COURSE OUTLINE

INTRODUCTION TO MACRO ECONOMICS Institute of Business & Management University of Engineering & Technology Lahore
Course Name Semester Course code Semester duration Instructor : : : : : Introduction to Macro Economics Fall 2011 Eco-201 Oct 03-Jan 28 M. Ishaque Mughal M.A. Economics (With Roll of Honour) from F.C. College Lahore M.B.A From IB &M (UET Lahore) Email Tele Required Text : : : mishaque70@yahoo.com Mobile 0333-4380610 Economics: Samuelson & William D. Nordhaus Economics: McConnel and Brue Reference books : Economics of Pakistan Dr. Khawaja Amjad Saeed Economics of Pakistan Sohail Malik Survey of Pakistan (Various Issues)

M. ISHAQUE MUGHAL

FACULTY IB&M UET

M. Ishaque Mughal is a visiting faculty member and shall be teaching economics at the institute of business and management at UET Lahore. He has a diverse work experience back ground in different educational institutions.

COURSE OBJECTIVES
The purpose of the course is to present a holistic view of economy in general. The idea here develop fundamental and comprehension and understanding of Macro Economics as a social science helps to learn a way of thinking to understand society and to understand global affairs. The aim of this course is to develop rational thoughts. To enable students with principles of Macro Economics that can be incorporated in everyday living understanding of factors which affect the overall economy in essential for the business managers. Thus this course provides a basic foundation to caring out such an analysis and helps you evaluate macroeconomic policy and economic prospects within the economy

COURSE CONTENTS
Macro Economic History National Income o Concept of NI & its different related concepts o Measurement of NI o Determination of national income In close and open economy o Real Vs nominal GDP o Deflating GDP by a price index o Determinants and problems of NI Aggregate supply and demand o Definition of aggregate supply and demand

o Aggregate supply and demand curve The basic multiplier model o Concept of multiplier effect o Graphical picture of multiplier effect (investment multiplier, fiscal policy multiplier etc) o Inflationary and deflationary gaps Consumption and saving o Consumption and saving function o Keynesian psychological law of consumption o Relative income hypothesis (Theory) o Permanent income hypothesis (Theory) Investment o Investment and capital o Determinants of investment o The investment demand curve Monetary and fiscal policies o Monetary policy: its nature objectives and instruments o Graphical analysis of monetary policy o Stagflation o Fiscal policy; its nature, objectives and instruments. o Graphical analysis of fiscal policy International trade o Concept of balance of trade (B.O.T) and balance of payment (B.O.P) o Theory of absolute advantage

o Heckscher-ohlin theory of international trade.

GRADE BREAKUP
Midterm Final Exam Quizzes (5 Quiz) Class participation Assignments Group project/ presentation Total 20% percent 30% percent 10% percent 10% percent 10% percent 20% percent 100% percent

ACADEMIC DISHONEST & ETHICS

All forms of academics dishonesty will be brought to the IB&M values & Ethics committee academic dishonesty includes (But is not limited to) plagiarism. Copying answer or work done by another student (either on an exam or on out-of-class assignment), allowing another student to copy from you, and using unauthorized materials during an exam. Please also refer to HEC policy on plagiarism placed on HEC website. The following are prohibited and strictly discouraged at IBM: Any kind of discriminatory / offensive behavior Plagiarism cheating and fabrication of the data used in assignment project and reports. Use of date from the internet or other sources without the mention of the source. Use of other classes/ course project of the use of someone elses project / assignment with your own name. Violation of any UET/IBM regulation or state law, within the premises of the university. Any action of students against the regulation and guideline established by the IB&M UET will call for serious action from the administration of IB&M as deemed appropriate

by the authorities. Any student found copying project from any other institution may be awarded an F grade in the course once it is proved in Ethics and value committees

MISCELLANEOUS INSTRUCTIONS
First and foremost: respect the instructor Individual home work means individual effort. Class sanctity is top most in our agenda while class is in session.