MACRO-ECONOMIC THEORY II(THEORY)

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

Course Outcomes (COs):

Course Outcomes

Learning and teaching strategies

Assessment Strategies

Upon successful completion of this course, the student will be able to

CO221:Students will analyze the fundamentals of consumption function and psychological law of consumption

CO222:Student will examine the investment function and the role of Marginal efficiency of the capital in investment decision.

CO223:Students will evaluate the role of investment by understanding the concept of Keynesian multiplier and accelerator

CO224:Students will explore and evaluate the concept and causes of inflation.

CO225:Assess the consequences of business cycle fluctuations.

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, Reading assignments, Team teaching

Field activities, Presentation, Giving tasks

Observation, Presentation, Report writing

 

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.   ,

·          

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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: 
  • 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
  • Mithani. D.M, Money,Banking,International Trade and Public Finance., Himalayan Publication, New 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

 

References: 

SUGGESTED READINGS

  • Dipsey R.G and Cheystal, Principles of Economy, Oxford university Press
  • Edward Shapiro ,Macro Economic Analysis , Galgotia Publication, Delhi
  • Mankiw, N. Gregory. Macro Economics. Macmillan.
  • Oliver, Blanchard. Macro Economics, Pearson Education, LPE.

 

E-READINGS

 

JOURNALS

  • Yojana,A development Monthly, Government of India Publication
  • Microeconomics and Macroeconomics, Scientific and Academic Publishing
  • Economics, De Gruyter Open Access
  • International Journal of Economics and Business Research, Inderscience Publisher

 

Academic Year: 
2022-2023
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