1. Name of Course : Macroeconomics 12. Course Code : BT117033. Name(s) of academic staff: Assoc Prof. Datuk Dr Kassim Md Mansur (Section 1)

Mr Wijaya Kamal Ramlan (Section 2)4. Rationale for the inclusion of the course/module in the programme:

1. Provides an overview of the principles essential for understanding the macroeconomics problem, specific macroeconomics issues, and policy alternatives.

2. Understand and apply the macroeconomics perspective and reason accurately and objectively about economic matters.

5. Semester and Year offered: Sem 1 Session 2015/2016 (Year 2)6. Total Student

Learning Time (SLT)

Face to Face Total Guided and Independent Learning

L = LectureT = TutorialP = PracticalO= Others

L T P O See Appendix

7. Credit Value: 38. Prerequisite (if any): -9. Learning outcomes:

At the end of the course, student will be able to:1. define and describe the fundamental concepts and theories of macroeconomics.

[PLO1][C1]2. explain the effects of government policies such as price floor, price ceilings and tax

on the market outcome. [PLO1][C1]3. calculate and explain the measurements of Gross Domestic Products and its four

components, GDP deflator, the consumer price index and inflation. [PLO1][C1]4. identify and explain the differences between real and nominal variables such as GDP,

Interest Rates and exchange rates. [PLO1] [PLO3] [C2][CTPS]5. relate the knowledge of macroeconomics to the economic issues, analyze, build new

ideas of, and evaluate the economic issues. [PLO1] [PLO3][C2] [CTPS] 6. communicate and work in team effectively for the discussion held and for completing

the group assignments and group tutorial assignments given. [PLO1] [PLO3] [PLO4][C1] [CS] [CTPS]

10. Transferable Skills:

Problem solving skillsPractical skillsCommunication skills

11. Teaching-learning and assessment strategy:

Lecture, tutorial questions/assignments, group assignments, presentation, mid-term exam, and final exam.

1

12. Synopsis:

This course provides introductory materials for macroeconomics. The syllabus is focuses on applications and policy while explaining the formal economic theory. The first three chapters introduce students to the economist’s view of the world, the role of assumptions in developing theory or model and the role of economist in making policy. The coverage of the macroeconomics includes how to measure national income, cost of living, and the behaviour of the real economy, money and prices in the long run. The last few chapters present the macroeconomics of open economies, maintaining the long run assumptions of price flexibility and full employment.

13. Mode of Delivery:

Lecture & tutorial.

14. Assessment Methods and Types:

The assessment for this course will be based on the following:Component WeightQuiz 10%Tutorial 10%Group Assignment 20%Mid-term examination 20%Final examination 40%Total 100%

All components of the above assessment are compulsory and must be completed before the stipulated deadline.

15. Mapping of the course/module to the Programme Aims:

Refer to attached Program Summary Matrix

16. Mapping of the course/module to the Programme Learning Outcomes:

Refer to attached Program Summary Matrix

2

17.

Content outline of the course/module and the SLT per topic. (See Appendix)

INTRODUCTION TO ECONOMICS Ten Principles of Economics in how people make decisions, how people interact and

how the economy as a whole works

THINKING LIKE AN ECONOMIST The Role Of Assumption The Circular-Flow Diagram The Production Possibilities Frontiers Positive Vs. Normative Statement

SUPPLY, DEMAND AND GOVERNMENT POLICIES Controls On Prices Price Ceilings And Price Floor Taxes On Buyers And Sellers Elasticity And Tax Incidence

MEASURING A NATION’S INCOME The Economy’s Income And Expenditure The Measurement Of Gross Domestic Product The Components Of GDP Real Versus Nominal GDP

MEASURING THE COST OF LIVING The Consumer Price Index Correcting Economics Variables for the Effects of Inflation

PRODUCTION AND GROWTH Economic Growth Around The World Productivity: Its Role And Determinants Economic Growth And Public Policy The Importance Of Long-Run Growth

SAVING, INVESTMENT AND THE FINANCIAL SYSTEM Saving And Investment The Market For Loanable Funds

UNEMPLOYMENT Identifying Unemployment Job Search Minimum-Wage Laws Unions And Collective Bargaining The Theory Of Efficiency Wages

THE MONETARY SYSTEM The Meaning of Money The Central Bank Banks and the Money Supply

3

THEORY OF THE OPEN ECONOMY Supply and Demand for Loanable Funds and Foreign-Currency Exchange Equilibrium in the Open Economy How Policies and Events Affect an Open Economy

AGGREGATE DEMAND AND AGGREGATE SUPPLY Three Key Facts about Economic Fluctuations Explaining Short-Run Economic Fluctuations The Aggregate-Demand Curve The Aggregate-Supply Curve Two Causes of Economic Fluctuations

THE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND How Monetary Policy Influences Aggregate Demand How Fiscal Policy Influences Aggregate Demand

4

OPEN-ECONOMY: BASIC CONCEPTS AND THE MACROECONOMIC THEORY The International Flows of Good and Capital Real and Nominal exchange Rates Purchasing Power Parity Supply and Demand for Loanable Funds and for Foreign-Currency Exchange Equilibrium in the Open Economy How Policies and Events Affect an Open Economy THEORY OF THE OPEN ECONOMY

Supply and Demand for Loanable Funds and Foreign-Currency Exchange Equilibrium in the Open Economy How Policies and Events Affect an Open Economy

AGGREGATE DEMAND AND AGGREGATE SUPPLY Three Key Facts about Economic Fluctuations Explaining Short-Run Economic Fluctuations The Aggregate-Demand Curve The Aggregate-Supply Curve Two Causes of Economic Fluctuations

THE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND How Monetary Policy Influences Aggregate Demand How Fiscal Policy Influences Aggregate Demand

18.

Textbooks and references:

Backhouse, Roger. E., and Steven, G. Medema. 2009. "Retrospectives: On the Definition of Economics." Journal of Economic Perspectives, 23(1): 221-33.

Baumol, W. J., & Blinder, A. S. 2012. Macroeconomics: Principles and Policy (International Edition). Cengage Learning Asia Pte Ltd.

Krugman, P. & Wells, R. 2012. Macroeconomics. Worth Publishers.Mankiw, N. Gregory., Goh, S. K., Ong, H. B., Yen, S. H., Cheng, M. Yu., Muzafarshah

Mohd Mustafa., & Yvonne, L. L. E. 2013. Principles of Macroeconomics: Malaysia Edition. Petaling Jaya, Malaysia: Cengage Learning Asia Pte Ltd. (Main References)

McConnell, C., Brue, S., & Flynn, S. 2011. Macroeconomics. McGraw-Hill/Irwin.Ricardo, F., Crespo. 2011. Two Conceptions Of Economics. Journal of Applied Economics. 14:2,

181-197.

19.

Other additional information: Submission of assignment will be in week 10. Any late submission will be penalized. Mid-term exam will be held after mid semester break (Week 8). More details are available at SMART UMS 2 http://smart2.ums.edu.my. Macroeconomics 1/2015/2016 Course Assessment should be done in week 10 through SMP website. Beginning semester 1-

2010/2011, Course Assessment (PK07) can be accessed via Sistem Maklumat Pelajar http://smp.ums.edu.my.

5