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: 
  1. N. Gregory Mankiw, Macroeconomics, McGraw Hill, 11th edition, 2010.
  2. Dornbush, R., Stanley Fischer and Richard Startz, 11th  edition, Macroeconomics, McGraw Hill.
  3. Errol D’Souza, Macroeconomics, Pearson Education, 2008.
  4. Froyen, R.T. (2001), Macroeconomics- Theories and Policies, Addison Wesley Longman, Singapore.
References: 

1. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.

2.   Ahuja, H.L., Macro Economic Analysis, S. Chand.

  1. Diulio, Eugene A., Schaum’s Outline of Theory and Problems of Macroeconomics, McGraw-Hill.
  2. Ackley, G. (1976), Macroeconomics: Theory and Policy, Macmillan Publishing Company, New York.
Academic Session: 
2017-18
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