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.

9.00
Unit I: 
Classical Economics
  • Say’s Law;
  • Determination of Equilibrium output and employment in simple Classical  Model;
  • Keynes’ criticism of  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;
  • Super Multiplier.
  • Static & Dynamic Multiplier;
  • Concept of Tax Multiplier, Government Expenditure Multiplier & Balanced Budget Multiplier;
  • Accelerator – Meaning & Operation;
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: 

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, Wishwa Prakashan, 12th Edition, 2003.

Academic Session: 
2022-23
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