INSTITUTE OF BUSINESS AND MANAGEMENT SCIENCESTHE UNIVERSITY OF AGRICULTURE - PESHAWAR

Programme : BBA (Hons) 3rd Course Name : Macro Economics Course Code : BBA-402Credit Hours : 03Total Weeks : 16Total Hours : 48

COURSE CONTENT

Week 01,02KEY CONCEPTS OF MACROECONOMICS Objectives and instruments of macroeconomics. Tools of macroeconomics policy. Aggregate demand and supply.

Week 03,04MEASURING ECONOMIC ACTIVITY. Concepts of National Income. Measurement of National Income. GDP, NDP, GNP & NNP, Personal Income & Disposable Personal Income GDP Deflator and a real GDP National Income as a measure of economic welfare

Week 05,06CONSUMPTION AND INVESTMENT. Consumption, Income and saving. Consumption Function. Saving Function. The Marginal Propensity to Consume and Average Propensity to consume The Marginal Propensity to Save and Average Propensity to save Determinants of Consumption Determinants of Investment (Rate of interest, MEC)

Week 07,INCOME AND EMPLOYMENT DETERMINATION Classical approach. Modern approach (Keynesian) Post Keynesian Approach

Week 08,MULTIPLIER AND ACCELERATOR Investment Multiplier. Tax multiplier, foreign trade multiplier and super multiplier.

Week 09FISCAL AND MONETARY POLICIES Fiscal Policy Monetary Policy

Week 10,INFLATION Nature and kinds. Inflationary and deflationary gaps. Inflation and unemployment.

Week 11BUSINESS CYCLE The concept of Business Cycle Business Cycle Theories Business Cycle & Business Decision Making

Week 12,13INTERNATIONAL TRADE Classical theory of International trade (CIT) Modern theory of International trade (H-O-Theorem) Economic Integration and Regional Cooperation. Protection and free trade. WTO (Objectives and role)

Week 14BALANCE OF PAYMENTS Balance of Payments Accounts. Disequilibrium & Imbalance of Payments. Causes and Remedies.

Week 15 Project/Revision

TEXT/REFERENCE BOOKS1. Dornbusch and Fischer Macroeconomics, McGraw Hill, New York. (Latest Edition)2. Mc Connell & Brue, Economic, Mc Graw Hill, INC (Latest Edition)3. Muhammad Hussain Choudhry, Economic Theory Volume 2, Caravan Book House, Lahore 2002.4. Ruffin & Gregory, Principles of Economics, Scott, Foresman & Company.5. Samuelson and Nordhaus, Economics, McGraw Hill, New York. (Latest Edition)