Macro Economic Theory -II

Paper Code: 
COM 604
Credits: 
3
Contact Hours: 
45.00
Objective: 

To explain the advanced concepts of Macroeconomics and various aspects of consumption, investment function, multiplier concept and business cycle.

7.00
Unit I: 

Consumption function – Meaning, Attributes of Consumption functions, Significance of Marginal Propensity to Consume, Determination of consumption functions

10.00
Unit II: 

Investment function – Meaning 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.

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

Essential Readings: 
  1. Macro Economic analysis - Edward Shapiro, Galgotia Publication, Delhi
  2. Macro Economic theory - M.L. Seth, Laxmi Narayan Agarwal, Agra
  3. Macro economic Theory – M.C. Vaish,Wishwa Prakashan, New Delhi
  4. Macro Economic Theory, H.L.Ahuja, S.Chand & Sons Publication, Delhi
  5. Dipsey R.G and Cheystal, Principles of economy, Oxford university Press
Academic Year: 
2018-2019
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