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Macroeconomics-I
Paper Code:
ECO 312
Credits:
3
Contact Hours:
45.00
Max. Marks:
100.00
Objective:
The basic objective of this paper is to give a new perspective and understanding of the basic theoretical framework underlying the field of macroeconomics to the students, inclusive of recent developments.
9.00
Unit I:
Classical Theory
- Say’s Law;
- Quantity Theory of Money – Fisher’s version;
- Classical Model of Employment and Income Determination;
- Impact of changes on the Classical Model – change in labour supply, change in production function, change in money supply, rigid money wages.
9.00
Unit II:
Keynesian Theory
- Keynes’ Criticism of the Classical Model;
- Keynes’ Model of Income Determination – 2 Approaches;
- Multiplier – Tax Multiplier and Government Expenditure Multiplier
9.00
Unit III:
Consumption
- Keynes’ Consumption function, Kuznets Puzzle;
- Irving Fisher and Intertemporal Choice;
- Franco Modigilani and Life Cycle Hypothesis;
- Milton Friedman & Permanent Income Hypothesis.
9.00
Unit IV:
Investment
- Investment Function;
- Components;
- Determinants, MEC;
- Accelerator.
9.00
Unit V:
Business Cycles
- Intoduction to economic fluctuations;
- Aggregate Demand – Shifts in aggregate demand;
- Aggregate Supply;
- Stabilization Policy – Shocks to Aggregate Demand, Shocks to Aggregate Supply.
Essential Readings:
- N. Gregory Mankiw, Macroeconomics, McGraw Hill, 11th edition, 2010.
- Dornbush, R., Stanley Fischer and Richard Startz, 11th edition, Macroeconomics, McGraw Hill.
- Errol D’Souza, Macroeconomics, Pearson Education, 2008.
- Froyen, R.T. (2001), Macroeconomics- Theories and Policies, Addison Wesley Longman, Singapore.
References:
- Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.
- Ahuja, H.L., Macro Economic Analysis, S. Chand.
- Diulio, Eugene A., Schaum’s Outline of Theory and Problems of Macroeconomics, McGraw-Hill.
- Ackley, G. (1976), Macroeconomics: Theory and Policy, Macmillan Publishing Company, New York.
Academic Session:
