Macro Economic Theory II

Paper Code: 
COM 604
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to- The objective of this course is to explain the advanced concepts of different Macro economic variables and also discuss fluctuations of business cycles.

Course Outcomes (COs):

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

COM  604

Macro Economic Theory II

 

 

 

CO 210Understand the fundamentals of consumption function and investment function

 

CO 211Analyze the role of investment by understanding the concept of Keynesian multiplier and accelerator

 

CO 212Explain the concept and causes of inflation.

 

CO 213 Understand the cause and consequences of business cycle flutucations.

Approach in teaching:

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

 

 

Learning activities for the students:

Field activities, Presentation, Giving tasks

Observation, Presentation, Report writing

 

7.00
Unit I: 
Consumption function

Meaning, Attributes of Consumption functions, Significance of Marginal Propensity to Consume, psychological law of consumption, Determination of consumption functions

10.00
Unit II: 
Investment function

Meaning of Investment, types of investment,Marginal efficiency of capital, Marginal Efficiency of Capital

10.00
Unit III: 
Concept of Multiplier

Working of Multiplier, Assumptions of Multiplier, Leakages of Multiplier, Significance and Limitation of Multiplier.
Accelerator- Meaning, Principles, Difference between Multiplier-Accelerator

8.00
Unit IV: 
Inflation

Introduction, Meaning, Inflationary Gap, Demand- Pull and Cost –Push Inflation, Effects and Control of Inflation.

10.00
Unit V: 
Business Cycles

Meaning and Nature, Phases of Business Cycle – Recovery, Propriety, Recession, Depression.
Theory of Trade Cycle – Schumpeter Theory and Keynesian Theory, Criticism

References: 

• Macro Economic analysis - Edward Shapiro, Galgotia Publication, Delhi
• 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
• Dipsey R.G and Cheystal, Principles of economy, Oxford university Press

Academic Year: 
2020-2021
  • Printer-friendly version
  • PDF version