LAHORE SCHOOL OF ECONOMICS

Economic Growth (ECO 406)

Program BSC IV Spring 2024 Sections A & B

Credit Hours 3 CHs

Duration 16 Weeks

Prerequisites It is assumed that everyone attending this class has a good grasp of basic and
intermediate macroeconomics.

Resource Person Dr. Moazam Mahmood

Class timings Section A
Monday: 10:15 am – 11:45 am
Wednesday: 10:15 am – 11:45 am

Section B
Tuesday: 10:15 am – 11:45 am
Thursday: 10:15 am – 11:45 am
Office & Ext. J-3, Room D, Ext #216

Office Hours Tuesday & Thursday : 03:00PM - 04:00 PM

Dr. Moazam Mahmood | ECO (406) 1

 E-mail moazam@lahoreschool.edu.pk

Co-Instructor Seemab Sajid

seemab.sajid@lahoreschool.edu.pk
Teaching Assistant Muzzna Maqsood
muzzna181@gmail.com

Course: Economic Growth

BSC IV (22rd January –25th May) Spring 2024

SYLLABUS

i. The Global Economy, the Global Recession, and the global pandemic, – quantum estimation and
introduction to analytics
ii. Defining General Equilibrium, Partial Equilibrium, and their need in analysing Global
Macroeconomics: through agent behavior determining macro aggregates and prices
iii. Macro General Equilibrium models of global economy: giving alternative explanations of
disequilibrium and equilibrium, and business cycles in the macro economy
iv. A useful framework for analysis of the macro economy and macro policy options: the ISLM
model in a closed economy
v. The ISLM model in an open economy, with flexible exchange rates
vi. The ISLM model in an open economy, with fixed exchange rates, and incorporating inflationary
expectations and risk
vii. Partial and General Equilibrium: An introduction to modelling the labour market and embedding
in a GE model: Keynes vs Pigou
viii. Macro policy options and tools for generating output and employment - From linearities to non
linearities
ix. Modelling the global macro economy using the DESA model, and incorporating the labour
market using the Frankenstein model
x. Policy simulation exercises using a Global Policy Model
xi. The macro drivers of global poverty reduction and welfare to meet the SDGs: some newer
welfare theorems
xii. Modeling lab- theoretical model for Pakistan
xiii. Introducing linear algebra and Python
xiv. Simulating aggregate demand

Dr. Moazam Mahmood | ECO (406) 2

Course Description & Objectives
This course is taught in the fourth year of B. Sc. (Honors) with double majors in Economics and
Finance exposing the students to the current global issues relating to growth and development. The
course will be taught in two modules, one on growth and one on macro modelling. The first module
leads with an analysis of the global macroeconomic determinants of growth including key
macroeconomic variables from the real economy like employment, investment, wages and worker
productivity, and price variables like interest rate, inflation and exchange rate. The second module is a
modeling lab, primarily focusing on familiarizing the students with mathematical modeling of
theoretical models taught in the first half of the course using Python. The analytical ability of the
students is expected to be enhanced by introducing simple and moving to more complex models in order
to derive responsible policy for macro management, using not only theory but also teaching students
how to solve the macroeconomic models themselves in the modeling lab. At the end of the course,
students will be expected to be knowledgeable in terms of analysis and policy diagnostics of key global
macro issues.

Teaching Strategy
The course will be taught in two modules, one on growth and one on macro modelling. The first
module leads with an analysis of the global macroeconomic determinants of growth including several
macroeconomic factors such as employment, investment, real wages, worker productivity. The second
module is a modeling lab, primarily focusing on familiarizing the students with mathematical modeling
of theoretical models taught in the first half of the course using Python. The class lecture will be divided
into two segments where in the first hour, the lecture will be delivered whereas in the next thirty minutes
the students will be asked to present on the relevant readings of that particular week.

Student Portal:
Assignments and reading material will be uploaded on the student portal: student.lahoreschool.edu.pk

Exams:
Mid-term exam (20%) in the middle of semester and a final exam (35%) at the end of the
semester. All lectures will be included in final exam.
Attendance Policy:
In order to maximize learning in this course, attendance is emphasized. The lecture will involve
real-world examples and interactive discussions which cannot be covered in the text
Your attendance is required to understand the material that is to be covered. You may be allowed five
(5) unexcused absences. Each unexcused absence over 5 will be sufficient reason for reducing your final
grade. (5 points for attendance). Lastly, if a student is absent for more than 8 classes in the course, then
the student will be dropped from the course and given an I (incomplete) grade in the course.

Dr. Moazam Mahmood | ECO (406) 3

Problem Sets/Assignments:
There will be weekly assignments for you to solve throughout the semester. You are encouraged
to work on these assignments in groups of 5 to 8 people but everyone must turn in their own copy of the
answers. I will randomly mark one assignment per group and assign points to all members. Those group
members who don’t hand in a separate assignment will not receive any points. Assignments are to be
submitted at the beginning of class on the day they are due. I will not accept any late assignments. You
must identify your group by the end of the first week of classes. If you cannot find a group, you will be
randomly assigned one.

Dr. Moazam Mahmood | ECO (406) 4

Course Learning Objectives

The course has been designed to achieve the following objectives:

CLO 1: To understand the meaning of key macroeconomic variables
CLO 2: To learn about the working of the global economy with the help of quantum estimation
and different analytical tools
CLO 3: To learn about different policy objectives and policy instruments to help understand
agent behavior determining macro aggregates and prices.
CLO 4: To be able to understand the working of the Macro General Equilibrium models of
global economy.
CLO 5: To be able to understand the global macroeconomic determinants of growth including
key macroeconomic variables from the real economy like employment, investment, wages and
worker productivity, and price variables like interest rate, inflation and exchange rate.
CLO 6: To learn about the various challenges that arise in economic applications and how to deal
with them
CLO 7: To learn how to use Python for simulating the aggregate demand and long run growth
rates for Pakistan using the Macroeconomic General Equilibrium Model.

Program Learning Objectives

PLO 1. To produce graduates with advanced knowledge and in depth understanding of the
theories, principles and analytical techniques to tackle issues in economic and business
policy. To enable graduates to have sufficient hand varied knowledge base to respond to
the dynamics of business practices labor markets worldwide.
PLO 2. To produce graduates skilled in communication techniques required to become
successful professionals in private or public sector.
PLO 3. To create graduates with the ability to apply theory to real life practices in a
competitive environment using leadership and team building competencies.
PLO 4. To ingrain in students’ work, ethics and efficient time management behavior to
succeed in a professional atmosphere.

Dr. Moazam Mahmood | ECO (406) 5

 PLO 5. To develop a futuristic vision and students to enable them to become successful
entrepreneurs and academicians.

Program Learning Objectives Course Learning Objectives Course

Assessment
Item
PLO 1. To produce graduates with To understand the meaning of key Assignments,
Modeling Lab
advanced knowledge and in macroeconomic variables (CLO 1)
& Exams
depth understanding of the To learn about the working of the global
theories, principles and economy with the help of quantum estimation
analytical techniques to tackle and different analytical tools (CLO 2)
issues in economic and business To learn about different policy objectives and
policy. To enable graduates to policy instruments to help understand agent
have sufficient hand varied behavior determining macro aggregates and
knowledge base to respond to prices. (CLO 3)
the dynamics of business To be able to understand the working of the
practices labor markets Macro General Equilibrium models of global
worldwide. economy (CLO 4)
To be able to understand the global
macroeconomic determinants of growth
including key macroeconomic variables from the
real economy like employment, investment,
wages and worker productivity, and price
variables like interest rate, inflation and
exchange rate. (CLO 5)
To learn how to use Python for simulating the
aggregate demand and long run growth rates for
Pakistan using the Macroeconomic General
Equilibrium Model (CLO 7)

PLO 2. To produce graduates To learn about the working of the global Assignments

Dr. Moazam Mahmood | ECO (406) 6

 skilled in communication economy with the help of quantum estimation &
techniques required to become Presentations
and different analytical tools (CLO 2)
successful professionals in
private or public sector. To learn about different policy objectives and
policy instruments to help understand agent
behavior determining macro aggregates and
prices. (CLO 3)
To be able to understand the global
macroeconomic determinants of growth
including key macroeconomic variables from the
real economy like employment, investment,
wages and worker productivity, and price
variables like interest rate, inflation and
exchange rate. (CLO 5)
PLO 3. To create graduates To learn about the working of the global Assignments
with the ability to apply theory &
economy with the help of quantum estimation
to real life practices in a Presentations
competitive environment using and different analytical tools (CLO 2)
leadership and team building
To be able to understand the working of the
competencies.
Macro General Equilibrium models of global
economy (CLO 4)
To learn about the various challenges that arise
in economic applications and how to deal with
them (CLO 6)
To learn how to use Python for simulating the
aggregate demand and long run growth rates for
Pakistan using the Macroeconomic General
Equilibrium Model (CLO 7)

PLO 4. To ingrain in students’ To be able to understand the global Assignments,

work, ethics and efficient time Group
macroeconomic determinants of growth
management behavior to Activity &
succeed in a professional including key macroeconomic variables from the final term
atmosphere. presentation

Dr. Moazam Mahmood | ECO (406) 7

 real economy like employment, investment,
wages and worker productivity, and price
variables like interest rate, inflation and
exchange rate. (CLO 5)
To learn about the various challenges that arise
in economic applications and how to deal with
them (CLO 6)
PLO 5. To develop a futuristic To learn about different policy objectives and Assignments,
vision and students to enable Modeling lab
policy instruments to help understand agent
them to become successful & Final
entrepreneurs and behavior determining macro aggregates and Presentations
academicians.
prices. (CLO 3)
To be able to understand the working of the
Macro General Equilibrium models of global
economy (CLO 4)
To learn about the various challenges that arise
in economic applications and how to deal with
them (CLO 6)
To learn how to use Python for simulating the
aggregate demand and long run growth rates for
Pakistan using the Macroeconomic General
Equilibrium Model (CLO 7)

Recommended Text Book

1. Keynes, J. (1935). The General Theory of Employment, Interest, and Money
2. Blanchard, O., & Johnson, D. (2013). Macroeconomics (6th ed.). Pearson.

Reading List
Week 1: The Global Economy and the Global Recession 11 years on
i. Blanchard, O., Romer, D., Spence, M., & Stiglitz, J. (Eds.). (2012). In the Wake of the Crisis
Leading Economists Reassess Economic Policy. Cambridge: MIT Press.

Dr. Moazam Mahmood | ECO (406) 8

 ii. Ball, L.B., Leigh, D., & Loungani, P. 2013. Okun's Law: Fit at 50? Research Department
International Monetary Fund.
iii. Romer, D. (1999). Short run Fluctuations. Revised January 2018

Week 2: Policy Objectives and Policy Instruments- An introduction to analytics

Kaldor, N. (1971). The dynamic effects of the common market. London: Destiny or delusion: Britain
and the Common Market.
i. ILO, 2010 – 2014, Global Employment Trends, Economic and Labour Market Analysis
Department, Geneva.
ii. Blanchard, O., & Johnson, D. (2013). Macroeconomics (6th ed.). Pearson. (Chapter 2)
iii. Abel, A., Bernanke, B., & Croushore, D. (2013). Macroeconomics (Global Edition, 8th ed.).
Pearson. (Chapter 3)
iv. O'Sullivan, A., Sheffrin, S., & Perez, S. (2010). Macroeconomics: Principles, Applications, and
Tools (7th ed.). Pearson. (Chapters 6 and 7)

Week 3: Macro General Equilibrium models of global economy: giving alternative explanations of
disequilibrium and equilibrium, and business cycles in the macro economy
i. Plosser, C., & Long, J. (1983). Real Business Cycles. Journal of Political Economy,91(1).
ii. Garrison, R. (2000). Time and Money: The Macroeconomics of Capital Structure. London:
Routledge.
iii. Minsky, H. (1974). The modeling of financial instability: An introduction. In Proceedings of the
fifth annual pittsburgh conference on modelling and simulation (Vol. 5). Pittsburgh: Instruments
Society of America.
iv. Abel, A., Bernanke, B., & Croushore, D. (2013). Macroeconomics (Global Edition, 8th ed.).
Pearson. (Chapters 8, 10, 11 and 12)

Weeks 4-6 A useful framework for analysis of the macro economy and macro policy options: the
ISLM model
i. Blanchard, O., & Johnson, D. (2013). Macroeconomics (6th ed.). Pearson. (Chapter 5)

Dr. Moazam Mahmood | ECO (406) 9

 ii. Keynes, J. (1935). The General Theory of Employment, Interest, and Money: Book IV Chapters
11-17
iii. Friedman, M. (1968). The Role of Monetary Policy. American Economic Review.
iv. Phelps, E. (1968). Money-Wage Dynamics and Labor-Market Equilibrium. Journal of Political
Economy.
v. Sargent, T., & Wallace, N. (1975). Rational" Expectations, the Optimal Monetary Instrument,
and the Optimal Money Supply Rule. Journal of Political Economy,83(2).
vi. Lucas, R. (1972). Expectations and the neutrality of money. Journal of Economic Theory,4(2).
vii. Orphanides, A., & Williams, J. (2007). Inflation Targeting under Imperfect
Knowledge. Monetary Policy under Inflation Targeting (Central Bank Chile),11.
viii. Mckinnon, R. (1973). Money and Capital in Economic Development. The Brookings Institution.
ix. Woodward, D., & Schunk, D. (2005). Spending Stabilization Rules: A Solution to Recurring
State Budget Crises? Public Budgeting & Finance,25(4).

Week 7: Partial and General Equilibrium: An introduction to modelling the labour market and
embedding in GE model: Keynes vs Pigou
i. Keynes, J. (1935). The General Theory of Employment, Interest, and Money: Book I Chapters 1-
3; Book III Chapter 18; Book IV Chapters 19-20 including Appendix.

Week 8: Macro policy options and tools for generating output and employment: From linearities
to non linearities
i. Bewley, T. F. 1999. Why wages don't fall during a recession. Cambridge, MA.: Harvard
University Press.
ii. Dickens, W. T. 2009. A new method for estimating time variation in the NAIRU. Pages 205 242
of: Fuhrer, J., & Kodrzycki, Y. K. (eds), Understanding the implications for monetary policy: A
Phillips curve perspective. MIT Press.
iii. Sell, F. L. 2016. Combining the Beveridge and the Phillips Curve into an integrative model: The
Modified Output Gap. Review of Economics and Finance, 6(2), 1 12.
iv. Blanchflower, D. G., & Oswald, A. J. 1994. The wage curve. Cambridge, MA.: MIT Press.
v. Acemoglu, D. 2001. Good jobs vs. bad jobs. Journal of Labor Economics, 19(1), 1 21.
vi. Ball, L.B., Leigh, D., & Loungani, P. 2013. Okun's Law: Fit at 50?
vii. Barnichon, R., & Nekarda, C. J. 2012. The ins and outs of forecasting unemployment: Using
labor force ows to forecast the labor market. Brookings Papers on Economic Activity, Fall, 83
117.

Dr. Moazam Mahmood | ECO (406) 10

viii. Cazes, S., Verick, S., & Al Hussami, F. 2013. Why did unemployment respond so differently to
the global financial crisis across countries? Insights from Okun's Law. IZA Journal of Labor
Policy, 2(1), 1 18.
ix. Goodwin, R. M. 1967. A growth cycle. In: Feinstein, C. H. (ed), Socialism, Capitalism and
Economic Growth. Cambridge: Cambridge University Press.
Week 9: Modelling the global macro economy and labour market using the DESA MODEL
i. Clive Altshuler Dawn Holland Pingfan Hong Hung-Yi Li, 2016, The World Economic
Forecasting Model at the United Nations, Development Policy and Analysis Division
Department of Economic and Social Affairs United Nations
ii. Wynne Godley and Cripps Francis, 1983, Macroecnomics, Oxford.

Week 10: The macro drivers of global poverty reduction and welfare to meet the SDGs: some
newer welfare theorems
i. Banerjee, A., & Duflo, E. (2011). Poor Economics: A Radical Rethinking of the Way to Fight
Global Poverty. New York: Public Affairs.
ii. Jefferson, P. (Ed.). (2012). The Oxford Handbook of the Economics of Poverty. New York:
Oxford University Press.
iii. Sachs, J. (2005). The End of Poverty: Economic Possibilities for Our Time. New York: The
Penguin Press.
iv. Addison, T. (2009). Poverty Dynamics: Interdisciplinary Perspectives (D. Hume & R. Kanbur,
Eds.). New York: Oxford University Press Inc.

Pedagogy
The course is heavily based on lectures followed by assignments and presentations.
Examinations
There will be two examinations for this course. The exams will consist of problems and theory
questions based on assignments, class lectures, and class discussions. No make-up exam will be given
except for medical emergencies. The make-up exam will only be administered if the request is approved
by Lahore School administration.
Missed Exam Policy:
The controller of examinations must determine that a valid excuse has been accepted. If a mid-
term is missed with a valid excuse, the make-up will be given with the final exam.
Unexcused missed mid-terms will receive a grade of zero. Students who miss the final will have to take
it the following year (i.e. the next time the course is offered). Students without a valid excuse for the
final exam will have to re-take the course.

Dr. Moazam Mahmood | ECO (406) 11

Policy on Plagiarism/Cheating
The plagiarism in group project/presentation or cheating during exam will result in a 0 on the
presentation. The students must note that plagiarism include the submission/presentation of a
report/article that has been previously used for another course (even by the same author) or using the
graded material of this course for some other course.
Lahore School of Economics Plagiarism Policy:
Lahore School adheres strictly to HEC plagiarism policy available on the HEC website and Lahore
School handbook on plagiarism policy. The policy can be found at:
http://hec.gov.pk/english/services/faculty/Documents/Plagiarism/Plagiarism%20Policy.pdf

Assessment Criteria
The following will be the assessment criterion for the course

Final Exam 35%

Mid Term 20%
Quizzes 20%
Assignments/ Presentations 20%
Attendance and Class Participation 5%

Core Requirements
1. Calculator (No Exceptions) CELL PHONES/ SMART WATCHES MAY NOT BE USED AS
CALCULATORS.

Dr. Moazam Mahmood | ECO (406) 12

 CALENDAR OF ACTIVITIES
Week TOPIC Discussion Topics Suggested Readings
● Blanchard, O., Romer, D., Spence, M., &
Stiglitz, J. (Eds.). (2012). In the Wake of the
Crisis Leading Economists Reassess Economic
Policy. Cambridge: MIT Press.
The Global Economy and ● Ball, L.B., Leigh, D., & Loungani, P. 2013.
INTRODUCTION the Global Recession 11
1 years on Okun's Law: Fit at 50? Research Department
International Monetary Fund.
● Romer, D. (1999). Short run Fluctuations.
Revised January 2018

● ILO, 2010 – 2014, Global Employment Trends,

Economic and Labour Market Analysis
Department, Geneva.
POLICY
Policy Objectives and ● Blanchard, O., & Johnson, D.
OBJECTIVES
Policy Instruments- Agent
AND POLICY (2013). Macroeconomics (6th ed.). Pearson.
behavior determining
INSTRUMENTS-
2 macro aggregates and (Chapter 2)
AN
prices
INTRODUCTION ● Abel, A., Bernanke, B., & Croushore, D.
TO ANALYTICS
(2013). Macroeconomics (Global Edition, 8th
ed.). Pearson. (Chapter 3)

MACRO
● Plosser, C., & Long, J. (1983). Real Business
GENERAL
EQUILIBRIUM Cycles. Journal of Political Economy,91(1).
MODELS OF
● Garrison, R. (2000). Time and Money: The
GLOBAL Macro General
ECONOMY: Equilibrium models of Macroeconomics of Capital Structure. London:
GIVING global economy: giving
Routledge.
ALTERNATIVE alternative explanations of
3 EXPLANATIONS disequilibrium and ● Minsky, H. (1974). The modeling of financial
OF equilibrium, and business
instability: An introduction. In Proceedings of
DISEQUILIBRIU cycles in the macro
M AND economy the fifth annual pittsburgh conference on
EQUILIBRIUM,
modelling and simulation (Vol. 5). Pittsburgh:
AND BUSINESS
CYCLES IN THE Instruments Society of America.
MACRO
ECONOMY
A useful A useful framework for
● Keynes, J. (1935). The General Theory of
framework for analysis of the macro
analysis of the economy and macro policy Employment, Interest, and Money: Book IV
4, 5 & 6
macro options: the ISLM model

Dr. Moazam Mahmood | ECO (406) 13

 economy and in a closed economy Chapters 11-17
macro policy
● Friedman, M. (1968). The Role of Monetary
options: the The ISLM model in an
ISLM model open economy, and Policy. American Economic Review.
incorporating expectations
● Phelps, E. (1968). Money-Wage Dynamics and
Labor-Market Equilibrium. Journal of Political
Economy.
● Sargent, T., & Wallace, N. (1975). Rational"
Expectations, the Optimal Monetary Instrument,
and the Optimal Money Supply Rule. Journal of
Political Economy,83(2).
● Lucas, R. (1972). Expectations and the
neutrality of money. Journal of Economic
Theory,4(2).
● Orphanides, A., & Williams, J. (2007). Inflation
Targeting under Imperfect
Knowledge. Monetary Policy under Inflation
Targeting (Central Bank Chile),11.
● Mckinnon, R. (1973). Money and Capital in
Economic Development. The Brookings
Institution.
● Woodward, D., & Schunk, D. (2005). Spending
Stabilization Rules: A Solution to Recurring
State Budget Crises? Public Budgeting &
Finance,25(4).

Partial and
General ● Keynes, J. (1935). The General Theory of
Equilibrium: Partial and General Employment, Interest, and Money: Book I
An Equilibrium: An
introduction to introduction to modelling Chapters 1-3; Book III Chapter 18; Book IV
7
modelling the the labour market and Chapters 19-20 including Appendix.
labour market embedding in a GE model
and
embedding in
GE model
MID TERM EXAMINATION
8
Macro policy ● Macro policy ● Dickens, W. T. 2009. A new method for
options and options and tools estimating time variation in the NAIRU. Pages
tools for for generating 205 242 of: Fuhrer, J., & Kodrzycki, Y. K.
generating output and (eds), Understanding the implications for
9
output and employment monetary policy: A Phillips curve perspective.
employment: MIT Press.

Dr. Moazam Mahmood | ECO (406) 14

 From ● Sell, F. L. 2016. Combining the Beveridge and
linearities to the Phillips Curve into an integrative model:
non linearities The Modified Output Gap. Review of
Economics and Finance, 6(2), 1 12.
● Blanchflower, D. G., & Oswald, A. J. 1994. The
wage curve. Cambridge, MA.: MIT Press.
● Acemoglu, D. 2001. Good jobs vs. bad jobs.
Journal of Labor Economics, 19(1), 1 21.
● Ball, L.B., Leigh, D., & Loungani, P. 2013.
Okun's Law: Fit at 50?
● Barnichon, R., & Nekarda, C. J. 2012. The ins
and outs of forecasting unemployment: Using
labor force ows to forecast the labor market.
Brookings Papers on Economic Activity, Fall,
83 117.
● Cazes, S., Verick, S., & Al Hussami, F. 2013.
Why did unemployment respond so differently
to the global financial crisis across countries?
Insights from Okun's Law. IZA Journal of Labor
Policy, 2(1), 1 18.
● Goodwin, R. M. 1967. A growth cycle. In:
Feinstein, C. H. (ed), Socialism, Capitalism and
Economic Growth. Cambridge: Cambridge
University Press.

● Clive Altshuler Dawn Holland Pingfan Hong

Modelling the global
Hung-Yi Li, 2016, The World Economic
macro economy and
Modelling the labour market Forecasting Model at the United Nations,
global macro Development Policy and Analysis Division
10 Department of Economic and Social Affairs
economy and Policy simulation
United Nations
labour market exercises using a Global
● Wynne Godley and Cripps Francis, 1983,
Policy Model
Macroecnomics, Oxford.

● Banerjee, A., & Duflo, E. (2011). Poor

Economics: A Radical Rethinking of the Way to
Fight Global Poverty. New York: Public
The macro Affairs.
drivers of ● Jefferson, P. (Ed.). (2012). The Oxford
The macro drivers of
global poverty Handbook of the Economics of Poverty. New
global poverty reduction
reduction and York: Oxford University Press.
and welfare to meet the
11 welfare to ● Sachs, J. (2005). The End of Poverty: Economic
SDGs: some newer
meet the Possibilities for Our Time. New York: The
welfare theorems
SDGs: some Penguin Press.
newer welfare ● Addison, T. (2009). Poverty Dynamics:
theorems Interdisciplinary Perspectives (D. Hume & R.
Kanbur, Eds.). New York: Oxford University
Press Inc.

A GE macro model based

A general
on aggregate demand
equilibrium
12 macro model –
A growth and distribution
applicable to
model
any country

Dr. Moazam Mahmood | ECO (406) 15

 A growth model based on
production functions

An Okun model for

employment

Python’s basic operators

Command generation and
execution

How matrix algebra is

used to solve a linear
Introduction
system of equations
to Python and
13 through:
Linear
Matrix Inversion
Algebra
Cramer’s Rule

Solving a linear system of

equation using matrix
algebra in Python

Simulations based on a
closed economy using:
(i) Changes in the
saving rate
(ii) Changes in the
marginal propensity
A general to consume
equilibrium (iii) Changes in the
14, 15 & macro model budget deficit
16 based on Simulations based on an
aggregate open economy
demand (i) Changes in the
saving rate
(ii) Changes in the
marginal propensity
to consume
(iii) Changes in the
budget deficit
17 FINAL TERM EXAMINATION

Dr. Moazam Mahmood | ECO (406) 16