Introductory Macroeconomics

Paper Code: 
ECO 211
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

This course aims to introduce the students to the basic concepts of Macroeconomics. Macroeconomics deals with the aggregate economy. This course discusses the preliminary concepts associated with the determination and measurement of aggregate macroeconomic variable like savings, investment, GDP, money and inflation.

9.00
Unit I: 
National Income Accounting

National income and related aggregates, methods of measuring national income, circular flow of income model; real versus nominal GDP.

9.00
Unit II: 
Money

Functions and classification of money; Quantity theory of money – cash transactions and cash balance approach; determination of money supply and demand.

9.00
Unit III: 
Classical Model

Classical system: Say’s law, Simple classical model of output determination, and its criticism.

9.00
Unit IV: 
Keynesian Model

Simple Keynesian model of income determination and working of investment multiplier; concepts of tax multiplier, government expenditure multiplier and balanced budget multiplier.

9.00
Unit V: 
IS-LM Model

 Goods market and IS curve, Money market and LM curve, Equilibrium; deriving the aggregate demand schedule; Monetary policy, Fiscal policy, Policy mix.

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.
Academic Session: 
2019-20
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