Course Outline
COURSE TITLE: Principles of Macroeconomics COURSE TEACHER: Asst. Professor Md. Shariful
COURSE CODE: ECON1201 Islam
BATCH & SECTION: Batch-16, Section-A, B Department: Economics
SEMESTER & YEAR:2nd Semester, 1st year EMAIL: [email protected]
DURATION: 6 months CELL NO: 01916299514
COURSE DESCRIPTION: Macroeconomics is the study of economy-wide phenomena, basically the “big” picture.
Over the course of the semester we will study the theory of income determination including national income
concepts, business cycles, unemployment, inflation, economic growth and development, monetary and fiscal policy,
public debt, the banking systems, patterns of government expenditures, international trade and finance. We will relate
these concepts to current events in Bangladesh and around the world.
Course Goals:
To provide the student with an introduction to the basic macroeconomic principles; to enable students to appreciate
the workings of real and money markets and the nature of equilibrium in each market; to emphasize the role of
macroeconomics policies that affect internal and external deficits, inflation and growth of per capita income.
Throughout the course a focus will be on “critical thinking” to analyze macroeconomic problems.
DISTRIBUTION OF WEIGHTAGE:
Remarks Distribution
Final Examination 35%
One Mid-term 15%
Six Class Tests 12%
Term Paper (Individual) including Presentation 10%
Assignments and Case Studies (Individual/Group) including 10%
Presentation
Regular Class Participation and Presentation 5%
Class Attendance 10%
Attitude/Conduct/Manner 3%
Total: 100%
GRADING:
Numerical Grade Letter Grade Grade Point
80% and above A (A Plus) 4.00
75% to < 80% A (A Regular) 3.75
70% to < 75% A (A Minus) 3.50
65% to < 70% B (B Plus) 3.25
Numerical Grade Letter Grade Grade Point
60% to < 65% B (B Regular) 3.00
55% to < 60% B (B Minus) 2.75
50% to < 55% C (C Plus) 2.50
45% to < 50% C (C Regular) 2.25
40% to < 45% D - 2.00
< 40% F - 0.00
----------------------- I - Incomplete
----------------------- W - Withdrawal/Withdrawn
Recommended books
Basic text: Paul A. Samuelson, Economics, 20th edition
Reference:
1. N. Gregory Mankiw, Principles of Macroeconomics, 6th edition
2. Ministry of Finance, Bangladesh Economic Review, 2015
3. Any additional readings will be supplied by the lecturer.
& class notes
Course Details:
Week Lecture Topics to be Sub Topics
Discussed
1 1 Introducing; Course 1. Overview of the course
outline and other 2. Importance of Studying Economics
aspects of the 3. Course policy
4. Assessment policy
course.
2 Overview of 1. Microeconomics vs. Macroeconomics
Macroeconomics: 2. Meaning of Macro Economics
3. The birth of Macroeconomics
4. Development of Macroeconomics
2 3 Overview of 1. Objectives of Instruments of Macroeconomics,
Macroeconomics: 2. tools of macroeconomics,
3. Basic Concepts in Macroeconomics
4. International Linkages
5. Aggregate demand and Aggregate supply
4 Measuring National 1. Circular Flow of Income,
Output and Income: 2. Factors Affecting the Size of the Nation's Income ,
3. Various Measures of national income
4. GDP,GNP,NNP,NDP
3 5 Measuring National 1. Methods of National Income,
Output and Income: 2. Difficulties of National Income accounting,
3. Real GDP vs Nominal GDP,
4. The use of national income statistics
6 Measuring National 1. The Components of GDP,
Output and Income: 2. Calculation of Nominal GDP, Real GDP,
3. GDP Growth Rate and GDP Deflator,
4. Is GDP a Good Measure of Economic Well-Being?
4 7 Measuring of the cost 1. Price Index-CPI, PPI, GDP Deflator,
of living: 2. Calculation of Inflation rate using CPI
3. Problems in Measuring the Cost of Living,
4. The GDP Deflator versus the Consumer Price Index
8 Consumption and 1. Consumption, income and Savings,
Investment: 2. The consumption Function,
3. Keynesian theory of income and employment,
4. MPC, MPS, APC, APS, Determinants of consumption,
5 9 Consumption and 1. Determinants of Investment-
Investment: 2. Revenues, Costs, Expectations,
3. The investment Demand curve,
4. Shifts of Investment demand Curve
10 Production and 1. Productivity:
Growth : 2. Its Role and Determinants-
3. Why Productivity Is So Important,
4. How Productivity Is Determined,
6 11 Production and 1. Economic Growth and Public Policy- Saving and Investment ,
Growth : 2. Diminishing Returns and the Catch-Up Effect
3. Investment from Abroad, Education ,Health and Nutrition ,
4. Property Rights and Political Stability
12 Central Banking and 1. The Meaning of Money,
the Monetary Policy: 2. The Functions of Money ,
3. The Kinds of Money ,
4. Money in the Bangladesh Economy
7 13 Central Banking and 1. Banks and the Money Supply ,
the Monetary Policy: 2. The Simple Case of 100-Percent-Reserve Banking ,
3. Money Creation with Fractional-Reserve Banking,
4. The Money Multiplier
14 Central Banking and 1.Tools of Monetary Control, How the central bank Influences the Quantity of Reserv
the Monetary Policy central bank Influences the Reserve Ratio, Problems in Controlling the Money Supply
8 15 Unemployment, 1. Defining Unemployment,
Inflation and 2. Labor Force,
Economic Policy: 3. measuring unemployment,
4. impact of unemployment, Okun’s Law
16 Unemployment, 1. kinds of unemployment:
Inflation and 2. Voluntary unemployment,
Economic Policy: 3. involuntary unemployment
4. -frictional, structural, cyclical, seasonal
9 17 Unemployment, 1. Define inflation,
Inflation and 2. the history of inflation,
Economic Policy: 3. three starins of inflation,
4. anticipated vs unanticipated inflation
18 Unemployment, 1. modern theory of inflation-
Inflation and 2. demand pull and cost push inflation,
Economic Policy: 3. Costs of inflation,
4. The Phillips Curve
10 19 MIDTERM EXAM
20 Exchange rates and 1. International linkages,
the International 2. Trends in Foreign trade,
Financial Systems : 3. Balance of payments,,
4. components of Balance of payments
11 21 Exchange rates and 1. Defining foreign exchange rates,
the International 2. the foreign exchange Market,
Financial Systems: 3. participants of FOREX market,
4. Why Currency exchange?
22 Exchange rates and 1. The determination of Foreign exchange rates,
the International 2. Fixed exchange rate system,
Financial Systems 3. Floating exchange rate system, managed floating and pegged system.,
4. Purchasing Power Parity.
12 23 Exchange rates and 1. Depreciation, appreciation,
the International 2. Devaluation, revaluation,
Financial Systems: 3. Spot rate, forward rate,
4. Effects of changes in exchange rates in trade.
24 Business Fluctuation 1. Business cycle,
and the Aggregate 2. Phases of Business cycle,
demand and 3. Features of business cycle phases,
Aggregate supply: 4. Bangladesh’s position.
13 25 Business Fluctuation 1. Explaining Short-Run Economic Fluctuations,
and the Aggregate 2. The Assumptions of Classical Economics ,
demand and 3. The Reality of Short-Run Fluctuations ,The Social Influences of Economic Downtu
Aggregate supply: 4. The Model of Aggregate Demand and Aggregate Supply
26 Business Fluctuation 1. The Aggregate-Demand Curve,
and the Aggregate 2. Why the Aggregate-Demand Curve Slopes Downward ,
demand and 3. Why the Aggregate-Demand Curve Might Shift ,The Aggregate-Supply Curve ,
Aggregate supply: 4. Why the Aggregate-Supply Curve Is Vertical in the Long Run
14 27 Business Fluctuation 1. Why the Long-Run Aggregate-Supply Curve MightShift ,
and the Aggregate 2. Using Aggregate Demand and Aggregate Supply To Depict Long-Run Growth and
demand and 3. Why the Aggregate-Supply Curve Slopes Upward in the Short Run,
Aggregate supply: 4. Why the Short-Run Aggregate-Supply Curve Might Shift
28 Business Fluctuation 1. Two Causes of Economic Fluctuations ,
and the Aggregate 2. The Effects of a Shift in Aggregate Demand , Case Study: Two Big Shifts in Aggre
demand and Demand: The Great Depression and World War II
Aggregate supply: 3. Case Study: The Recession of 2008–2009 , The Effects of a Shift in Aggregate Su
4. Case Study: Oil and the Economy
15 29 The influence of 1. How Monetary Policy Influences Aggregate Demand ,
Monetary and Fiscal 2. The Theory of Liquidity Preference ,
Policy on Aggregate 3. The Downward Slope of the Aggregate-Demand Curve ,
demand: 4. Changes in the Money Supply ,
30 The influence of 1. How Fiscal Policy Influences Aggregate Demand ,
Monetary and Fiscal 2. Changes in Government Purchases , The Multiplier Effect ,
Policy on Aggregate 3. A Formula for the Spending Multiplier , Other Applications of the Multiplier Effect
demand: 4. The Crowding-Out Effect, Changes in Taxes
16 31 Macroeconomic
Situation In
Bangladesh
32 Macroeconomic
Situation In
Bangladesh
