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Macro Economics (Theory)
This course will enable the students to understand the founding concepts of macroeconomics and Compare the Classical and the Keynesian theories and associate them with the current macroeconomic concepts.
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24CBTM201 |
Macro Economics (Theory)
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CO55Analyze basic macroeconomic terminology (as e.g., national income, aggregate demand, aggregate supply, trade cycle, inflation etc.) in a comprehensive and intuitive way. CO56:Compare the Classical and the Keynesian theories and associate them with the current macroeconomic concepts. CO57:Utilize the ISLM model to explain the national macroeconomic variables and various policy issues (e.g., fiscal policy, monetary policy) CO58:Appraise the role of money, credit, and RBI monetary policy. In contemporary banking and monetary system. CO59:Examine the causes and types of Inflation and application of the macroeconomic concepts in understanding unemployment level and also to outline the role of exchange rates and Economic policies in development of an economy. CO60:Contribute effectively in course-specific interaction |
Approach in teaching: Interactive Hours, Discussion, Tutorials, Reading assignments
Learning activities for the students: Self learning assignments, Effective questions, Giving tasks
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Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects |
Introduction to Macro Economics: Basic Concepts of Macroeconomics, major concerns, scope, importance of macro economics, role of government in macro-economy, interdependence of macro and micro economics, goals and importance of macroeconomics; Circular flow of income; Measurement of Macroeconomic Aggregates: National Income Accounts, Gross Domestic Product, National Income, Personal and Personal disposable income; Multiplier effect of investment; Introduction to fiscal and monetary policy
Classical theory of income and employment: Labour market Equilibrium, Goods market equilibrium, Quantity Theory of Money.
Keynesian theory of Income and employment : simple Keynesian model, components of aggregate demand, equilibrium income, changes in equilibrium
IS-LM model : properties of IS-LM curves, factors affecting the position and slope of IS-LM curves, determination of equilibrium income and interest rates, effect of monetary and fiscal policy, relative effectiveness of monetary and fiscal policy, crowding out, composition of output and policy mix, policy mix in action
Money: functions of money, quantity theory of money, determination of money supply and demand, H theory of money multiplier, indicators and instruments of monetary control.
Inflation: meaning, demand and supply side factors, consequences of inflation, anti-inflationary policies, natural rate theory, monetary policy-output and inflation, Phillips curve (short run and long run) Open Economy: brief introduction to BoP account, market for foreign exchange and exchange rate, monetary and fiscal policy in open economy
1. Ahuja, H.L. (2019): Macroeconomics. (n.d.). India: S. Chand Publishing.
2. Dornbusch and Fischer (2010). Macroeconomics (9thed.). Tata McGraw Hill
3. Froyen, R.P. (2011): Macroeconomics-theories and policies (8th ed.) . Pearson:
Suggested Readings:
- Jain, T.R. (2020): Introductory Macroeconomics. VK Global Publications.
- N Gregory Mankiw (2010). Macroeconomics (7thed.). Worth Publishers
- Olivier Blanchard, Macroeconomics (2009). (5thed.) Pearson
E-Resources:
- https://www.yourarticlelibrary.com/macro-economics
- https://www.investopedia.com/terms/m/macroeconomics.asp
- https://www.slideshare.net/
