AGEC-6509 (MACROECONOMICS – II)

                                                  DESCRIPTION AND OBJECTIVES

The course covers models of aggregate income determination in open economies; theories of aggregate economic behavior with respect to consumption, investment expenditures, and financial transactions; balance of payments and exchange rate analysis; theories of inflation and unemployment; introductory dynamic analysis. The course leads on from the first year macroeconomics course and provides a smooth transition for those intending to pursue macroeconomics in later years

                                              INTENDED LEARNING OUTCOMES

After completing the course, students will have understandings of major macroeconomic models.

                                                             COURSE CONTENTS

Aggregate demand and Aggregate Supply patterns: Changes in AD and AS, equilibrium and dynamics of equilibrium in short run and long run. Money and Banking: functions of money, the components of money supply, Money definitions M1, M2, M3, Banking system, historical background and functions of different banks, commercial banks, and central bank. The IS-LM Model, equilibrium in the labour market, goods market and money market, Factors affecting IS and LM curves. General equilibrium in the complete model. The phenomenon of Phillips curve, The Okun’s law, introduction to macroeconomic policies, Monetary and fiscal policies, Labour and wage policies, international policy; International trade, balance of payments and causes of disequilibrium. 

                                                                          READINGS

Recommended Books

  1. McConnel, C.R., Brue, S.L., & Flynn, S.M. (2011). Economics: Principles, Problems and Policies 19th Edition. New York: McGraw-Hills.

Suggested Books

  1. Dornbusch R, S. Fischer and R. Startz (2008) Macroeconomics, 10th Edition, McGraw-Hill.
  2. Shapiro E. (2003). Macroeconomic Analysis, 5th Edition. Harcourt Brace publisher.
  3. Abel, B. Andrew & Ben S. Bernanke. (2005). "Macroeconomics" 6th edition. Mcgraw Hill Inc.

                                                              COURSE SCHEDULE

        Week

                Topics and Readings

             Books with Page No.

1

Aggregate demand and Aggregate Supply patterns: Changes in AD and AS, equilibrium and dynamics of equilibrium in short run and long run.

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

Dornbusch, Fischer and Startz (2008) Macroeconomics, 10th Edition.

2

Aggregate demand and Aggregate Supply patterns: Changes in AD and AS, equilibrium and dynamics of equilibrium in short run and long run.

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

Page no: 698-709

Dornbusch, Fischer and Startz (2008) Macroeconomics, 10th Edition.

3

Fiscal Policy, Deficit and Debt

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

4

Fiscal Policy, Deficit and Debt

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

Page no: 723-731

Dornbusch, Fischer and Startz (2008) Macroeconomics, 10th Edition.

5

Money and Banking

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

 

6

Functions of money, the components of money supply, Money definitions M1, M2, M3, Banking system, historical background and functions of different banks, commercial banks, and central bank.

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

 

7

Functions of money, the components of money supply, Money definitions M1, M2, M3, Banking system, historical background and functions of different banks, commercial banks, and central bank.

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

 

8

Money Creation

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

 

9

Money Creation

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

 

10

Money Creation

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

 

11

Interest Rates and Monetary Policy

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

 

12

Interest Rates and Monetary Policy

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

 

13

Interest Rates and Monetary Policy

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2013). Economics: Principles, Problems and Policies 19th Edition.

 

14

Aggregate Supply: Extending the Analysis

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2011). Economics: Principles, Problems and Policies 19th Edition.

 

 

15

Aggregate Supply: Extending the Analysis

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2011). Economics: Principles, Problems and Policies 19th Edition.

16

Aggregate Supply: Extending the Analysis

McConnel, C.R., Brue, S.L., & Flynn, S.M. (2011). Economics: Principles, Problems and Policies 19th Edition.

 

 

                              RESEARCH PROJECT/PRACTICAL/LABS/ASSIGNMENTS
  • Presentations on different selected topics of macroeconomics.

 

                                                                ASSESSMENT CRITERIA
  • Sessional:                        12 (Presentation: 6, Quiz: 6)
  • Mid Term Test:               18
  • Final Term Test:             30

Course Material

Other Courses by Muazzam Sabir