Intermediate Macroeconomics-I

Paper Code: 
ECO 312
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 
  1. To comprehend the process of determination of income and employment in the Classical and Keynesian model
  2. To discuss the various consumption hypotheses like Absolute income hypothesis, relative income hypothesis, life-cycle hypothesis and permanent income hypothesis
  3. To analyze the IS LM Model and its policy implications

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 312

Intermediate Macroeconomics-I

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

CO36: Students will interpret the various consumption hypothesis and concepts of investment.

CO37: Students will examine the working 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: 
  • Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010.
  • N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th edition, 2010.
  • Richard T. Froyen, Macroeconomics, Pearson Education Asia, 2nd edition, 2005.
  • Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education Inc., 8th Edition, 2007.
  • Ahuja, H.L., Macroeconomics: Theory and Policy, S. Chand, 20th edition 2016.

 

Academic Session: 
2021-22
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