Introductory Macroeconomics (Generic Elective Course)

Paper Code: 
GECO 401
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

1.      To develop an understanding of the concepts of national income.

2.      To describe the determination of equilibrium output and employment under classical and Keynesian economics.

3.     To explain the various phases and theories of business cycles

12.00
Unit I: 
National Income Accounting

·         National income and related aggregates

·         Methods of measuring national income,

·         Circular flow of income model;

·         Real versus nominal GDP.

12.00
Unit II: 
Classical Economics
  • Say’s Law and Quantity theory of Money
  • Determination of Equilibrium output and employment in simple Classical  Model;
  • Keynes’ criticism of the Classical Model.
12.00
Unit III: 
Keynesian Economics
  • Consumption Function; and Investment Function
  • Determination of equilibrium income, output and employment
12.00
Unit IV: 
Multiplier & Accelerator
  • Multiplier – Meaning & Working
  • Concept of Tax Multiplier, Government Expenditure Multiplier & Balanced Budget Multiplier
  • Accelerator – Meaning & Operation

 

12.00
Unit V: 
Theories of Trade Cycle
  • Concept and Phases of Trade Cycle
  • Theories of Trade Cycle-  Innovation theory, Keynes’ theory and Over Investment theory
  • Measures to control trade cycles 
Essential Readings: 
  1. Ahuja, H.L., Macroeconomic Analysis, S. Chand, 20th Edition, 2019.
  2.   Richard T. Froyen, Macroeconomics, Pearson Education Asia, 2nd Edition, 2013.
  3. Jhingan, M.L. The Economics of Development of Planning, Vrinda Publications (P) Ltd., 41st edition, 2019.
References: 
  1. Shapiro, E., Macroeconomic Analysis, Galgotia Publications, 5th Edition,2013.
  2. Vaish, M.C., Macroeconomics, WishwaPrakashan, 12th Edition, 2003.
Academic Session: 
2023-24
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