MACRO-ECONOMIC THEORY II

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

Learning Outcome (at course level)

Learning and teaching strategies

Assessment Strategies

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

  1. Students will analyze the fundamentals of consumption function and psychological law of consumption
  2. Student will examine the investment function and the role of Marginal efficiency of the capital in investment decision.
  3. Students will evaluate the role of investment by understanding the concept of Keynesian multiplier and accelerator
  4. Students will explore and evaluate the concept and causes of inflation.
  5. Assess the consequences of business cycle fluctuations.

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

Field activities, Presentation, Giving tasks

Observation, Presentation, Report writing
 

 

9.00
Unit I: 
Consumption function

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

9.00
Unit II: 
Investment function

• Meaning of Investment, types of investment,
• Marginal efficiency of capital,
• Marginal Efficiency of Capital and Investment demand curve,
• Marginal Efficiency of Capital and rate of interest,
• factors affecting marginal efficiency of capital.

9.00
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.

9.00
Unit IV: 
Inflation

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

9.00
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

Essential Readings: 

• M.L. Seth ,Macro Economic Theory, Laxmi Narayan Agarwal, Agra
• M.C. Vaish ,Macro economic Theory –,WishwaPrakashan, New Delhi
• H.L.Ahuja, Macro Economic Theory, , S.Chand& Sons Publication, Delhi
• Mithani. D.M, Money,Banking,International Trade and Public Finance., Himalayan Publication, New Delhi
• T. R Jain, B.D Majhi, Kartik Arora , Macroeconomics, VK Publications, New Delhi
• T. R Jain, O. P Khana, Macroeconomics Analysis and Policy, VK Publications, New Delh

References: 

• Dipsey R.G and Cheystal, Principles of Economy, Oxford university Press
• Edward Shapiro ,Macro Economic Analysis , Galgotia Publication, Delhi
• Mankiw, N. Gregory. Macro Economics. Macmillan.
• Oliver, Blanchard. Macro Economics, Pearson Education, LPE.

Academic Year: 
2022-2023
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