SBM-NMIMS: COURSE TEACHING PLAN

Assurance of Learning AOL Specific

Course Code

Course Title Macroeconomics

Course
Chandrima Sikdar, Souvik Dhar, Kalpana Tokas, Tanushree Mazumdar, Kalika Bansal
Instructor/s
Credit Value 3
Programme & FTMBA (Core) Trim- II
Trimester
Pre-requisite None
CLOs – (in bracket state the PLOs to map)

CLO 1) Providing an understanding of the basic macroeconomic concepts and theories.

(PLO2b)

Learning CLO 2) Relate the techniques and tools to real world economy in order develop a critical
Objectives understanding of the Macro environment in an Economy operating in a global setting.
(PLO1b)

CLO 3) Critically analyze the macroeconomics principles and policies used by economists
and policy makers in practice for an open economy (PLO 2b)

1) After completion of the course, students would be able to critically analyze and interpret the
Learning
macroeconomic conditions in an economy.
Outcomes
(Must be
2) They will have a critical understanding of macroeconomic policies and their implications for
connected to
a country as well as for the global business environment. They would understand the roles the
Learning
regulators play and their impacts on business.
Objectives)

Business Enterprises and managers, in the course of their decision making exercises more than often
need to have an idea about the aggregate demand, interest rates, price-levels & exchange rates
situations etc. that are prevailing in the economy. None of these variables are under the control of
the enterprises or the managers but any change in them have significant impact on the activity plans
of the enterprises.

Macroeconomics is that branch of economics that deals with such variables and their
interrelationships and thus explains the way an economy functions. Thus, it is important for the
Course managers to have a basic understanding of macroeconomics and hence understand:
Description
 How an economy functions? What causes fluctuations in demand? What leads to instability
in interest rates, tax rates, exchange rates and prices?
 To come to a judgment about the direction of government policies.
 Try to understand the effect of macroeconomic events on industries.

This course seeks to understand: how an economy works? How the values of one or more of the
above mentioned variables get determined? And most importantly, what are the implications of all
these for business?

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 Specific 3 1.5 AOL CLO CLO CLO CLO
assessment Credit Credit Instruments 1 2 3 4
methods (*)
Class
10 -
Participation
Quiz Embedded
20 20
Questions
Group 30
30 Rubrics
Assignment
Evaluation Final Embedded 10 30
40
Pattern Examination questions

Total 100 30 30 30
*AOL Assessment Instruments:

 Embedded Questions: Quiz, Class Test, Midterm Examination, Final Examination

 Rubrics: Case & Article Discussion, Individual Assignment

Group Projects & Viva’s, Case Problem analysis, Oral and written
communication presentations, Role Play,
Group Presentation, Group Project etc.

Asynchronous: Pre- Synchronous: Presentations/

Sessions Topics reads/ Post Case discussion / Discussion on
reads/Assignments micro economics topics

Introduction to Post Read: Presentation by Faculty:

macroeconomics; The circular
flow diagram of an economy’s
Income and Expenditure,
Historical development of
Macro – From Classical to
Keynes to merging of Keynes
and Classical; The Long run and
1
the Short run; Growth, Business
Cycle, Unemployment Three
Key Facts about Economic
Fluctuations
Text- Chapter 6: pp.:
117-129 Explaining the circular flow
diagram of an economy’s Income
Mankiw: and Expenditure and discussing the
Chapter 10, pp.: 195- role of various economic agents –
198. businesses, households,
Chapter 20, pp.: 420- government etc.
425.
Learning outcome:
Colander, pp.: 122-138.
Discussion to understand the
history of macroeconomics and
understand relationship between
business cycle and economic
fluctuations.
.

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 Measuring the Aggregate
Economy: Aggregate
Accounting; Calculating GDP;
NDP; GNP; Real vs. Nominal
GDP; Calculating Aggregate
Income
2 issues in the measurement of GDP,
Components of GDP, GNP and
NI.
Limitations of GDP as a
measure of wellbeing.
Price indexes.
3
Economic Growth: Growth as a
Goal. Arithmetic of growth.
Modern Economic Growth.
Uneven distribution of Growth.
The Anti-Growth view.
4
Pre-Read:
Case- The BEA Case Discussion: Case listed in
Changes the Definition pre-read.
of Investment and GDP
(Source: Mankiw-pp. Presentation by Faculty:
204-205)
The measurement of
Post Read: macroeconomic aggregates and
their interrelations.
- Text Chapter 7, pp.:
131-145 Learning outcome:
Students would understand the
After session activity: GNP and GDP deflator.
(self-study by students)
Read paper on: Beyond
GDP: The Need for
New measures of
Progress
Source: Boston
University Paper
available at :
https://www.bu.edu/par
dee/files/documents/PP
-004-GDP.pdf
Post Read:
Text: Chapter 7 pp. Discussion/Feedback on the after-
145-153 session self-study activity assigned
Mankiw2-Chapter 2- in the previous session.
pp.: 29-39.
Presentation by Faculty:
Basic macroeconomic relationships
Learning Outcome:
Students would be able to identify
the various components of GDP, NI
and GNP and their limitations.
They will also come to know on
price indexes.
Post Read: Discussion of the case listed for the
Text Chapter 8: pp. 154- session.
174 Presentation by Faculty:
Case: India’s Economic Presentation/Discussion of the
growth Growth theory
Source: Text.
Learning Outcome:
Students will come to know and be
able to apply the Economic Growth
theory and the institutional factors
influencing economic growth. They
should be able to do country wise
comparison of economic
performances applying the concept
of economics growth
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 Basic Macroeconomic
relationships, - Income-
consumption, income-saving
and interest rate – investment.
Real interest rate. Expected Rate Case: Average
of return
5 A global perspective.
The Multiplier model:
Rationale. Multiplier and
Marginal propensities.
Multiplier in real life.
Changes in equilibrium GDP
and the multiplier. Multiplier in
global context. Inflationary and
6 recessionary gap.
Fiscal Policy: Taxes, budgets,
Deficits and debt & Fiscal
Policy- Government
expenditure, Government
revenue, Fiscal & Primary
Deficit, Government Debt, Debt
burden, Financing Deficit; Fiscal
Policy and Tools of fiscal Policy
7
Monetary Policy, the supply
side: Money, Banking: Money
Creation. The fractional Reserve Shyamal Roy – pp.: 180
system. The Goldsmiths. – 204.
8 Credit creation by commercial
banks. The role of central bank Text- Chapter14
RBI and the tools available in
the hand of RBI.
Post Read: Case Discussion: Discussion of the
cases listed for the session.
Text - Chapter 10, pp.:
198-210 Presentation by Faculty:
Teaching the basic saving-
Propensities to investment relationship in the
consume: Keynesian cross context.
Case: The Great Learning Outcome:
Recession and paradox They would get an idea on short run
of Thrift business cycle fluctuation and
unemployment in the economy and
Source: Text identify the manifestation of the
same in real world
.
Pre Read: Text Chapter Presentation by Faculty
10: pp. 210-215 Presenting on the concepts of
Post Read: Text Chapter multipliers and their applications in
11: pp.: 218-236 real life.
Learning outcome:
Students would get a foundation to
understand fiscal policy and the
budget that would be taught in
future sessions. They would get to
identify the various sources of govt
expenditures and taxes and their
impact in the short run.
Pre-Read:
Case Discussion:
Case- Keynesians in the
White House? (Source- Discussion of the Case listed in pre-
Mankiw-474-475) read.
Post Read:
Presentation by Faculty:
Shyamal Roy - Chapter Presentation/Discussion to
4, pp.: 104-141. understand fiscal policy.
Learning Outcome Students
would understand and appreciate
the application of fiscal policy and
be explain the structure of union
budget of India.
Post Read:
Presentation by Faculty:
Presentation/Discussion on growth
of money supply, its costs, benefits
and its sources.
pp:287-293;Chapter 15 Case: Discussion on the case listed
,pp. 305-318 for the session.
Case: Banking, Learning Outcome:
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Monetary Policy, the supply and
the demand side: The Demand
for Money. The supply of
money and determination of
equilibrium interest rate.
Demand and Supply of Loanable
funds. The conventional and
non-conventional monetary
9 policies
The Keynesian AS/AD Model-
Components of the model; the
aggregate demand curve and its
shape; the Aggregate supply
curve and shapes of AS curves..
10
The Keynesian AS/AD Model-
the aggregate supply curve – the
short run and long run supply
curves and their shapes; factors
shifting these curves;
Equilibrium in the aggregate
11 economy – Long run;
recessionary & inflationary gap.
Fiscal and Monetary policy in
the AD-AS model.
Expansionary and
Contractionary Fiscal, Monetary
12
policy and their impacts.
Automatic Built in stabilizer
Students would get an idea about
Leverage and Financial the functioning of banking system
instability in the country and abroad. They
would get an idea about the role of
Source: Text central banks and their impacts
Pre-Read: Presentation by faculty: Teaching
Case- Quantitative students on the determination of
Easing in focus: The Interest rate and Loanable funds.
USA experience
Source::Forbes Learning Outcome:
available at Students would understand loanable
https://www.forbes.com funds and the determination of
/sites/greatspeculations/ interest rate. They would
2015/11/16/quantitative understand non-conventional
-easing-in-focus-the-u- monetary policies and appreciate
s- why these are more frequently
experience/#6f876ce25 adopted by central banks in recent
28d days.
Post Read: Text-
Chapter 16 -
pp: 323-339
Post Read: Text Presentation by faculty: Teaching
Chapter 12: pp. 241-252 the students on the derivations of
aggregate demand and supply
curves and real life factors
determining their shapes
Learning Outcome: Students will
be exposed to wealth, interest and
international effects and they will
also come to know about labor
market flexibility.
Post Read: Text, Presentation by Faculty: The
Chapter 12: pp.: 253- impact of fiscal and monetary
265 policy on the economy in the short
as well as in the long run.
Case: Stimulus and the
Great Recession. Learning outcome:
Source: Text The students would have an
understanding of recessionary and
inflationary gap and would be able
to assess their impact on the
economy in the medium run and
long run
Post Read: Text. Pp. Presentation by Faculty:
266-283 Presentation on fiscal and
monetary issues in the AD-AS
Case: The Social context
Security and Medicare Case: Discussion of the case listed
Time Bombs for the session.
Source: Text
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Macroeconomic Problems:
Inflation, Deflation and
Macroeconomic Policy – types
of inflation; measuring
inflation; cost of inflation;
inflation and quantity theory of
money (revisited);the extension
of Aggregate supply and the
13
Philips curve: inflation and
unemployment trade off. The
long run Phillips Curve
Current Issues in Macro Theory
and Policy. Macro instability:
Different views: Monetarist
View, Real Business cycle view.
Neo Classical view of Self
14 correction. Mainstream view of
Self Correction.
Macroeconomic Problems: Jobs Post Read:
and Unemployment and
Government Policy to handle it Mankiw – Chapter 15, Unemployment and Government
pp.: 297-
316.
15
Trade – Comparative
16 Advantage, Exchange Rate &
Globalization; Principles of
Comparative Advantage, Gains
Learning Outcome:
Students would understand Role of
fiscal and Monetary policy together
in the AD-AS context and would
be able to explain the automatic
stabilizer
Case Discussion:
Post Read: Text:
Chapter 19 ,pp.: 387- Discussion on the case listed for the
405 session
Presentation by Faculty:
Case: Inflation- Presenting on different kinds of
unemployment trade off inflation and impact of inflation in
in India. the short run and the long run.
Learning Outcome:
Students would be able to
understand and interpret real life
inflation. They will understand and
be able to analyze the policies taken
to deal with the challenges
Post Read: Text: Presentation by Faculty:
Chapter 20 - pp:406- Discussion of the issues from
419 different perspectives.
Case: Too much Case: Discussion of the case listed
Money? for the session.
Source Text
Learning Outcome
Students will come to know about
and appreciate different
perspectives of policy making.
Presentation by Faculty:
Policy
Learning outcome:
Students would be exposed to the
job market issues in the Indian
market
Discussion: World Economic
Situation and Prospects
Source:
https://www.un.org/development/
desa/dpad/wp-
content/uploads/sites/45/publicati
on/wesp_mb111.pdf
Post Read: Chapter 21 Presentation by Faculty:
Pp.: 422-435
Presentation/Discussion of open
macroeconomics with respect to
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 from Trade, Distributional
Effects of trade, Trade and
Exchange Rate
International Trade Policies –
Trade Restrictions; Reasons for
Trade Restrictions. Roles of
Multilateral trade Agreements
17
International Financial Policy –
The Balance of Payments;
Exchange Rates and
Macroeconomic Policies;
Exchange Rate systems
18
Previous International Exchange Post Read:
Rate systems. Gold standard,
Bretton Wood and Managed
Float.
Stabilization policies and the
19
impossible trinity.
Macroeconomic Policy in a Post Read:
20 Global Setting – International
Goals of Macroeconomic
Case: A CPA and a goods and service trade and the
house painter. nuances thereof.
Source: Text Case: Discussion of the case listed
for the session.
. Learning Outcome:
Students would understand
rationale of international trade and
gains from trade
Post Read: Presentation by Faculty:
Text - Chapter 21, pp: Presentation/Discussion to
435-445 understand trade policy and its
tools.
After session activity
(self-study by
students): Read article Learning outcome:
on: America ignites a Students would understand tariffs
trade war with China. and non- tariff trade barriers. It
Source: Forbes. would be easy for them to
Available at understand and interpret recent
https://www.forbes.co macroeconomic events from
m/sites/neilhowe/2018/ newspapers and govt. policies.
10/03/america-ignites-
a-trade-war-with-
china/#6a3fb09479c1
Post Read: Discussion/Feedback on the after-
session self-study activity assigned
Text – Chapter 22, in the previous session
pp:449-465
Presentation by Faculty:
Learning Outcome:
Students would understand BOP
and they would be able to compare
the Indian BOP and the US BOP.
They would understand the
determination of exchange rates
and know about forex.
Presentation by Faculty:
Text, Chapter 22 Presentation/Discussion to
Appendix. pp: 469-471 understand linkages between
loanable funds and foreign
exchange markets, and
effectiveness of different
macroeconomic policies.
Learning outcome: Students
would understand the evolution of
exchange rate regimes
Discussion on macro policy in a
global setting.
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 Policy; Monetary and Fiscal Colander – Chapter 21, Learning Outcome: Students
Policy and Trade Deficit; pp.: 457 - 469. would have a complete
International Phenomena and understanding of Global
Domestic Goals macroeconomic issues and policies

They would understand recent

macro policy changes in the era of
Global Pandemic (COVID-19):
The-covid-19-pandemic-is-forcing-
a-rethink-in-macroeconomics
(Source: Economist-

https://www.economist.com/briefin
g/2020/07/25/the-covid-19-
pandemic-is-forcing-a-rethink-in-
macroeconomics )

Discussion - Course synthesis.

Reading List and Text Book:

References McConnell, Brue, Flynn, Chaudhuri, Macroeconomics, McGraw-Hill, Edition: 22e (2021)

(along with details of

year of Publication) Reference Books:
N Gregory Mankiw, Principles of Macroeconomics- with Course Mate, Cengage,
Learning, 7th edition, 2015, Second Indian Reprint 2019.

Colander, Macroeconomics, 9th Edition, McGraw Hill Publication, 2017.

Shyamal Roy, Macroeconomic Policy Environment, latest edition, McGraw Hill
Publication, 2014.

Prepared by Faculty Team Area & Program chairpersons

Faculty Chair AOL

Approved by Dean SBM

Approved by Associate Deans

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 Group assignment
Macroeconomics
First year trimester 2 (2021-2022)

The group assignment of 30 marks would be macroeconomic analysis of an economy and critical
evaluation of its policy making. The assignment will test the students’ understanding of the theoretical
concepts developed and discussed in class and test their ability to apply it to critical analysis.

A. The assignment

Identify one of the fastest growing economies of the world. Discuss the movements of fundamental
macroeconomic variables of the economy during the last one decade and identify the reasons behind its
growth and movement of the macroeconomic variables. Discuss macroeconomic policy in this country
and critically examine the focus of such policy making. Critically examine the appropriateness of these
policies and their contribution towards the high growth momentum in the country.

B. Deliverables

 The groups will identify an economy, preferably not the same as any other group in the class.
They can optionally submit a proposal (not a part of evaluation component) to inform and get
approval on their choice of the economy.

 Data included in the analysis may be from databases like World Development Indicators; IMF;
individual economy government websites etc. The sources of data should be mentioned.

 Groups will submit interim report (not part of evaluation but submission is mandatory) by the
15th session. Feedback will be provided on this.

 Groups will submit a report (softcopy) by end of the 20th session (EOD) of the course

 The outer limit for the size of the report should be 10 pages.

 The analysis should be connected to theory learnt in class. Focus should be on the application
of the theory.

 All submissions will be checked for similarity scores. Having similarity scores beyond
acceptable limits is a serious offence, which is unethical and illegal. A similarity score of greater
than 15% will attract penalty.
o Note: All of the following are considered as plagiarism and is likely to have a high
similarity score
 Turning in someone else's work as your own
 Copying words or ideas from someone else without giving credit
 Failing to put a quotation in quotation marks
 Giving incorrect information about the source of a quotation
 Changing words but copying the sentence structure of a source without
giving credit
 Copying so many words or ideas from a source that it makes up the majority
of your work, whether you give credit or not.

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 o Similarity score is likely to be high not only if you copy from published work but also
if you use unpublished work of fellow students. Please visit the reference site to know
more about plagiarism and similarity scores
o http://www.plagiarism.org/
o Penalty check with respect online sources and with fellow students work

C. Organization of the report

 Title – it should be interesting and justified by the work

 Introduction – should include importance of the economy in the world economic map and
justification for the selection of the economy
 Objective of the analysis
 Analysis of the Macroeconomic scenario in the economy during the recent one decade or so.
 Analysis of macroeconomic policies in the economy during the time
 Connecting policies to performance of the economy
 Conclusion – should touch upon the economic issues, challenges and prospects of the
economy

D. Scheme of Marks

 Title – (2)
 Introduction – (3)
 Objective of the analysis – (3)
 Analysis of Macroeconomic scenario in the economy during the recent one decade or so - (5)
 Analysis of macroeconomic policies in the economy during the time - (5)
 Connecting policies to performance of the economy - (5)
 Conclusion - (4)
 References and sources – (3)

******

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 Course: Macroeconomics
Trimester II
Assessment: Group Assignment

CLO3 (PLO2b) – Critically analyze the macroeconomics principles and policies used by
economists and policy makers in practice for an open economy (PLO2b)

Faculty : _______________________________________________________

Name of the student : ______________________________________________________

Roll Number : _______________________________________________________

Aspect/Lear Unsatisfactor Satisfactory Good Very Good Exemplary Sco

ning Output y (41%-60%) (61%-70%) 71%-85% >85% re
(30-40%
range)
Identifies the Demonstrates Demonstrates Demonstrates Demonstrates Demonstrates
rationale for poor partial adequate advanced excellent
the study knowledge knowledge knowledge knowledge knowledge
and and and and and and
accordingly understanding understanding understanding understanding understanding
provides the of the of the of the of the of the
title and functioning of functioning of functioning of functioning of functioning of
builds the an economy, an economy, an economy, an economy, an economy,
introduction related related related related related
policies and policies and policies and policies and policies and
(8 marks) performances performances performances performances performances
of the of the of the of the of the
institutions. institutions. institutions. institutions. institutions.
Fails to Partially Fairly Adequately Superbly
demonstrate demonstrates demonstrates demonstrates demonstrates
the importance the importance the importance the importance the importance
of such of such of such of such of such
analysis and analysis and analysis and analysis and analysis and
analyze its analyze its analyze its analyze its analyze its
impact for impact for impact for impact for impact for
business business business business business
decision decision decision decision decision
making making making . making . making
Identifies the Student fails Student Student Student does a Student does
key issues to identify partially identifies key very good job an excellent
and the the key identifies key issues/govern in identifying job in
problems in issues/govern issues/govern ment key identifying
the economy ment ment intervention in issues/govern key
along with intervention in intervention in the economy ment issues/govern
Government the economy the economy and more or intervention in ment
policy and fails to but fails to less connects the economy intervention in
intervention explain the connect it to it to the and connects the economy
overtime structural the structural structural it logically to and connects
evolution of evolution of evolution of the structural it logically to
(5 marks) the economy the economy the economy evolution of the structural
the economy. evolution of
the economy.

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Analyses the Students have Demonstrates Demonstrates Demonstrates Demonstrates
various vague notion partial clarity clarity in very good excellent
policy tools regarding the in understanding clarity in clarity in
and their policy tools understanding the policy understanding understanding
interrelation and their the policy tools and their the policy the policy
ship in the interrelationsh tools and their interrelationsh tools and their tools and their
economy ip in the interrelationsh ip in the interrelationsh interrelationsh
economy. ip in the economy ip in the ip in the
(5 marks) economy economy. economy.

Providing an Providing Providing Providing Providing Providing

opinion irrelevant fairly relevant adequately very good excellent
about the opinion and opinion and practical opinion and opinion and
future path impractical moderately opinion and very very
(5 marks) policy pragmatic pragmatic pragmatic and pragmatic,
prescriptions policy policy feasible policy feasible,
prescriptions. prescriptions. prescriptions. economic and
balanced
policy
prescriptions

Conclusion Conclusions Conclusions Conclusions Conclusions Conclusions

(4 mark) do not clearly follow from follow from clearly follow clearly follow
follow from the theoretical theoretical from the from the
the theoretical discussion and discussion and theoretical theoretical
discussion and analysis of analysis of discussion and discussion and
analysis of supporting supporting the analysis of the analysis of
supporting data or data or supporting supporting
data of evidence evidence data or data or
evidence which shows evidence evidence
conceptual which shows which shows
clarity and very good exceptional
rigor. conceptual conceptual
clarity and clarity and
rigor. rigor.

Referencing Major Some citations Attempt has Referencing is Referencing is

(3 mark) problems exist are missing in been made to very good. exceptional.
with the main write deal with There are There are no
references. up. Some references in almost no issues with
Many citations references are the write up. issues with citations in the
in the main missing in the There are very citations in the main write up
write up are reference list few problems main write up or in the
missing. or the with citations or in the reference list.
Reference list reference list in the main reference list. The Reference
is either is slightly write up and list includes
absent or problematic. in the seminal and
seriously reference list. world class
problematic articles.

Total Score

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