NATIONAL UNIVERSITY OF MODERN LANGUAGES

Faculty of Management Sciences

COURSE OUTLINE
BBA-Semester-IV

NATIONAL UNIVERSITY OF MODERN LANGUAGES

COURSE: Macroeconomics

Course Description:

This course is an introduction to Macroeconomics. Macroeconomics is the study of the behavior

of overall economy as opposed to the behavior of individuals, firms, or a particular market.
Topics of interest include aggregate economic growth, unemployment, inflation, fiscal and
monetary policies, and international financial markets. This course requires critical
understanding of key definitions and concepts and analytical thinking.

Course Objectives:

To provide the students with an introduction to the basic macroeconomic principles; to enable
students to use those concepts and principles to critically analyze current macroeconomic issues
and situations; and develop a global awareness from an economic perspective.

Recommended Books:
ECONOMICS by SameulsonNordhaus. 19th Edition. By McGraw Hills Publications.
Modern Economic Theory: Micro and Macro Analysis by K.K. Dewett.
Learning Outcomes:
Upon successful completion of Course, the student will:

Using national income statistics students will be able to describe and analyze the
economy and economic variables in quantitative terms.
Students will be able to utilize economic model such as the aggregate supply/aggregate
demand model and describe the interrelationships among prices, income and interest rates
as they affect consumption, saving and investment.
Students will be able to explain and evaluate the economic challenges of unemployment,
inflation, and economic growth.
Students will be able to describe the banking and monetary system, and analyze the role
of money, credit, and monetary policy.
Students will be able to use monetary and fiscal policy.
Students will be able to describe the role of international trade and finance on domestic
economic activity.
Week # Lecture # TOPICS TO BE COVERED
1. Difference between Micro & Macroeconomics.
1. Objectives & Instruments of Macroeconomics.
2. Monetary & Fiscal Policy.
3. Measuring Economic Success.
2. 4. Aggregate Supply &Demand.
Shocks &Stagflation.
5. GDP: Two Measures of National Product.
Flow of Product Approach, Earning or Cost Approach.
3.
6. Value Added Approach.
Real GDP vs. Nominal GDP
7. Components of GDP.
4. 8. GNP, NDP, National Income, Disposable Income.
Price indexes & inflation. CPI, GDP Deflator, PPI.
9. Consumption & Saving. Break-even point.
5. 10. Saving Function.
MPC, MPS. Determinates of Consumption.
11. Investment. Determinates of Investment
Investment Demand Curve. Shifts in Investment Demand Curve.
6.
12 Features of Business Cycles & Theories.
Foundations of AD & Downward Slopping Demand Curve & Shifts.
13. The Multiplier Model. Output Determination with Saving & Investment.
Multiplier Model compared with AD & AS Model.
7.
14. Fiscal Policy in Multiplier Model.
Impact of Taxes on AD.
MID TERM EXAMS
 MID TERM BREAK
15. Evolution of Money. Real vs. Normal Interest Rates.
Demand for Money.
Banking & Supply of Money.
8.
16. Financial Economics.
Risk & Return on Assets.
The Stock Market. Bubbles & Crashes.
17. Functions of Central bank.
Nuts & Bolts of Monetary Policy.
9. 18. The effects of Money on Output & Prices.
The Monetary Transmission Mechanism.
Monetary policy in AD & AS Framework.
19. Four wheels of Growth.
10. Theories of Eco. Growth.
20. Sources of Eco. Growth.
21. Fixed Exchange Rates & Flexible Exchange Rates.
11.
22. The Determination of Foreign Exchange Rates.
23. The Effects of change in Trade.
12.
24. Exchange rates & Balance of Payment
25. Measuring Unemployment.
Impact of Unemployment.
13.
26. Okuns Law.
Kinds of Unemployment
27. REVISION
14.
28.
END TERM EXAMS

The number of weeks given can vary as the above schedule is tentative. Also, the date of
examination may be shifted later or earlier.