Department of Economics and Social Sciences (ESS)

ECO 102: INTRODUCTION TO MACROECONOMICS

Semester: Fall 2018

Section: 03 & 05
Class Hours: 3:30 pm – 4:50 pm Sunday & Tuesday
02:00 pm - 03:20 pm Monday & Wednesday

Instructor: Sifat Islam Ishty [SIF]

Email: sifat.ishty@bracu.ac.bd
Office Hours: UB40714, Sunday & Tuesday 2:00 pm-3:30pm, Monday & Wednesday 12:30pm-2:00pm
You must book an appointment before coming to the consultation hours

I. Rationale:
Macroeconomics is the study of aggregate economic behavior of the entire economy. This course
introduces the basic theoretical models used in macroeconomics and examines the key macroeconomic
variables. This course is the foundation for Macroeconomics and is required for better understanding of
any further macroeconomic course.

II. Course Aim and Learning Outcomes

Aim
This course aims to develop a general framework to analyze and understand the real-world
macroeconomic experiences. The key topics included are aggregate demand and supply, national income
accounting and public accounts, GDP and economic growth, business cycles, unemployment and
inflation, money and interest rates, fiscal and monetary policy. Students will also learn about Keynesian,
Classical and Monetarist views of how the economy works and about what policy authorities should do –
if anything – to intervene in the macro economy. Throughout the course we will look at real-world data
and discuss real-world institutions and issues – including the recent recession and what the government
and Central Bank can do about it.

Specific Learning Outcomes:

Upon completion of the course students should be able to-
 apply the theoretical models to explain how the economy behaves
 critically interpret and analyze economic news by looking at the variables of interest
 explain a variety of real world macroeconomic issues for increased global thinking
 evaluate explanations of macroeconomic policies and their outcomes
 relate the roles of various national and international agencies involved/responsible for managing the
economy
 improve their communication skills through interaction and presentations depending on their
understanding in the class

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 III. Format and Procedures:
1. General Policies:
 BRAC University policy regarding minimum required attendance to sit for exams applies.
 Strictly NO MAKEUP for any exam be it a quiz/assignment/midterm if missed.
 Students are expected to maintain proper classroom decorum.
 Use of mobile phones, pagers, iPods and any device that may disrupt the class must be turned off
or put to silence during lectures.

2. Exams:
The course will include three quizzes, one midterm and a final exam. The average of the best two quizzes
will be counted. Midterm will be taken during the mid-term week and will cover the materials taught
during the first 6 weeks of classes. The Final exam will be comprehensive and will have a common
question across all sections.

3. Assignments:
The course will include two assignments. Students will be provided with the assignments one week ahead
of the due date. All submissions must be made in the beginning of class on the day that it is due. No
exceptions will be made for late submissions.

IV. My Stance:
Please note that no handouts/slides will be made available for this course. The best way to learn this
course is to understand the class lecture and solve any query during class time for clarifying your
understanding. Students are expected to review the contents covered every week as the concepts are
interrelated and clear understanding of said material is required as the course progresses Group studies
should be done. Examples should be studied carefully.

V. Course Requirements:
1. Class attendance and class participation make an important part of the course. Active class participation
is highly encouraged and will be rewarded. The class attendance is as per the BRAC University policy.

2. Course readings:
“Economics” by Michael Parkin, Melanie Powell, and Kent Matthews, 10th edition (or the latest edition
available), Pearson Education Limited (Chapters 20-30).

VI. Grading Procedures:

Attendance and class participation 5%
Presentation 10%
Quiz (Average of 2) 15%
Midterm 20%
Final Exam 50%
Total: 100%

VII. Academic Integrity:

You are encouraged to study together and to discuss information and concepts covered in class with other
students. However, this permissible cooperation should never involve one student having possession of a
copy of all or part of work done by someone else. If there is evidence of plagiarism, both the student who
copied work from another student and the student who gave the material to be copied will automatically
receive a zero for the assignment/quiz/exam. Penalty for violation of this code can also be extended to
include failure of the course and University disciplinary action.

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 Plagiarism Warning
BRAC University requires students to act in an honest manner. Copying from another student or copying
from published or unpublished or electronic sources without appropriate citations or quotations is
plagiarism. Such dishonest practices will automatically result in students getting zero marks.
Additionally they will be reported to the university authorities for further disciplinary actions. You should
also note that extensive quotation from the same source, even if properly acknowledged, does not
demonstrate your understanding. Such work cannot receive a high grade.

VIII. Accommodations for students with disabilities:

I am available to discuss appropriate academic accommodations that may be required for students with
disabilities. Requests for academic accommodations are to be made during the first three weeks of the
semester, except for unusual circumstances, so that arrangements can be made. Students are encouraged
to register with Student Disability Services to verify their eligibility for appropriate accommodations.

IX. Schedule of Topics:

Week Topic Text Ref.

Introduction and review of course outline and objectives

The scope of macro economics

Monitoring Macroeconomic Performance:
-Measuring GDP, use and limitations of real GDP.
-Monitoring Jobs and Inflation: Employment and unemployment, unemployment and full
employment.
- Types of Unemployment, The Business Cycle
- The price level, inflation and deflation.

Macroeconomics Trends:
- The basics of economic growth, economic growth trends, how potential GDP grows
-How potential GDP grows: Factors and graphical illustrations

Macroeconomic Fluctuations: Parkin, Powell

Chapter 26

-Explaining macroeconomic trends and fluctuations

-macroeconomic schools of thought: The Classical, Keynesian and Monetarist view

Finance, Saving and Investment:

- Financial institutions and financial markets
-The loanable funds markets

Week Topic Text Ref.

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 Money, the Price Level and Inflation:
Chapter 24
- monetary financial institutions
- Central Banks policy tools
-How bank creates money

- the quantity theory of money

- Money market equilibrium – movements and shifts
Expenditure multipliers
-Expenditure, consumption and saving plans

- Aggregate planned expenditure and real GDP

-Multiplier effects: Derivation from the Appendix
11 The Business Cycle, Inflation and deflation
-Mainstream business cycle theory Chapter 28
-Demand –Pull Inflation,
-Cost-Push Inflation and
-Expected Inflation

Macroeconomic Fluctuations:
Fiscal Policy – government budgets, supply side effects of fiscal policy,
Monetary Policy: how monetary policy is used to fight recession
Chapter 30

X. Disclaimer:
The instructor reserves the right to make changes to any part of this syllabus. Should such instances arise;
students will be notified in advance.

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