Macro Economic Analysis

Paper Code: 
ATG / BSG / FSG 223
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 
  1. Acquire knowledge about  the concept and theories of Macroeconomics 
  2. Gain an understanding about the macroeconomic variables including national income, inflation and trade cycle.

 

Course Outcomes (Cos):

 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

ATG / BSG / FSG 223

 

Macro Economic Analysis (Theory)

 

The students will  –

CO43: Examine the fundamentals of macroeconomics.

CO44: Critically evaluate the classical theory of income and employment.

CO45: Appraise the Keynesian approach to income output and employment, consumption function, investment function, multiplier and accelerator.

CO46: Analyze the national income and estimate NI through measurement of national income.

CO47: Interpret the inflationary trends by applying the concepts of inflation.

CO48: Analyze the  stages of trade cycle and illustrate the concept and distinguish theories of trade cycle.

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 Numerical problems in tutorials, Assignments,

Class Presentation

 

18.00
Unit I: 

Macro Economics-  Definition, Nature, Scope, Types of Macro Economics Analysis-Macro Static, Macro Dynamic and Comparative Static 

Classical theory of Employment : Meaning ,Type of unemployment, Assumption, Say’s Law of Market, Explanation of classical theory of employment & criticism

 

18.00
Unit II: 

Keynesian Theory of employment: Introduction, Assumption, Effective demand, Explanation, Criticism, Comparison between Keynesian and classical theory

Consumption function – Meaning, Attributes, Factors affecting consumption function and psychological law of consumption.

 

18.00
Unit III: 

Investment functions: Meaning, Types of investment, Determinants of Investment, Factors affecting MEC, MEC and ROI, Investment demand curve.

Multiplier – Assumptions of Multiplier, Working of Multiplier, significance and limitations of multiplier,Leakages of Multiplier.

Accelerator- Meaning, Principles, Multiplier-Accelerator interaction           

18.00
Unit IV: 

Inflation: Meaning, definition, cost- push inflation, demand- pull inflation, inflationary gap, measures to control inflation, effects of inflation.

Trade Cycle- meaning, Stages of trade cycle, theories of trade cycle; Keynesian theory of business cycle, Innovation theory of business cycle

 

18.00
Unit V: 

National Income Analysis –Definition, Importance of national income calculation, Methods of measuring National Income, Calculation of National Income, Difficulties in measuring National Income, National income and Economic Welfare

 

Essential Readings: 
  • 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
  • Macro Economic analysis - Edward Shapiro, Galgotia Publication, Delhi

 

Academic Year: 
2021-2022
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