Intermediate Macroeconomics-I

Paper Code: 
ECO 312
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

 

The objectives of this course are –

 

  1. To get knowledge of application of mathematical tools in macroeconomic analysis.
  2. Knowing about features of closed and open economy models.
  3. Knowing about process of determination of income and employment in an economy

 

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 312

Intermediate Macroeconomics-I

CO35: Understand the theories of income, employment, and output determination in context to classical and Keynesian approaches.

CO36: Acquire knowledge of the various consumption hypothesis and concepts of investment.

CO37: Develop an understanding of IS -LM model.

Approach in teaching: Interactive Lectures, Discussion,  Case studies.

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments and  Semester end examinations.

 

 

9.00
Unit I: 
Classical Model

Say’s law, Simple classical model of output determination, effect of changes, Keynes’ critique of the classical model.

 

9.00
Unit II: 
Keynesian Model

Simple Keynesian model of employment and income determination.

Working of investment multiplier; concepts of tax multiplier, government expenditure multiplier and balanced budget multiplier.

 

9.00
Unit III: 
Consumption and Investment

Absolute income hypothesis, relative income hypothesis, life-cycle hypothesis and permanent income hypothesis. Investment – Components and determinants; Acceleration Principle.

 

9.00
Unit IV: 
IS-LM Model

Goods market and IS curve, Money market and LM curve- graphic and algebraic derivation, Simultaneous equilibrium in the goods and money market.

9.00
Unit V: 
Policy Effects in the IS-LM Model

Factors affecting equilibrium income and interest rate, relative effectiveness of monetary and fiscal policy.

 

Essential Readings: 
  1. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010.
  2. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th edition, 2010.
  3. Richard T. Froyen, Macroeconomics, Pearson Education Asia, 2nd edition, 2005.
  4. Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education Inc., 8th Edition, 2007.
  5. Ahuja, H.L., Macroeconomics: Theory and Policy, S. Chand, 20th edition 2016.

 

Academic Session: 
2020-21
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