Bachelors of Business Administration

Macroeconomics

Subject Outline

Course code: [BUS242]

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SUBJECT OUTLINE:

Subject Details………………………………………………………………….…………… [3]

Pre requisites and presumed knowledge …………………………………….……………… [3]
Synopsis …………………………………………………………………………………… [3]
Subject rationale ……………………………………………………………………………. [3]
Study Load …………………………………………………………………………………. [3]
Course Objectives ……………………………………………………………….………….. [4]
Learning outcomes …………………………………………………………………………. [5]
Content ………………………………………………………………………….………….. [6]
Resources …………………………………………………………………………………... [9]
Prescribed textbook ………………………………………………………………………… [9]
Grading Policy ……………………………………………………………………….…….. [10]
Marks Distribution …………………………………………………………………………. [10]
Marks Distribution of 100%:

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Subject details:

Course Title: BUS242

Subject Credit Hours: 03
Degree: BBA
Associated courses: Microeconomics

Pre requisites and presumed knowledge:

Macroeconomics is regarded as a fundamental course of economics. It deals and caters to the

aggregate units prevailing in the economy. Contrary to microeconomics, the course of
macroeconomics studies the economy as a whole, therefore; the students opting for this subject must
have a consolidated command over the micro-economic-level concepts and functions.

Synopsis:

Economics as a mother of all social sciences is regarded as a vital engine for business graduates.
Macroeconomics is one of its key-branches that try to comprehend the performance, structure,
behavior and decisiveness of an economy as a whole. The subject does not only cater to local or
national economy but also to regional and global economy.

Subject rationale:

A thorough understanding of macroeconomics is indispensable for the students gauging holistic

command over the basic concepts and implementations of economic models, theories and mechanisms
installed at national level. After studying the subject, the students will be able to comprehend, analyze,
and give their entrepreneurial input towards large-scale or general economic factors such as interest
rates and national productivity that are key indicators of the performance of an economy.

Study load:

Aligned with the volume of learning requirements of the Higher Education Commission 3 credit point
subject nominally involves 45 hours of study. Study-related activities may include class lectures,
online videos, independent study, interaction with staff and peers, reflection, application in the
workplace, quizzes, assignment preparation, forum activities, invited speakers and other. Individual
student workload may vary during the lectures and expected to attend all lectures workshop and
tutorials throughout the semester.

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Teaching Methodology:

Teaching at Iqra University is learner oriented. Students are involved in lectures, assigned readings, reference
readings, exercises, case studies, presentations, and class/online discussions. In the same way, grading tends
to focus on the students’ overall performance and participation in the classroom activities.

Code of Conduct:

Students have to follow the rules stated below to avoid a failing grade in the course:

• Understand and follow the University policy regarding attendance.

• Arrive in and leave the classroom strictly on time. Late arrival will be marked as absence.
• If you leave the classroom in the middle of a session even for a short while, you will be marked
absent.
• Keep your cell phone off during the class.
• Do the assigned readings for a class before coming to the class.
• Maintain a disciplined, cordial, and respectful attitude towards the teacher and your fellow
students.
• Submit your homework on the due date before the class begins.
• Do not plagiarize from books, journals, or the internet.
• Do not cheat (make someone else do your work or present work for some other course as work for
this course).
• The teacher’s decisions about marks and grade will be final.

Course Objectives (COs):

The main objectives of this course are to make students:

1. Understand and discuss the fundamental concepts of Macro Economics

2. Have a sound idea of the factors responsible for economic growth.
3. Identify relationship between macroeconomic variables and fluctuations in the GDP.
4. Identify the roles carried out by different monetary institutions in the economy.
5. Identify the role of government decisions in the distribution of scarce resources to achieve
maximum satisfaction by monitoring public and private resources.
6. Understand the impact of global economies on overall functioning of the economy.

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Learning Outcomes (LOs):

At the end of this course it is expected that the student should be able to:

LO1 Understand the basic concepts of economics at macro-level

LO2 An outstanding ability to comprehend various national, regional and global economic trends.

LO3 Construction of macroeconomic techniques and models to illustrate macroeconomic

problems and potential monetary and fiscal policy solutions.

LO4 Demonstration of macroeconomic indicators and techniques to achieve sustainable economic

growth.

LO5 Understanding the significance of macroeconomics in achieving financial integration.

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 “Course Content”

Week # 1: Introduction to Macroeconomics

1 Unit Topic
Unit 1.1 What Macroeconomics is About
Unit 1.2 Macroeconomic Concerns
Unit 1.3 The Components of the Macroeconomy
Unit 1.4 The Circular Flow Diagram
Unit 1.5 Two, Three and Four Sector Economy

Week # 2: Measuring a Nation’s Income

2 Unit Topic
Unit 2.1 Concept of National Income
Unit 2.2 Other measures of National Income
Unit 2.3 The Components of GDP
Unit 2.4 Differentiate b/w Nominal and Real GDP

Week # 3: Measuring Cost of Living

3 Unit Topic
Unit 3.1 What is Inflation?
Unit 3.2 Inflation, Disinflation, and Deflation
Unit 3.3 Measuring Inflation Rate through CPI
Unit 3.4 Problems with the CPI

Week # 4: Growth, Productivity and Unemployment

4 Unit Topic
Unit 4.1 Economic Growth and Productivity
Unit 4.2 Measuring Labour Force and Unemployment Rate
Unit 4.3 Types of Unemployment: Frictional, Structural & Cyclical

Week # 5: Classical approach Vs. Keynesian approach

5 Unit Topic
Unit 5.1 Classical Economics
Unit 5.2 Causes of Great Depression
Unit 5.3 Keynesian Economics

Week # 6: The Monetary System

6 Unit Topic
Unit 6.1 Money: Functions and Kind of Money
Unit 6.2 Distinguish Money from other assets (M1 & M2)
Unit 6.3 Federal Reserve System
Unit 6.4 The Money Multiplier
Unit 6.5 Tools of Monetary Policy

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Week # 7: Theory of Aggregate Demand
7 Unit Topic
Unit 7.1 Short-run Economic Fluctuations
Unit 7.2 The Basic Model of Economic Fluctuations
Unit 7.3 Why the AD curve is downward slopping?
Unit 7.4 Why the AD curve might shift?

Week # 8: Theory of Aggregate Supply

8 Unit Topic
Unit 8.1 The Aggregate Supply Curve
Unit 8.2 Why the SRAS curve is upward slopping?
Unit 8.3 Why the SRAS curve might shift?
Unit 8.4 The Long-Run Equilibrium

Week # 9: Business Cycle

9 Unit Topic
Unit 9.1 Business Cycle
Unit 9.2 Phases of Business Cycle
Unit 9.3 Contraction & Expansion of Business Cycle

Week # 10: Consumption and Saving function

10 Unit Topic
Unit 10.1 The Consumption Function
Unit 10.2 Relationship between consumption and savings
Unit 10.3 Average and marginal propensity to consume
Unit 10.4 Average and marginal propensity to save

Week # 11: Saving, Investment and the Financial System

11 Unit Topic
Unit 11.1 The Financial System
Unit 11.2 Financial Institutions
Unit 11.3 Saving and Investment in the National Income Accounts
Unit 11.4 Markets for Loanable Funds

Week # 12: International Trade and Balance of Payment

12 Unit Topic
Unit 12.1 The Balance of Payment and International Capital Movement
Unit 12.2 Current, Capital and Financial Account
Unit 12.3 Factors affecting Balance of Payments
Unit 12.4 Exchange Rate Systems

Week # 13: The Short-run Tradeoff Between Unemployment and Inflation

13 Unit Topic
Unit 13.1 Unemployment and Inflation
Unit 13.2 Philips Curve
Unit 13.3 AD, AS, and the Phillips Curve
Unit 13.4 Shifts in Philips Curve

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Week # 14: The Influence of Monetary and Fiscal Policy on Economy
14 Unit Topic
Unit 14.1 Federal Reserve System
Unit 14.2 Economic Fluctuations and Monetary Policy
Unit 14.3 Economic Fluctuations and Fiscal Policy
Unit 14.4 Crowding Out Effect

15. Final Examination Open Book (Flexible Time)

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Resources:

Recommended Reading(s):

1. Mankiw, G.N., (2017). Principles of Economics, 8th Ed. Cengage Learning; ISBN-13:
978-1305585126; ISBN-10: 1305585127

2. Principles of Economics (2017) 12th Edition, Case, Karl E.; Fair, Ray C; Oster, Sharon
C, Published by Prentice Hall, ISBN-13: 978-0134078809; ISBN-10: 0134078802.

3. In addition, the teacher may prescribe any additional reading material.

Reference Books:

1. Macroeconomics, Andrew B. Abel, Ben Bernanke, Dean Croushore, PrenticeHall, 10th

edition (March 14, 2017) ISBN-10: 0133407926; ISBN-13: 9780133407921.

2. Economics Today, Roger LeRoy Miller, Prentice Hall, 19th edition (2019) ISBN-10:
013314867X; ISBN-13: 9780133148671

3. Economics By Design: Survey and Issues, Robert A. Collinge, RonaldM.Ayers, Prentice

Hall, 5th edition (2015) ISBN-10: 0131400584; ISBN-13: 9780131400580

4. Economics, Paul A. Samuelson, William D. Nordhaus, McGraw-Hill/Irwin; 20th edition

(2018) ISBN-10: 0072872055; ISBN-13: 978-0072872057

5. Essentials of Economics, Paul R. Gregory, Prentice Hall 6th edition (2019) ISBN-10:
0321238036; ISBN-13: 9780321238030

6. Economic Growth, David N. Weil, Prentice Hall 4th edition (2018) ISBN-10: 0321795733;
ISBN-13: 9780321795731

7. Schaum's Outline of Principles of Economics, Dominick Salvatore, EugeneDiulio, McGraw-

Hill; 2nd edition (September 7, 2011) ISBN-10: 0071762531; ISBN-13: 978-0071762533

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Rescheduling of Class:

The teachers at Iqra University are very particular about taking their classes, but in case of an
emergency, an alternate teacher may conduct the class. Students are informed through SMS in case
of rescheduling of a class.

Grading Policy:

‘A’ Grade: 88 and above

‘B+’ Grade: 81 - 87
‘B’ Grade: 74 - 80
‘C+’ Grade: 67 - 73
‘C’ Grade: 60 - 66
‘F’ Grade: Below 60

Marks Distribution of 100%:

Quizzes …………………………... Marks

Assignments/Case Studies ………. Marks
Project/Class Activities …………. Marks
0LGWHUPExam…………………… Marks
Final Exam ………………………. Marks
Total ………………………………100 Marks

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