MACRO-ECONOMIC ANALYSIS (THEORY)

Paper Code: 
ATG 223
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

Course Outcomes (Cos):

Course Outcomes

Learning and teaching strategies

Assessment Strategies

  
 

On completion of this course, the students will be able to:

  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.

Interactive Lectures, Group Discussion, Tutorials, Reading assignments, Workshops and question preparation

 

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: 

• Seth M. L, Macro Economic theory, M.L. Seth, Laxmi Narayan Agarwal, Agra
• Vaish M. C ,Macro economic Theory, Wishwa Prakashan, New Delhi
• Ahuja H.L. , S. Chand & Sons Publication, Delhi
• Shapiro Edward, Macro Economic Analysis Galgotia Publication, Delhi
• Mithani D.M, Money, Banking International Trade and Public Finance, Himalaya Publishing House

References: 

SUGGESTED READING

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

e-RESOURCES

JOURNALS

  • Yojana, A development Monthly, Government of India Publication
  • Microeconomics and Macroeconomics, Scientific and Academic Publishing
  • Economics, De Gruyter Open Access
  • International Journal of Economics and Business Research, Inderscience Publisher
  • Bank Quest, Indian Institute of Banking and Finance, India

 

Academic Year: 
2022-2023
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