Macroeconomic Theory

Paper Code: 
CECO 201
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

1.      To introduce the students to the basic concepts of macroeconomics and 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 the concept of economic growth and trade cycles

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
  • 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 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
  • Trade Cycles: Meaning and phases
  • Trade Cycles- Causes and remedial measures.
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

4.      Misra S. K. and Puri V.K., (latest edition), Economics of Development and Planning: Theory and Practice, Himalaya Publishing House, New Delhi

Academic Session: 
2023-24
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