Introductory Macroeconomics

Paper Code:

24CECO 211

Credits:

Contact Hours:

90.00

Max. Marks:

100.00

Objective:

To introduce the students to the basic concepts of national income.
To appraise the student with preliminary concepts associated with the determination of output according to Classical and Keynes model.
To describe various income consumption hypotheses.

Course Outcomes:

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course Title

24CECO 211

Introductory Macroeconomics

(Theory)

Students will:

CO13: comprehend fundamental macroeconomic principles

CO14: analyze different aspects of national income accounting

CO15: critically analyze classical economics.

CO16: evaluate Keynesian economics.

CO17: analyze different aspects of consumption and investment

CO18: contribute effectively in course-specific interaction.

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.

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

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:

Ahuja, H.L., Macroeconomics: Theory and Policy, S. Chand, 20^th edition 2016.
Mankiw, N. G., Macroeconomics, Worth Publishers, 7^th edition, 2010.

References:

Suggested Readings:

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

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

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

E-Resources :

· National Income – Concepts , Circular flow of Income , Measurement – M01, 02 03 04, Real and nominal variables – M05 , Inflation – its causes and effects M30

https://epgp.inflibnet.ac.in/Home/ViewSubject?catid=NEp/xikgBgNtfA+sgFQAcA==

Journals: