Macroeconomics

Paper Code: 
ECO 501
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 
  1. To describe the determination of equilibrium output and employment under classical and Keynesian economics.
  2. To explain the various phases and theories of business cycles.
  3. To develop an understanding of the concepts of economic growth and development.
  4. Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 501

Macroeconomics

CO 33: Students willexamine the theories of income, employment, and output determination in context of Classical and Keynesian schools of thought.

CO 34: Students will describe the working of multiplier and accelerator.

CO 35: Students willanalyze the causes and measures to control business cycles.

CO 36: Students willexamine the concepts of economic growth and development.

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.

 

9.00
Unit I: 
Classical Economics
  • Say’s Law;
  • Determination of Equilibrium output and employment in simple Classical  Model;
  • Keynes’ attack on the Classical Model.

 

9.00
Unit II: 
Keynesian Economics
  • Consumption Function;
  • Investment Function;
  • Determination of equilibrium income, output and employment.

 

9.00
Unit III: 
Multiplier & Accelerator
  • Multiplier – Meaning & Working;
  • Static & Dynamic Multiplier;
  • Concept of Tax Multiplier, Government Expenditure Multiplier & Balanced Budget Multiplier;
  • Accelerator – Meaning & Operation;
  • Super Multiplier.

 

9.00
Unit IV: 
Business Cycles
  • Business cycles : Meaning & Phases
  • Theories of business cycles : Sunspot theory, Psychological theory, Over investment theory, Keynes’ Theory
  • Measures to control Business cycle

 

9.00
Unit V: 
Economic Growth and Development
  • Economic Development and Growth
  • Measurement of Economic Growth
  • Human Development Indices – PQLI, HDI
  • Factors of Growth – Economic and Non Economic.

 

Essential Readings: 
  • Ahuja, H.L., Macroeconomic Analysis, S. Chand.
  • Rana K.C. & K.N. Verma, Macro Economic Analysis , Vishal Publishing CO.
  • Froyen R., Macroeconomics, Pearson Education.
  • Jhingan M.L., The Economics of Development of Planning, Vrinda Publications (P) Ltd., New Delhi.

 

References: 
  • Shapiro, E., Macroeconomic Analysis, Galgotia Publications, New    Delhi.
  • Ackley, G., Macroeconomics: Theory and Policy, Macmillan Publishing Company, New York.
  • Rastogi, S. and S. Aiyar , National Income and Accounting, Lotus Books.
  • Schaum’s Outlines, Macroeconomics, Tata McGraw Hill.
  • Vaish, M.C., Macroeconomics, WishwaPrakashan.

 

Academic Session: 
2021-22
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