GC UNIVERSITY, FAISALABAD

FACULTY OF ECONOMICS & MANAGEMENT SCIENCES

Lyallpur Business School (LBS)

Course Specifications
Principles of Macro Economics
ECO-302

Spring-2024

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COURSE SPECIFICATIONS
Basic Information
Course Title: Principles of Macro Economics
Course Code: ECO-302

Course credits/week: Theory: 03 Lab: Nil Total: 03

Pre-requisite(s): Nil
Co-requisite(s):
Program(s) on which the course is given: BBA-L BA Morning Semester 2nd semester
Is the course major or minor element of the program: Major: Minor:
Department offering the program: LBS
Department offering the course: LBS
Academic year/level: 4
Last revised on (date): 12-12-2023
Overall Aims of the Courses

Course Description:
Macroeconomics studies the aggregate behavior of the economy. This course provides an
introduction to the economic analysis of key macroeconomic variables such as output,
employment, inflation, interest rates and exchange rates. The important elements of the course
include measurement of macroeconomic variables, the development of models and theories to
explain the behavior of macroeconomic variables, the use of empirical evidence in evaluating
different models, and the role of government policy in seeking to influence macroeconomic
outcomes. The course will provide students with a framework for understanding the workings of
the whole economy and the various interactions among households, business and governments.

Course Objectives are:

1. The purpose of this course is to help students learn the fundamentals of economics and they
can apply these concepts to their lives and to the world in which they live.

2. Economic theory is useful and interesting only if it can be applied to understanding actual
events in energy sector and policies. Therefore this course gives greater understanding about
economic news and issues of energy around the world.

3. It helps in decision making in order to achieve desired economic goals. It enhances the
capability of participants to understand the prevailing economic and business policy in totality
and its impact on the energy sector.

4. It improves the ability of the students to apply economic concepts to complex business
realities as well as support them to forecast in the energy business.
Learning Outcomes:
• Explain the concepts of Macroeconomics and its interrelations with Microeconomics.

• Associate the current economic phenomenon with existing theory and put their views on
contemporary economic issues.

• Apply the principle of Macroeconomics in explaining the behavior of Macroeconomic

variables at national as well as global level.
S
• Extend the concepts of Macroeconomics in unfolding the dynamics of energy sectors.
Class Format& Weekly Work Plan:
To achieve the above these are the main course components:
1st – 2nd Week
The Science of macro economics chapter #1 by N. Gregory Mankiw (page # 3-15)
3rd – 4th Week
Data of Macro Economics (National income) Chapter # 2 by N. Gregory Mankiw (page # 17-40)

5th – 6th Week

Classical theory The economy in the long run (National income where it come from where it
goes)Chapter # 3 by N. Gregory Mankiw (page # 43-74)
7th – 8th Week
consumption function Chapter # 3 by N. Gregory Mankiw (page # 43-74).Consumption function,
Saving function, Keynes psychological law of consumption, Theories of Consumption.
Seminar
9th week Mid Semester Examination
10th – 11th Week
Money and Inflation Chapter # 4 by N. Gregory Mankiw (page # 79-106).
ASC,ADC demand pull inflation ,cost push inflation, effects of inflation.
Case Study
12th – 13th Week
Unemployment Chapter # 6 by N. Gregory Mankiw (page # 163-175).
.14th – 15th Week
Fiscal policy and its objective Chapter # 8 by A.Hamid Shahid (page # 119-126).
Definition objective of fiscal policy, fiscal policy in trade cycles, role of fiscal policy in NI
determination. Role of taxes.
16th – 17th Week
Monetary policy and its objective Chapter # 8 by A.Hamid Shahid (page # 127-132).
Definition, instrument or tool of monetary policy, role of monetary policy in national income
determination.

Our weekly class Instructions and discussions will follow this format:

Week Module Intended Main Learning Objectives

• Learning about macroeconomics identifies the
components of aggregate demand which are
chapter #1 consumption investment and government
1–2 The Science of macro expenditures. Classical ,J.M.Keynes and
Economics chapter #1 hicksian economics. Scope of macro
economics, problems of macro
•
• Understanding about the concept of national
income .
• Mesurement of national income
Chapter # 2 • Rules how measure GDP
Data of Macro • GDP,GNP,NNP
3–4
Economics (National • GDP Deflator
income) • Real Verses Nominal GDP
• Assignment
• Case Study

• Learn how classical theory of income and

employment work.
• National income where it come from where it
goes)
• Production Function
Chapter # 3 National income distribution among factor of
5–6 Classical theory The production.
economy in the long run • Learn about AD &AS .
• National Income determination.
• Two sector &three sector economy
• Understanding about salient features of Keynes
theory of income and employment.
 • Learning how price level effect the economy.
After reading this students understand about
national income equilibrium take place, and
different situation of equilibrium level take
place
• Learning about Keynes law of consumption
and theories of consumption.
Chapter # 3 • Consumption function
7–8 • Autonomous consumption
Consumption Function • Induced function
• MPC & MPS
• Quiz # 1
• Seminar

• Learning about money its function, quantity

Chapter # 4 theory of money
• Types of inflation
Money and Inflation • Stage of inflation
10 – 11 • Case study
• How unemployment effects the economy
Chapter # 6 • Types of unemployment.
12 – 13
Unemployment • Quiz #2

• Knowledge about govt revenue and govt

Chapter # 8 expenditure
• What are the main source of govt revenue .
14 – 15 Fiscal policy and its • Role of fiscal policy in national income
objective determination.
• Assignment # 2
Chapter # 8 • Learning how central bank of an economy
Monetary policy control money supply
and its objective • What measure are adopt to control the money
16 – 17 International trade and supply (in case of inflation &deflation).
national income • Learn abot theories of international trade.
determination

Required Learning Resources

Text Book(s): Principles of Marco Economics
Student must buy this Book by N. Gregory Mankiw 7th edition

Recommended Book

Reference Book: Principles of Macro economics by Samuelson

&Nordhaus seventh edition printer by Von Hoffmann
press,Inc
A.Hamid Shahid . Ilmi Kitab Khana Lahore.
Macro Economics by Rudigerdornbusch,
Stanley fischer,Richard startz (senenth edition)
Facilities Required for Teaching and Learning
 Whiteboard.
-Multimedia

Assignments Schedule& Quiz

No. Week Week Due QUIZ TESTS
Assigned
Two quiz tests will be conducted during the
1 3 5 semester, best of one will be counted for final
2 14 16 grade. There will be no makeup of these tests.

Examination / Weighting of Assessments& Quizzes

Quizzes + Assignments + Class Participation + 20 %
Projects
Mid-semester examination 30 %
End-semester examination 50 %

Grading Criteria
Letter Grade Percentage Marks
A 80 -100 EXCELLENT
B 65-79.99 GOOD
C 50-64.99 SATISFACTORY
D 40-49.99 PASS
Instructor Responsibilities:
In keeping with the format of this class, I see myself as your immediate
supervisor. In that sense, I plan to mentor each of you so that you learn how
to make the best decisions possible, to understand and apply key marketing
concepts, and to prepare you to become productive employees upon
graduation. I will do my best to help each of you grow into the best marketer
you choose to become. Thus, besides class time, where I will often put you
on the spot, I expect there will be many times we will communicate outside
of class, and I will do my best to help you in a timely fashion.
Student Responsibilities:
You are expected to arrive to class on time, professionally dressed, and
prepared for the day. You should be fully prepared to discuss and debate
the course material assigned for that date. You are expected to participate at
all levels and offer objective praise and criticism of your classmates’
analyses and conclusions. This course is not for the meek or timid. You must
contribute to a greater understanding of Consumer Behavior. This course is a
combination of doing (homework), thinking, and discussing.

Useful Tools / Advice:

This course is time and labor intensive. Be certain to schedule enough time in your weekly
planning to accommodate.
You need to have good access to the Web and an e-mail account.
Please always do your best work.
It is expected that all work you submit for a grade in this class be original and prepared for this
class only.
I am always willing to see my students and will go out of my way to schedule meetings. Please
make sure that if you make an appointment that you keep it.
Finally, as will quickly become apparent, e-mail is by far the easiest and most reliable method to
reach me.

Contact Details:
Aisha Saleem Lecturer,
Lyallpur Business School,
Faculty of Economics & Management
Sciences
GC University, Faisalabad, Pakistan.
Office Hours Monday &Friday 8:00 to 04:00 PM

Phone(office): 041-9203008 E-mail

[email protected]
Course Specifications Developed By: Reviewed By
Aisha Saleem Dean (Dean FE &MS):
Date
12-12-2023

Learning Outcomes Verbs Sheet

Knowledge Comprehension Application Analysis Synthesis
Cite Associate Apply Analyze Arrange
Count Classify Calculate Appraise Assemble
Define Compare Classify Calculate Collect
Draw Compute Demonstrate Categorize Compose
Identify Contrast Determine Classify Construct
List Differentiate Dramatize Compare Create
Name Discuss Employ Debate Design
Point Distinguish Examine Diagram Formulate
Quote Estimate Illustrate Differentiate Integrate
Read Explain Interpret Distinguish Manage
Recite Express Locate Examine Organize
Record Extrapolate Operate Experiment Plan
Repeat Interpolate Order Identify Prepare
Select Locate Practice Inspect Prescribe
State Predict Report Inventory Produce
Tabulate Report Restructure Question Propose
Tell Restate Schedule Separate Specify
Trace Review Sketch Summarize Synthesize
Underline Tell Solve Test Write
Translate Translate
Use
Write