Faculty of Business and Management

Universiti Teknologi MARA

SCHEME OF WORK

PROGRAMME Diploma

COURSE Macroeconomics

COURSE CODE ECO211

CREDIT HOUR 3
SEMESTER 3

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 OUTCOME
At the end of the course, students should be able to:
1. Explain the macroeconomics principles and concepts and theories ( C2 )
2. Elaborate and relate macroeconomics fundamental and indicators with the current
situation ( C3 )
3. Apply appropriate measures to solve macroeconomics problem ( A3 )

TEACHING METHOD:

• Discussion
• Lectures
• Tutorial

COURSE EVALUATION :

Course Work Percentage

1. Test (Mid Term Test) 20%

2. Presentation 20%
3. Written Report 20%

Final examination 40%

Total Marks 100%

ECO211/FPP/UiTMCTKD
REFERENCES

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

ECO211/FPP/UiTMCTKD
LESSON PLAN

WEEK TOPICS CLASS ACTIVITY

1 Chapter 1: Introduction to Macroeconomics • Discussion BLOK 1

17 – 21 • Lectures LECTURE I (17 MAC – 6
MAC 2024 1.1 Introduction to macroeconomics • Tutorial APR 2024) ONLINE
1.1.1 Definition of macroeconomics
1.1.2 Difference between macroeconomics (14 APR -2 MAY 2024)
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 Chapter 2: Measuring National Income and • Discussion

24 – 28 Output • Lectures
MAC 2024 • Tutorial
2.1 Concepts in national income
2.2 Circular flow of income in a 2, 3, and 4- sector
economy
2.3 Three approaches of measuring national
income:
2.3.1 Income approach (not to be tested in
final examination)
2.3.2 Expenditure approach
2.3.3 Output approach

3 Chapter 2: Measuring National Income and • Discussion

31 MAC – Output • Lectures
04 APR 2024 • Tutorial
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

CUTI KHAS PERAYAAN (AIDILFITRI) (7 – 13 APR 2024)

4 Chapter 3: Determination of National Income • Discussion
14 – 18 APR Equilibrium • Lectures
2024 • Tutorial
3.1 Two approaches in determine national income
equilibrium
3.1.1 AD=AS approach
3.1.2 Injection=Leakages approach
3.2 Consumption theory: Conventional
Autonomous and induced consumption

ECO211/FPP/UiTMCTKD
 WEEK TOPICS CLASS ACTIVITY

5 Chapter 3: Determination of National Income • Discussion

21– 25 APR Equilibrium • Lectures
2024 • Tutorial
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 (autonomous taxes only)

6 Chapter 3: Determination of National Income

28 APR – 02 Equilibrium
MAY 2024
3.6 Expenditure multiplier and tax multiplier
1 MAY CUTI 3.7 Inflationary gap and deflationary gap
HARI
PEKERJA

7 Chapter 4: Money, Banking & the Financial • Discussion BLOK 2

05- 09 MAY System • Lectures LECTURE II
2024 • Tutorial (5 MAY – 13 JUNE 2024)
4.1 Definition, characteristics and functions of
money MIDTERM TEST
4.2 Supply of money (M1, M2, & M3) TOPICS TO
4.3 Keynesian Demand for money (transaction, COVER (1-3)
precautionary, and speculative motives)
4.4 Money market equilibrium

8 Chapter 4: Money, Banking & the Financial • Discussion

12 – 16 MAY System • Lectures
2024 • Tutorial
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)

9 Chapter 5: Public Finance • Discussion

19- 23 MAY • Lectures
2024 5.1 Concepts of public finance • Tutorial
5.2 Sources of conventional government revenue
22 MAY (tax and non-tax revenue) and expenditure
WESAK DAY
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)

ECO211/FPP/UiTMCTKD
 WEEK TOPICS CLASS ACTIVITY

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

MID TERM BREAK & HARI GAWAI (26 MAY – 2 JUNE 2024)
10 Chapter 6: Macroeconomic Problems • Discussion
04 – 06 JUNE • Lectures
2024 6.1 Inflation • Tutorial

3 JUNE 6.1.1 Definition GROUP

CUTI HARI
6.1.2 Calculation of inflation rate PRESENTATION
KEPUTERAA
(SPI and WPI not include)
N AGONG
6.1.3 Two types of inflation
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)

11 Chapter 6: Macroeconomic Problems • Discussion

09- 13 JUNE • Lectures
2024 6.2 Unemployment • Tutorial

6.2.1 Definition GROUP

6.2.2 Calculation of unemployment rate PRESENTATION
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)

HARI RAYA AIDILADHA (14 – 18 JUNE 2024)

12 Chapter 7: International Economics • Discussion BLOK 3

19 - 20 JUNE • Lectures LECTURE III
2024 7.1 International trade • Tutorial (19JUNE – 4 JUL 2024)
7.1.1 Definition of international trade
7.1.2 Reasons for trade
7.1.3 Concepts and applications of absolute
and comparative advantages
7.1.4 Advantages and disadvantages from
trade
7.2 Protectionism:
7.2.1 Arguments
7.2.2 Tools

ECO211/FPP/UiTMCTKD
 WEEK TOPICS CLASS ACTIVITY

13 Chapter 7: International Economics • Discussion

23 - 27 JUNE • Lectures
2024 7.3 Balance of payments (BOP) • Tutorial
7.3.1 Definition
7.3.2 Structures and calculations of BOP
(Current BOP of Malaysia)
14 Chapter 7: International Economics • Discussion
01 -04 JULY • Lectures
2024 7.3.3 Effects of BOP deficit • Tutorial
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
REVISION WEEK (08 – 14 JULY 2024)
EXAMINATION (15 JULY – 1 AUG 2024)

TOPICS COVER
MCQ (1-7)
SHORT STRUCTURED (4-7)
ESSAY (4-7)

ECO211/FPP/UiTMCTKD