Introductory Macroeconomics

Paper Code: 
CECO 211
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

1.      To introduce the students to the basic concepts of national income.

2.      To appraise the student with preliminary concepts associated with the determination of output according to Classical and Keynes model.

3.      To describe various income consumption hypotheses.

18.00
Unit I: 
Introduction of Macroeconomics
  • Microeconomic versus macroeconomics
  • Meaning and scope of macroeconomics
  • Macroeconomic variables
  • Macroeconomic Paradoxes
  • Stock and flow concepts
  • Static, comparative static and dynamic macroeconomic analysis.
  • Macroeconomic schools (Classical and Keynesian)
18.00
Unit II: 
National Income Accounting
  • National income and related aggregates
  • Methods of measuring national income
  • Circular flow of income model;
  • Real versus nominal GDP
  • Problems in measurement of national income
  • National income estimates in India
18.00
Unit III: 
Classical Economics
  • Say’s Law of markets; assumptions of classical model
  • Determination of Equilibrium output and employment in simple Classical  Model
  • Effect of changes(Money supply, labour demand/supply, labour productivity)
  • Keynes’ criticism of the Classical Model
18.00
Unit IV: 
Keynesian Economics
  • Consumption Function and Investment Function;
  • Simple Keynesian model of employment and income determination (AD-AS & S-I Approach)
  • Working of investment multiplier; concepts of tax multiplier, government expenditure multiplier and balanced budget multiplier (graphical and algebraic derivation)
18.00
Unit V: 
Consumption and Investment
  • Kuznets puzzle
  •  Absolute income hypothesis, relative income hypothesis, life-cycle hypothesis and permanent income hypothesis
  • Investment–Components and determinants; MEI, MEC
  • Acceleration Principle
Essential Readings: 

1.      Ahuja, H.L., Macroeconomics: Theory and Policy, S. Chand, 20th edition 2016.

2.      Mankiw, N. G., Macroeconomics, Worth Publishers, 7th edition, 2010.

References: 

1.      Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th Edition, 2010.

2.      Froyen, R. T, Macroeconomics, Pearson Education Asia, 2nd Edition, 2005.

            3. Case, K.E. and Fair,R.C., Principles of Economics, Pearson Education Inc., 8th Edition, 2007.

Academic Session: 
2023-24
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