Macro Economic Theory -II (Theory)

Paper Code: 
ATG/BSG/FSG/BSR/FSM/HRG/IBG 614
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The objective of this course is to explain the advanced concepts of Macroeconomics and various aspects of consumption, investment function, multiplier concept and business cycle.

COURSE OUTCOMES (COs):

Course

Learning outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

ATG/BSG/FSG/

BSR/FSM

/HRG/IBG 614

Macro Economic Theory II

 

CO 1:Understand the fundamentals of consumption function and investment function

CO 2:Analyze the role of investment by understanding the concept of Keynesian multiplier and accelerator

CO 3:Explain the concept and causes of inflation.

CO 4: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

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects, Case Study Analysis

 

 

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.
8.00
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.
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.
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: 

 

 

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,WishwaPrakashan, New Delhi
  • Macro Economic Theory, H.L.Ahuja, S.Chand& Sons Publication, Delhi
  • Dipsey R.G and Cheystal, Principles of economy, Oxford university Press
  • Managerial Economic- D M Mithani, Himayala Publishing House, New Delhi

 

Academic Year: 
2020-2021
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