Shahjalal University of Science & Technology

Course Profile

Course: ECO 102

Course Title: Principles of Macroeconomics
Credit: 4 (weekly contact hour 4)
Level: Undergraduate B.B.A.(Honors) 2nd Year 1st Semester Academic Session: 2014-15
Class Schedule: Monday 1p.m.-3p.m. and Thursday 12p.m.-2p.m.

Instructor: Amit Roy, Assistant Professor-Department of Economics

Office: D Building, 4th Floor, Room no.4005; Email: amit-eco@sust.edu

Course Introduction and Objectives

Welcome! This course will provide concise and comprehensive theoretical and empirical knowledge about
macroeconomics. It will cover brief history of the emergence of macroeconomics, constitution of
macroeconomics, key indicators of macroeconomic performance and methods of measuring them;
macroeconomic problems and their remedial policies and policy instruments.

Course Outline

Chapter 1: Introduction to Macroeconomics

Emergence of macroeconomics; the circular flow model of macroeconomy; key macroeconomic
performance indicators; objectives and policies of macroeconomics.

Chapter 2. Determination of National Income

National product and income accounts: GDP-concept and measurement; GNP vs. GDP; NI and personal
disposable income; nominal vs. real GDP; business cycle; components of aggregate demand and planned
spending; equilibrium output and the multiplier; changes in equilibrium output; the paradox of thrift.

Chapter 3: Macroeconomic Equilibrium

Aggregate demand (AD) curve and aggregate supply (AS) curve and Macroeconomic Equilibrium.

Chapter 4: Inflation and Unemployment

Definition, measurements, types, causes and costs of inflation; definition, measurements and types of
unemployment, remedial measures; Phillips curves.

Chapter 5: Money
Definition and functions of money; theories of money demand; money supply and the price level: velocity
and quantity equation.

Chapter 6: Banking and Monetary Policy

Commercial banks and multiple deposit creation; money multiplier; central banking and monetary policy.

Chapter 7: Fiscal Policy

Objectives and types of fiscal policy; budget; taxes and government expenditure.

Chapter 8: Open-economy Macroeconomics

Concepts of balance of payments and exchange rate; international trade theories of absolute and
comparative advantage; terms of trade.

Learning Resources
1. Andrew B. Abel, Ben S. Bernanke and Dean Crushore (2009): Macroeconomics, 9th Edition.
2. Dornbusch, Rudiger et al (2011): Macroeconomics, McGraw-Hill International, 11th Edition.
3. Frederic S. Mishkin (2012), Macroeconomics, Pearson Education, 2nd Edition.
4. Karl Case, Ray Fair, Sharon Oster (2012), Principles of Macroeconomics, Pearson, 10th Edition.
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5. Mankiw, N G (2016): Principles of Economics, Thomson South Western Publishing, 9th Edition.
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6. Samuelson, P A and W D Nordhaus (2009): Economics, McGraw-Hill USA, 19th Edition.

Approach to learning:
In this course, considerable emphasis will be placed on active learning. In other words, you are expected to
learn by trying to work through participation, rather than simply passively sitting in lectures. This approach
will be reflected in the relationship among the lectures, class discussion, in-class presentation and home-
tasks/assignments. Multiple textbooks will be followed with references. You can find them in the
university library or online. Lectures will be handed out.

Course Instructions
1. There will be at least eight weeks of classes and each week will carry four hours of classes.
2. Each week will try to cover a chapter.
3. Each hour of class will cover 1 attendance.
4. Class participation and discussion are encouraged.
5. There will be at least two term-exams of 20 marks having 50 minutes of duration.
6. Term schedule: First Term-exam: 23 March 2017 (Thursday) during class hour
Second Term-exam: 15 May 2017 (Monday) during class hour
7. There will be no makeup term-exam. However, assignment cum presentation may substitute one
term-exam only for valid medical /family reasons supported by proper documents.

Course Evaluation
Final grade of this course will be evaluated as follows:
Attendance: 10%
Term Exam/ Assignment/Presentation: 20%
Final Exam: 70%
Chapter Teaching Strategy Assessment Strategy
Board Multimedia Term Assignment/ Final
Lecture Lecture Test Presentation Examination
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Academic Integrity
Turn off and do not use your cell phone and other devices except calculator during classes/midterm/final
exam. You are expected to complete assignments on time. Late submission of term paper and assignments
are subject to a point penalty. Persons found with copying/cheating/misbehaving during
classes/midterm/final exam will be treated according to the university rule.

Disclaimer
While every effort is made to ensure that the information contained in these instructions is accurate, it is
subject to change. Changes will be notified in class. It is the students responsibility to be informed. For
any queries regarding the course, feel free to contact me.

Course and Teaching Evaluations

At the end of the semester, students will have the opportunity to submit an evaluation of the course in a
formative feedback questionnaire.

=Good Luck=
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