Coming soon
Advanced Macroeconomic Theory- I
- To introduce the students to national income accounting.
- To acquaint them with the theories of consumption and investment as well as money demand and supply.
- To make them understand the models of income and output determination under classical and Keynesian schools of thought.
|
|
Learning outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
|
|
Course Code |
Course Title |
|||
|
24DECO 712 |
Advanced Macroeconomic Theory –I (Theory) |
Students will- CO127: analyze different aspects of national income accounting. CO128: evaluate different aspects of income consumption relationship. CO129: analyze the concepts of demand for and supply of money, interest and investment CO130:critically analyze classical macroeconomics. CO131: analyze Keynesian economics. CO132: contribute effectively in course-specific interaction. |
Approach in teaching: Interactive Lectures, Discussions, Case studies.
Learning activities for the students: Presentations, Assignments and Group discussions. |
Class activity, Assignments, Quiz and Semester end examinations. |
- National income – Aggregates
- Circular flow of income
- Measurement of National Income
- Recent Changes in National Income Estimation in India,
- National Income and Economic Welfare,
- Flaws in conventional system of National Income Accounting,
- Green Accounting.
- Keynes’ Psychological law of Consumption;
- Short run and Long run consumption functions;
- Kuznets’ Consumption Puzzle,
- Irving Fisher and Inter-Temporal Choice;
- Consumption function hypotheses–Absolute Income Hypothesis, Relative Income Hypothesis, Life-Cycle Hypothesis and Permanent Income Hypothesis
- Demand for Money– Classical and Keynesian Approach; Post Keynesian theories of demand for Money - Baumol, Tobin and Friedman.
- Supply of Money - RBI’s approach to money supply, H theory of Money Supply
- Interest Rate - Monetary Equilibrium & Rate of Interest, Interest Rate theories – Classical theory, Loanable Funds theory & Liquidity Preference theory.
- Theory of Investment - Components of investment; Marginal efficiency of capital and Marginal efficiency of investment; Accelerator theory
- Simple Classical Model –determination of equilibrium output and employment;
- Say’s law of Market and Quantity Theory of Money;
- Effect of - Changes in money supply, labour supply, labour demand and rigid wages - on the full employment equilibrium values;
- Classical Model with savings and investment
- Criticisms of the Classical model
- Equilibrium in the Product Market – The aggregate demand and aggregate supply approach, Savings- Investment approach;
- Multiplier- Meaning&Working,
- Concept of Static and Dynamic Multiplier
- Government Expenditure Multiplier, Tax Multiplier, Balanced Budget Multiplier;
- Keynesian Theory of Employment,
- Complete Keynesian Model
- Rastogi Saurabh and Aiyar Shekhar, National Income and Accounting, Lotus Books.
- Richard,T.Froyen, Macroeconomics: Theories and Policies, Pearson Education India; 10 edition ,2013.
- Vaish, M.C. Macroeconomic Theory, Vikas Publishing House, New Delhi, 14th Edition, 2014.
Suggested Readings:
- Branson, W. H., Macroeconomic Theory and Policy, Affilated East-west Press Pvt Ltd.; 3rd edition, 2005.
- Gregory Mankiw, Macroeconomics, Worth Publishers Inc.,5th Revised edition, 2002.
- Edgemond, P., Macroeconomics, PHI, New Delhi, 1999.
- Rana, K.C.&Verma, K.N., Macroeconomic Analysis, Vishal Publishing Co., 11th edition, 2014.
- Ahuja, H. L.,Macroeconomics – Theory & Policy, S. Chand, 20th edition, 2019.
E Resources:
- Changes in Methodology and Data Sources in the New Series of National Accounts, Base Year 2011-12, June 2015, Ministry of Statistics &Programme Implementation, India.
https://epgp.inflibnet.ac.in/Home/ViewSubject?catid=NEp/xikgBgNtfA+sgFQAcA==
Journal:
- Journal of Macroeconomics, Elsevier
