MECO 121 Principles of Macroeconomics Spring Semester 2018 Instructor Dr. Ummad Mazhar Room No. SDSB 324 Office Hours Tuesday and Thursday (11.30 to 1.00) or by appointment Email ummad.mazhar@lums.edu.pk Telephone TBA Secretary/TA Sec: Bushra Kanwal TA Office Hours TBA Course URL (if any) SUraj.lums.edu.pk/~ro/ COURSE BASICS Credit Hours 3 Cus Lecture(s) Nbr of Lec(s) Per Week 2 Duration 75 min/session Recitation/Lab (per week) Nbr of Lec(s) Per Week Duration Tutorial (per week) Nbr of Lec(s) Per Week Duration COURSE DISTRIBUTION Core Elective Open for Student Category Close for Student Category COURSE DESCRIPTION To provide the students with an introduction to the basic macroeconomic principles; to enable students to appreciate the workings of real and asset/money markets and the nature of equilibrium in each market; to emphasize the role of macroeconomic policies that affect internal and external deficits, inflation and growth of per capita income. Throughout the course a focus will be on analyzing macroeconomic problems. COURSE PREREQUISITE(S) MECO 111 OR ECON 111 COURSE LEARNING OUTCOMES (CLO) Upon successful completion of the course, students should be able to: 1. Develop an understanding of basic macroeconomic concepts and their application to real world situations. 2. Identify core macroeconomic issues related to global and Pakistan s economy 3. Enable students to understand the macroeconomic linkages with Finance, Management and Marketing. Moreover, students should also learn to: 4. Work independently and in teams (for group project) 5. Evaluate critically and apply economic models to solve real world problems.
UNDERGRADUATE PROGRAM LEARNING GOALS & OBJECTIVES General Learning Goals & Objectives Goal 1 Effective Written and Oral Communication Objective: Students will demonstrate effective writing and oral communication skills Goal 2 Ethical Understanding and Reasoning Objective: Students will demonstrate that they are able to identify and address ethical issues in an organizational context. Goal 3 Analytical Thinking and Problem Solving Skills Objective: Students will demonstrate that they are able to identify key problems and generate viable solutions. Goal 4 Application of Information Technology Objective: Students will demonstrate that they are able to use current technologies in business and management context. Goal 5 Teamwork in Diverse and Multicultural Environments Objective: Students will demonstrate that they are able to work effectively in diverse environments. Goal 6 Understanding Organizational Ecosystems Objective: Students will demonstrate that they have an understanding of Economic, Political, Regulatory, Legal, Technological, and Social environment of organizations. Major Specific Learning Goals & Objectives Goal 7 (a) Program Specific Knowledge and Understanding Objective: Students will demonstrate knowledge of key business disciplines and how they interact including application to real world situations. Goal 7 (b) Understanding the science behind the decision making process (for MGS Majors) Objective: Students will demonstrate ability to analyze a business problem, design and apply appropriate decision support tools, interpret results and make meaningful recommendations to support the decision maker PROGRAM LEARNING GOALS AND OBJECTIVES Goal 1 Effective Written and Oral Communication Goal 2 Ethical Understanding and Reasoning Goal 3 Analytical Thinking and Problem Solving Skills Goal 4 Application of Information Technology Goal 5 Teamwork in Diverse and Multicultural Environments Goal 6 Understanding Organizational Ecosystems Goal 7 (a) Program Specific Knowledge and Understanding Goal 7 (b) Understanding the science behind the decision making process COURSE LEARNING OBJECTIVES (CLO) Minor goal: Operationalized through class participation and group project (CLO#4) Minor goal: Application of microeconomic principles in real world scenario (CLO # 1,2 & 5) Minor goal: Opertioalized through prepration of group project reports and presentations (CLO#4) Minor Goal: Students have to work in random groups for project (CLO#4) Major Goal: Comprehensive coverage of topics in microeconomics (CLO# 1 5) NA COURSE ASSESSMENT ITEM CP,Project write up & presentation Quizzes and exams Project writeup and presentation Group project CP, quizzes and exams
GRADING BREAKUP AND POLICY Quiz(s) : 20% (4 quizzes: 3 will be announced; 1 will be unannounced) Group presentations 10% CP and Attendance 10% Midterm Examination: 30% Final Examination: 30% Late comers will be marked absent. Regular attendance and class participation is vital for better understanding of course. There will be no penalty for first three absences. However, up to five absences, there will be 1% reduction in CP. After five absences it will result in 2% reduction in CP for each marginal absence. After 8 absences your possibility of continuing the course will be reconsidered. EXAMINATION DETAIL Midterm Exam Final Exam COURSE OVERVIEW WEEK/ LECTURE/ TOPICS MODULE A first look at Macroeconomics 1. 2. 3. RECOMMENDED READINGS General Overview and Chapter 23 SESSION OUTCOME(S) (STUDENTS WILL BE ABLE TO ) Demonstrate and review the Basic macroeconomic concepts and their measurements National Income Accounts Chapter 23 Understand the concepts of National Income and difference between Real versus Nominal GDP Measuring the cost of living Chapter 24 Understand the measurement of Cost of Living i.e CPI and how it is measured? 4. 5. 6. 7. 8. 9. Economic Growth and Productivity Chapter 25 Understand the Determinants of productivity and growth Economic Growth and Productivity Chapter 25 Understand the Determinants of productivity and growth Labor Markets and Unemployment Chapter 28 Comprehend the different labor market indicators and different types of unemployment rate Labor Markets and Unemployment Chapter 28 To comphrehend the different labor market indicators and different types of unemployment rate Saving Investment and Financial Chapter 26 Understanding of Financial Institutions, market for System loanable funds and analysis of different policy actions on market for loanable funds Saving Investment and Financial System Chapter 26 Understanding of Financial Institutions, market for loanable funds and analysis of basic tools of finance
10. The Monetary System Chapter 29 To understand different kinds of money and functions of money. Central bank and Monetary Control Chapter 29 Demostration of the role of Central bank and 11. Money Supply and analysis of different tools of monetary control 12. Money Growth and Inflation Chapter 30 Demonstration of Quantity Theory of Money along with the concepts of money neutrality 13. Money Growth and Inflation Chapter 30 Understand the concept of inflation and deflation. Different types of inflation and cures of inflation. 14. Review Session Pre Mid 15. Mid Term Open economy macroeconomics: Chapter 31 To show the concept of International flows of 16. Basics goods and financial resources and familiarity with Balance of Payment Accounting Exchange Rates Chapter 31 Explain the basic concepts i.e. nominal versus real 17. exchange rate, appreciation and depreciation and purchasing power parity Aggregate Demand Chapter 33 To understand the business cycles and their 18. phases. Consequences of business cycles for firms and managers Aggregate Supply Chapter 33 To understand the business cycles and their 19. phases. Consequences of business cycles for firms and managers Aggregate Demand and Aggregate Chapter 33 Evaluation of aggregate supply and aggregate 20. Supply demand concepts and factors responsible for shifts in AD and AS 21. 22. Influence of policy on aggregate demand and aggregate supply Fiscal Policy, Monetary Policy and Aggregate Demand Chapter 34 Chapter 34 Evaluation of aggregate supply and aggregate demand concepts and factors responsible for shifts in AD and AS Implications of expansionary fiscal and monetary policies for aggregate demand and role of automatic stabilizers 23. Fiscal policy and multipler Chapter 34 Why fiscal policy has an multiplier affect on aggregate demand The short run tradeoff between Chapter 35 Implications of expansionary fiscal and monetary 24. inflation and unemployment policies for aggregate demand and role of automatic stabilizers Inflation, deflation, and disinflation Chapter 35 Evaluation of current vocabulary on inflation; key 25. differences between these terms. Which one is approapriate during recession Pakistan Economy To be provided Evaluation of current state of Pakistan economy. 26. Problems faced by Pakistan economy and different approaches to reduce such problems. 27. Review Session
TEXTBOOK(S)/SUPPLEMENTARY READINGS Principles of Economics by Gregory Mankiw. 8th Edition. Cengage Learning. 2018. Suggested Readings and Websites Farmer, R (2010). How the economy works. Oxford University Press. Diane Coyle (2014) GDP: A brief but affectionate history. Princeton University Press. SBP Annual and quarterly Reports. Available at www.sbp.org.pk Business Recorder newspaper (https://www.brecorder.com/ )