MACRO ECONOMICS

Paper Code: 
CFSG 203
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes (COs):

Course Outcomes

Learning and teaching strategies

  
 

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

 

CO36:Analyse the fundamentals of macroeconomics and examine the concept of the circular flow of income

CO37: Critically evaluate the LS-LM framework and principle of effective demand

CO38:Appraise the working of multiplier and accelerator for income propagation

CO39: Assess the components of national income and methods of calculating National Income

CO40:Analyse the factors affecting inflation and movement in trade cycle

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases Demonstration, Power point presentation.    

Learning activities for the students:                              Self learning assignments, Effective questions, Seminar presentation, Live practical problems analysis

  

 

12.00
Unit I: 
Introduction

 Concepts, Scope, Types of Macro Economics-Macro Static, Macro Dynamic and Comparative Static
 Indicators of Economic Growth
 Difference between growth and Development
 Circular Flow of Income in two sectors, three sector, and four sector economy

12.00
Unit II: 
Keynesian Theory of Income and Employment

 Effective demand: aggregate demand & aggregate supply. determination of effective demand and equilibrium.
 IS–LM framework – product & money market equilibrium,
 Psychological Law of Consumption

12.00
Unit III: 
Investment and Multiplier

 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.
 Multiplier: Concept, working of Multiplier & Leakages of Multiplier. Meaning of Accelerator, Difference between Multiplier and Accelerator

12.00
Unit IV: 
Inflation and Trade Cycle

 Inflation: Introduction, Meaning, Types of Inflation, Inflationary Gap, Demand- Pull and Cost –Push Inflation, Phillip’s Curve, Effects, Causes and Control of Inflation.
 Trade Cycle: Different Stages of Trade cycle

12.00
Unit V: 
National Income

 Components of National Income,
 Determination of National Income,
 Methods of Measuring National Income, Difficulties in Measuring National Income

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
• T. R Jain, B.D Majhi, KartikArora ,Macroeconomics, VK Publications, New Delhi
• T. R Jain, O. P Khana, Macroeconomics Analysis and Policy, VK Publications, New Delhi
• Macro Economic theory - M.L. Seth, Laxmi Narayan Agarwal, Agra
• Macro economic Theory – M.C. Vaish,WishwaPrakashan, New Delhi

References: 

• Dipsey R.G and Cheystal, Principles of Economy, Oxford university Press
• Edward Shapiro ,Macro Economic Analysis , Galgotia Publication, Delhi
• Mithani. D.M, Money,Banking,International Trade and Public Finance., Himalayan Publication, New Delhi
• Mankiw, N. Gregory. Macro Economics. Macmillan.
• Oliver, Blanchard. Macro Economics, Pearson Education, LPE.

Academic Year: 
2023-2024
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