FACULTY OF BUSINESS MANAGEMENT

UNIVERSITI TEKNOLOGI MARA

MACROECONOMICS (ECO211)

LESSON PLAN OCT MARCH – AUGUST 2022

LECTURER NAME : MRS. NIK SURIATI NIK HASSAN

ROOM NO : D337
PHONE NO : 017-9715249

Code : ECO211

Course : Macroeconomics

Level : Diploma

Credit Unit : 3

Contact Hour : 3

Course Status : Core

Prerequisite : None

Course Learning Outcomes:

At the end of the course, students should be able to:

1) Explain the macroeconomics principles and concepts and theories (C3)

2) Elaborate and relate macroeconomics fundamental and indicators with the current situation
(A3)
3) Apply appropriate measures to solve macroeconomics problem (A2)

Course Description:

The course discusses the principles and concepts in macroeconomics, such as national income
accounting, determination of national income equilibrium, macroeconomics problems and policies
and international economics. In addition, the course also encompasses the application of
concepts and principles of macroeconomics in analyzing economic issues. Students will also be
exposed to Islamic economics wherever applicable.
 Course
No. Topics Hours Assessment Tools Notes
Outcome
1.0 Introduction to Macroeconomics
2 CO1 Online Test
1.1 Introduction to macroeconomics Final Assessment
1.1.1 Definition of macroeconomics WEEK 1 (2 hours)
1.1.2 Difference between macroeconomics and
microeconomics
1.2 Objectives of macroeconomics (conventional and Islamic)
1.2.1 Objective macroeconomics in conventional perspective
1.2.2 Objective macroeconomics in Islamic perspective

2.0 Measuring National Income and Output

7 CO1 Online Test
2.1 Concepts in national income CO2 Final Assessment
2.2 Circular flow of income in a 2, 3, and 4- sector economy WEEK 1 (1 hour) CO3
2.3 Three approaches of measuring national income: WEEK 2 (3 hours)
2.3.1 Income approach WEEK 3 (3 hours)
2.3.2 Expenditure approach
2.3.3 Output approach
2.4 Concepts and measuring personal income, disposable
income, per capita income, nominal and real income
2.5 Uses of national income statistic
2.6 Problems in measuring national income

3.0 Determination of National Income Equilibrium

9 CO1 Online Test
3.1 Two approaches in determine national income equilibrium CO2 Final Assessment
3.1.1 AD=AS approach WEEK 4 (3 hours) CO3
3.1.2 Injection=Leakages approach WEEK 5 (3hours)
3.2 Consumption theory: Conventional Autonomous and induced WEEK 6 (3 hours)
consumption
3.3 Islamic consumption theory: Fahim Khan Islamic consumption
3.4 Investment theory conventional perspective Autonomous and
induced investment
3.5 Calculation Income equilibrium in a 2, 3, and 4-sector
economy
3.6 Expenditure multiplier and tax multiplier
3.7 Inflationary gap and deflationary gap

WEEK 6 – ONLINE TEST (CHAPTER 1 – CHAPTER 3)

 WEEK 7 – SHARING OF QUESTION FOR GROUP ASSIGNMENTS
4.0 Money, Banking & the Financial System
6 CO1 Online Presentation
4.1 Definition, characteristics and functions of money CO2 Final Assessment
4.2 Supply of money (M1, M2, & M3) WEEK 7 (3 hours) CO3
4.3 Keynesian Demand for money (transaction, precautionary, WEEK 8 (3 hours)
and speculative motives)
4.4 Money market equilibrium
4.5 Functions of Central bank and monetary policy (types and
tools)
4.6 Function of Commercial banks and credit creation process
4.7 Islamic banking products (al-wadiah, al-mudharabah, al-bai
bithaman ajil, al- musyarakah and al-ijarah)

5.0 Public Finance

4 CO1 Online Presentation
5.1 Concepts of public finance CO3 Final Assessment
5.2 Sources of conventional government revenue (tax and non-tax WEEK 9 (3 hours)
revenue) and expenditure WEEK 10 (1 hour)
5.3 Types of government expenditure: operating and development
5.4 Types of tax structure
5.5 Types of government budget (deficit, surplus, and balanced
budget)
5.6 Fiscal policy (types and tools)
5.7 Public finance in Islam
5.8 Sources of Islamic government revenue (zakat, wakaf, kharaj,
ushr, jizyah, fai,ghanimah) and types of expenditure

WEEK 12 – WRITTEN REPORT SUBMISSION

WEEK 12 – ONLINE PRESENTATION
6.0 Macroeconomic Problems
6 CO1 Written Report
6.1 Inflation CO3 Final Assessment
6.1.1 Definition WEEK 10 (2 hours)
6.1.2 Calculation of inflation rate WEEK 11 (3 hours)
6.1.3 Two types of inflation WEEK 12 (1 hour)
6.1.3.1 Demand pull inflation
6.1.3.2 Cost push inflation
6.1.4 Effects of inflation
6.1.5 Measures to control inflation (monetary policy, fiscal
policy, and direct control)
 6.2 Unemployment
6.2.1 Definition
6.2.2 Calculation of unemployment rate
6.2.3 Types of unemployment
6.2.4 Effects of unemployment
6.2.5 Measures to control unemployment (monetary policy,
fiscal policy, and direct control)

7.0 International Economics

8 CO1 Online Presentation
7.1 International trade CO2 Final Assessment
7.1.1 Definition of international trade WEEK 12 (2 hours) CO3
7.1.2 Reasons for trade WEEK 13 (3 hours)
7.1.3 Concepts and applications of absolute and comparative WEEK 14 (3 hours)
advantages
7.1.4 Advantages and disadvantages from trade
7.2 Protectionism:
7.2.1 Arguments
7.2.2 Tools
7.3 Balance of payments (BOP)
7.3.1 Definition
7.3.2 Structures and calculations of BOP (Current BOP of
Malaysia)
7.3.3 Effects of BOP deficit
7.3.4 Measures to reduce BOP deficit
7.4 Exchange rate
7.4.1 Definition
7.4.2 Fixed and flexible/floating exchange rate systems

FINAL ASSESSMENT (CHAPTER 1 – CHAPTER 7)

Teaching Methodology

 Discussion
 Lectures
 Tutorial

Assessment

Online Test 20%

Group Assignments:
Written Report 20%
Online Presentation 20%
Final Examination 40%

TOTAL 100%

Recommended Text

Nabila Ahmad, Zulkhairi Nisa, Irlisuhayu Mohd Ramli, Rosmaiza Abd Ghani, Essentials of Economics,
1, McGraw Hill Education (Malaysia) Sdn Bhd, 2021, ISBN: 9789670761541

ESSENTIALS OF ECONOMICS

https://shopee.com.my/product/40209101/11956969010?smtt=0.40210487-1633672505.9

References

Begg. D, Fischer. S and Dornbusch. R., Economics, 2004, Mc Graw Hill.

John Sloman, Economics (6th Ed.), 2006, Prentice Hall, Edinburgh.

Muhammad Abdul Mannan, The Making of Islamic Economic Society, 1984.

Muhammad Abdul Mannan, Islamic Economics: Theory and Practice, 1989.

Tucker, Irvin B., Economics for Today, 5, South-Western College Publishing, 2008.