Macro-Economic Analysis

Paper Code: 
ATG 223
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 
  1. Acquire knowledge about  the concept and theories of Macroeconomics 
  2. Gain an understanding about the macroeconomic variables including national income, inflation and trade cycle.

 

Course Outcomes (Cos):

 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

ATG / BSG / FSG 223

 

Macro Economic Analysis (Theory)

 

The students will  –

  1. Examine the fundamentals of macroeconomics.
  2. Critically evaluate the classical theory of income and employment.
  3. Appraise the Keynesian approach to income output and employment, consumption function, investment function, multiplier and accelerator.
  4. Analyze the national income and estimate NI through measurement of national income.
  5. Interpret the inflationary trends by applying the concepts of inflation.
  6. Analyze the  stages of trade cycle and illustrate the concept and distinguish theories of trade cycle.

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, Reading assignments, Team teaching

 

Learning activities for the students:

 

Field activities, Presentation, Giving tasks

Class test,

Semester end examinations,

Quiz, Solving Numerical problems in tutorials, Assignments,

Class Presentation

 

18.00
Unit I: 
Unit I

Macro Economics- Definition, Nature, Scope, Types of Macro Economics Analysis-Macro Static, Macro Dynamic and Comparative Static
Classical theory of Employment : Meaning ,Type of unemployment, Assumption, Say’s Law of Market, Explanation of classical theory of employment & criticism

18.00
Unit II: 
Unit II

Keynesian Theory of employment: Introduction, Assumption, Effective demand, Explanation, Criticism, Comparison between Keynesian and classical theory
Consumption function – Meaning, Attributes, Factors affecting consumption function and psychological law of consumption

18.00
Unit III: 
Unit III

Investment functions: Meaning, Types of investment, Determinants of Investment, Factors affecting MEC, MEC and ROI, Investment demand curve.
Multiplier – Assumptions of Multiplier, Working of Multiplier, significance and limitations of multiplier, Leakages of Multiplier.
Accelerator- Meaning, Principles, Multiplier-Accelerator interaction

18.00
Unit IV: 
Unit IV

Inflation: Meaning, definition, cost- push inflation, demand- pull inflation, inflationary gap, measures to control inflation, effects of inflation.
Trade Cycle- meaning, Stages of trade cycle, theories of trade cycle; Keynesian theory of business cycle, Innovation theory of business cycle

18.00
Unit V: 
Unit V

National Income Analysis –Definition, Importance of national income calculation, Methods of measuring National Income, Calculation of National Income, Difficulties in measuring National Income, National income and Economic Welfare

Essential Readings: 

• Macro Economic theory - M.L. Seth, Laxmi Narayan Agarwal, Agra
• Macro Economic Theory – M.C. Vaish, Wishwa Prakashan, New Delhi
• Macro Economic Theory, H.L.Ahuja, S. Chand & Sons Publication, Delhi
• Macro Economic analysis - Edward Shapiro, Galgotia Publication, Delhi

Academic Year: 
2021-2022
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