Macro Economic Theory -II

Paper Code: 
BSG 614
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
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

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

10.00
Unit II: 
Investment function

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

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

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

10.00
Unit V: 
Business Cycles

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: 

Macro Economic analysis - Edward Shapiro, Galgotia Publication, Delhi
Macro Economic theory - M.L. Seth, Laxmi Narayan Agarwal, Agra
Macro economic Theory – M.C. Vaish,Wishwa Prakashan, New Delhi

References: 

Macro Economic Theory, H.L.Ahuja, S.Chand & Sons Publication, Delhi
Dipsey R.G and Cheystal, Principles of economy, Oxford university Press

Academic Year: 
2017-2018
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