Macroeconomic Theory

Paper Code:

24CECO 201

Credits:

Contact Hours:

90.00

Max. Marks:

100.00

Objective:

To introduce the students to the basic concepts of macroeconomics and national income
To appraise the student with preliminary concepts associated with the determination of output according to Classical and Keynes model
To describe the concept of economic growth and trade cycles

Course Outcomes:

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course Title

24CECO 201

Macroeconomic Theory

(Theory)

Students will:

CO7: comprehend fundamentals of macroeconomics

CO8: evaluate different aspects of national income accounting

CO9: critically analyze the classical economics

CO10: analyze Keynesian economics and investment multiplier

CO11: analyze various aspects of growth and development and trade cycles

CO 12: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 to Macroeconomics

Microeconomics versus macroeconomics
Meaning and scope of macroeconomics
Macroeconomic variables
Stock and flow concepts
Macroeconomic paradoxes
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 determination of employment (AD-AS Approach)
Keynesian model of determination of income (S-I Approach)
Investment Multiplier- Definition, concept and working

18.00

Unit V:

Elementary Study of Economic Growth &Trade Cycles

Economic growth and development
Measurement of economic growth
Factors of economic growth- economic and non-economic.
Measurement of quality of human life- PQLI, HDI, GII& MPI
Trade Cycles: Meaning and phases
Trade Cycles- Causes and remedial measures.

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:

Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11^th Edition, 2010.
Froyen, R. T, Macroeconomics, Pearson Education Asia, 2^nd Edition, 2005.
Case, K.E. and Fair,R.C., Principles of Economics, Pearson Education Inc., 8^th Edition, 2007
MisraS. K. and Puri V.K., (latest edition), Economics of Development and Planning: Theory and Practice, Himalaya Publishing House, New Delhi

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: