Introduction

The objective of the course is to clarify and extend further the concepts of macroeconomics so as they develop the capacity to understand the issues and problems of the economy in a global scenario. In particular, they have to capture the nature and scope of various public policies. In addition to diagrammatic approach, the students are confronted to simple mathematical and numerical analysis. 

Learning Outcomes

The course contents of the subject serve following objectives:

• Understand that economics is about the allocation of scarce resources, that scarcity forces choice, tradeoffs exist and that every choice has an opportunity cost. Be able to demonstrate these concepts using a production possibility frontier diagram.
• Understand how comparative advantage provides the basis for gains through trade.
• List the determinants of the demand and supply for a good in a competitive market and explain how that demand and supply together determine equilibrium price.
• Understand the causes and effects of inflation and unemployment.
• Describe the macro economy using aggregate demand and aggregate supply analysis.
• Demonstrate an understanding of monetary and fiscal policy options as they relate to economic stabilization in the short run and in the long run.

Readings

1. Shapiro, Edward – Macroeconomic Analysis- 7th Edition (2000) – Harcourt Brace Inc.
2. Froyen, Richard–Macroeconomics: Theories and Policies–7th Edition (2002) – Macmillan.
3. Mankiw, Gregory N.- Macroeconomics -6th Edition (2007), Worth Publishers, NY.
4. Blanchard, Oliver – Macroeconomics -2nd Edition (2000)-Prentice Hall International.
5. Dornbusch & Fisher – Macroeconomics- 9th Edition (2004) - McGraw Hill Inc.
6. Pakistan Economic Survey (latest), Annual reports of the State Bank of Pakistan, Federal and Provincial Budgets (latest).

Assesment Criteria

• Mid Term Exam: 30 Marks
• Final Term Exam: 50  Marks
• Sessional: 20 Marks
  • Project: 50%
  • Presention: 30%
  • Class Participation: 20%