Macro Economic Analysis

Paper Code: 
24ATG/BSG/FSG223
Credits: 
06
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to develop a comprehensive understanding of macroeconomic concepts, theories, and key variables such as national income, inflation, and trade cycles.

 

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

title

 

24FSG223

 

Macro Economic Analysis

(Theory)

CO43: Examine the fundamentals of macroeconomics and Critically evaluate the classical theory of income and employment.

CO44: Evaluate the effectiveness of the Keynesian theory in explaining fluctuations in employment levels.

 CO45: Examine the fundamentals of investment function, multiplier and accelerator.

CO46: Interpret inflationary trends using key concepts by applying various theories to analyze trade cycle stages.

CO47: Analyze the national income and estimate NI through measurement of national income.

CO48: Contribute effectively in course-specific interaction.

 

Approach in teaching:

 

Interactive Lectures, Discussion, Tutorials,     Projects

 

Learning activities for the students:

 

Field activities, Presentation, Debates,

Case Studies

, Role-Playing

Class test, Semester end examinations, Quiz, Solving Numerical problems in tutorials, Assignments, Class Presentation

 

18.00
Unit I: 
Macro Economics and Classical Theory of Employment
  • 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: 
Keynesian Theory of Employment and Consumption function
  • 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: 
Investment Functions, Multiplier, and Accelerator
  • 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: 
Inflation and Trade Cycle
  • 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: 
National Income Analysis
  • 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: 
  1. Seth M. L, Macro Economic theory, M.L. Seth, Laxmi Narayan Agarwal, Agra
  2. Vaish M. C ,Macro economic Theory, Wishwa Prakashan, New Delhi
  3. Ahuja H.L. , S. Chand & Sons Publication, Delhi
  4. Shapiro Edward, Macro Economic Analysis Galgotia Publication, Delhi
  5. Mithani D.M, Money, Banking International Trade and Public Finance, Himalaya Publishing House

 

References: 

Suggested Readings:

  1. Koutsoyiannis, Modern Economics, New York, Macmillan,1991
  2. Dornbusch, R. and S., Fischer. Macro Economics . Publisher Tata McGraw Hill
  3. Mankiw, N. Gregory. Macro Economics. Macmillan.
  4. Oliver, Blanchard. Macro Economics, Pearson Education, LPE.

E- resources:

  1. https://m.rbi.org.in/scripts/Publications.aspx
  2. https://www.pdfdrive.com/macroeconomics-e158130218.html
  3. https://www.pdfdrive.com/intermediate-macroeconomics-books.html
  4. https://www.pdfdrive.com/principles-of-macroeconomics-e18719078.html
  5. Yojana, A development Monthly, Government of India Publication
  6. Microeconomics and Macroeconomics, Scientific and Academic Publishing
  7. Economics, De Gruyter Open Access
  8. International Journal of Economics and Business Research, Inderscience Publisher
  9. Bank Quest, Indian Institute of Banking and Finance, India

 

Academic Year: 
2024-2025
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