and how unemployment can be
formally modeled (Classical vs Keynesian)
 A basic understanding of international macroeconomic interdependence and currency

The course is intended for undergraduate students.

Details of Instructor
Saira Habib
Lecturer
Department of Economics, CUI
saira.habib@comsats.edu.pk

Teaching Philosophy
My teaching philosophy for this course is to blend the theory and practice in a comfortable,
supportive classroom environment that promotes active learning through discussions and
assignments. A good theory is invaluable because it structures problems and suggests
possible solutions. It will be my job to provide you theory with application-oriented
assignments. I assure you that with your active participation in class and assignments, you
would be able to develop your management skill sets along enjoying the subject.

Academic Dishonesty
Academic dishonesty is an offence that will not be tolerated in any form. Any student who is
involved in any such activity will fully be penalized possible allowed by university
regulations. If you have any doubts about whether an action constitutes academic dishonesty,
before consult with your instructor before taking the action.
Plagiarism and Cheating: the presentation by a student as his or her own work but is
stolen from someone else. Whenever a student submits a piece of writing claiming it to be his
own authorship, it is generally understood that all the ideas, opinions, facts, figures,
conclusions, revisions, words are the student’s original work, unless he/she has explicitly

Module Handbook of Macroeconomics for the students of BEC-2 Fall 2020 Semester at Department of
Economics, COMSATS University Islamabad, Pakistan
2
Course Instructor: Saira Habib
indicated otherwise using citations, footnotes, attribution in the text, and/or used quotation
marks.
The use of unauthorized material during an examination in order to secure or give help will
not be tolerated. Academic dishonesty also encompasses unauthorized copying and
distribution of examinations, assignments, reports, projects or term papers or the presentation
of unacknowledged material as if it were the student’s own work.
A person failing to acknowledge and recognize the contribution of the original author, will be
held responsible under academic deception. Such action will necessitate measures to
discipline the student under the University’s academic dishonesty policy. Any academic
dishonesty would call for swift punitive action by the faculty and the names of the students
involved would be reported to the concerned Head of Department.

Course Assessment
 Grades: Letter grades will be assigned based on the university's standard grading scale.
 In fairness to students who complete assignments on time, late assignments will not be
accepted. You must turn in assignments during the lecture on the day they are due.
Attendance: Regular classroom attendance is mandatory. Absence from lectures will
negatively affect your grade as per University rules. Attendance is entered the COMSIS
system daily. Modifications at later stage are discouraged and are not allowed.
 Writing Assignments: In writing assignments, guidelines provided by the instructor are to be
followed.
 Arriving on time: Late arrivals are disruptive to both instructor and class discussion and show
disrespect to those who are on time.
 Minimizing disruptions: All cell phones should be turned off during class. You should not
leave and re-enter the class. You should avoid engaging in side conversations after class has
begun.
 Being prepared for class: You should be ready to discuss any assigned readings and to answer
any assigned questions for each day's class, including being ready to open a case assigned for
that day.
 Respect: You should act respectfully toward all class participants.
Below mentioned is the assessment scheme for this course.

Type of Assessment Weightage

Sessionals 25%
Assignments 10%
Quizzes and Class Participation 15%
Final Examination 50%

Course Literature
Macroeconomics: Theories and Policies
Macroeconomics
Macroeconomic theory and policy
Reference Material
Core texts
th
1. Froyen, R.T. 2005. Macroeconomics: Theories and Policies. 10 Edition. Pearson.
th
2. Dornbusch, R., Fischer, F. and Startz, R. 2010. Macroeconomics. 11 Edition.
McGraw-Hill.
3. Blanchard, O. 2017. Macroeconomics.7th Edition. Pearson.
rd
4. Branson, W.H. 1989. Macroeconomic theory and policy. 3 Edition. Harper and Row.
 5. Morgan, B. 1982. Monetarists and Keynesians: Their Contribution to Monetary
Theory. The McMillan Press Ltd., London.
th
6. Mankiw, G.N. 2016. Macroeconomics. 9 Edition. Worth Publishers.

Supplementary Texts
th
1. Abel, A.B. and Bernanke, B.S. 2017. Macroeconomics. 9 Edition, Pearson.
st
2. Barro, R. 2010. Intermediate Macroeconomics. 1 Edition. Cengage Learning.
th
3. Williamson, S.D. 2017. Macroeconomics. 6 Edition.
 Detail of Course Contents
Objective Strategies for
Week Lecture Topic(s) (Goal / Outcome Thinking Level Tasks for Students Tasks for
# # of Topic ) Students *
Learn key
Detailed study of
Introduction to concepts related
1 Dornbuch et. al.,
Macroeconomics to
2010- Chap 1
Macroeconomics
1 Learn key
concepts related Detailed study of
Macroeconomic
2 to three Dornbuch et. al.,
Models
macroeconomic To define the key 2010 - Chap 1
models concepts related to
Knowledge,
Learn key Macroeconomics
Application
concepts related and national income Detailed study of
National Income
1 to national accounting Dornbuch et. al.,
Accounting
income 2010- Chap 2
accounting
2
Learn key
concepts related Detailed study of
National Income
2 to national Dornbuch et. al.,
Accounting
income 2010 - Chap 2
accounting
Learn key
concepts related Detailed study of
National Income
1 to national Dornbuch et. al.,
Accounting income 2010 - Chap 2
accounting
3 Learn key
concepts related
Measurement of Detailed study of
to measurement
2 Macroeconomics Froyen 2005-
of
Variables Chap 2
macroeconomics To define the key
variables concepts related to
Knowledge,
Learn key measurement of
Application
concepts related macroeconomics
Measurement of Detailed study of
to measurement variables
1 Macroeconomics Froyen 2005-
of
Variables Chap 2
macroeconomics
variables
4
Learn key
concepts related
Measurement of Detailed study of
to measurement
2 Macroeconomics Froyen 2005 -
of
Variables Chap 2
macroeconomics
variables
Class discussion
Revising all the
1 Recap of all topics and exam Class discussion
5 Sessional Exam - I topics
preparation
2 Exam First Sessional Attempting exam Exam
Learn key Detailed study of
Classical concepts related Froyen 2005 -
1 To define the key
Macroeconomics to classical Chap 3
concepts related to
macroeconomics Knowledge,
6 classical and
Learn key Application Detailed study of
Keynesian
Classical concepts related Froyen 2005 -
2 macroeconomics
Macroeconomics to classical Chap 3, 4
macroeconomics

Module Handbook of Macroeconomics for the students of BEC-2 Fall 2019 Semester at Department of
Economics, COMSATS University Islamabad, Pakistan
5
Course Instructor: Dr. Shahzad Kouser
 Learn key Detailed study of
Classical concepts related Froyen 2005 -
1
Macroeconomics to classical Chap 4
macroeconomics
7 Keynesian Detailed study of
Learn key
Macroeconomics: Froyen 2005 -
The Role of concepts related Chap 6
2
Aggregate Demand to Keynesian
(Keynesian System I) Macroeconomics
Keynesian Detailed study of
Macroeconomics:The Froyen 2005 -
Learn key
Role of Aggregate Chap 6, 7
concepts related
1 Demand and Money,
to Keynesian
Interest and Income
Macroeconomics
(Keynesian System I
8
& II)
Keynesian Detailed study of
Learn key
Macroeconomics: Froyen 2005 -
concepts related
2 Money, Interest and To define the key Chap 7
to Keynesian
Income (Keynesian concepts related to
Macroeconomics
System II) Knowledge, Keynesian
Learn key Application Macroeconomics Detailed study of
Aggregate Demand I:
concepts related and aggregate Mankiw, 2016 -
1 Building the IS–LM
to aggregate demand I Chap 10
Model
demand I
9
Learn key
Aggregate Demand I: Detailed study of
concepts related
2 Building the IS–LM Mankiw, 2016 -
to aggregate
Model demand I Chap 10
Learn key
Aggregate Demand I: Detailed study of
concepts related
1 Building the IS–LM Mankiw, 2016 -
to aggregate
10 Model Chap 10
demand I
Sessional Exam -
2 Exam Second Sessional Attempting exam Exam
II
Aggregate Demand Learn key
II: Policy effects in concepts related Detailed study of
1 the IS–LM Model to aggregate Froyen 2005-
(Keynesian System demand II Chap 8
III)
11
Aggregate Demand Learn key
II: Policy effects in concepts related Detailed study of
the IS–LM Model to aggregate To define the key
2 Froyen 2005-
(Keynesian System demand II Knowledge, concepts related to
Chap 8
III) Application, aggregate demand
Comprehension II and Keynesian
Keynesian System Learn key
system IV Detailed study of
IV (Aggregate concepts related
1 Froyen 2005-
Demand and to Keynesian
Chap 9
Aggregate Supply) system IV
12
Keynesian System Learn key
Detailed study of
IV (Aggregate concepts related
2 Froyen 2005-
Demand and to Keynesian
Chap 9
Aggregate Supply) system IV
Inflation and
Unemployment: Learn key To define the key
Knowledge, Detailed study of
Phillips concepts related concepts related to
13 1 Application, Branson 1989 -
Curve/Expectation to augmentation inflation and
Comprehension Chap 20
Augmentation Philips curve unemployment
Phillips Curve

Module Handbook of Macroeconomics for the students of BEC-2 Fall 2019 Semester at Department of 6
 Inflation and
Unemployment: Learn key
Detailed study of
Phillips concepts related
2 Branson 1989 -
Curve/Expectation to augmentation
Chap 20
Augmentation Philips curve
Phillips Curve
Learn key
Detailed study of
Theories of concepts related
1 Mankiw, 2016 -
Consumption to theories of
Chap 17
consumption
14
Learn key
Detailed study of
Theories of concepts related
2 Mankiw, 2016 -
Consumption to theories of
Chap 17
consumption
To define theories
Learn key
Knowledge, of consumption and Detailed study of
Theories of concepts related
1 Application, the key concepts Mankiw, 2016 -
Consumption to theories of
Comprehension related to saving Chap 17
consumption and investment
15
Learn key
Detailed study of
Saving and concepts related
2 Mankiw, 2016 -
Investment to saving and
Chap 18
investment
Learn key
Detailed study of
Saving and concepts related
1 Mankiw, 2016 -
Investment to saving and
16 Chap 18
investment
Revising all the
2 Recap all discussion Class discussion Recap Class discussion
topics

* Exactly what students should do to demonstrate mastery at the thinking level indicated

Module Handbook of Macroeconomics for the students of BEC-2 Fall 2019 Semester at Department of 7