Macro Economics

Basic Concepts of Macroeconomics, major concerns, scope, importance of macro economics, role of government in macro-economy, interdependence of macro and micro economics, goals and importance of macroeconomics; Circular flow of income; Measurement of Macroeconomic Aggregates: National Income Accounts, Gross Domestic Product, National Income, Personal and Personal disposable income; Multiplier effect of investment; Introduction to fiscal and monetary policy

Classical theory of income and employment: Labour market Equilibrium, Goods market equilibrium, Quantity Theory of Money.
Keynesian theory of Income and employment : simple Keynesian model, components of aggregate demand, equilibrium income, changes in equilibrium

Properties of IS-LM curves, factors affecting the position and slope of IS-LM curves, determination of equilibrium income and interest rates, effect of monetary and fiscal policy, relative effectiveness of monetary and fiscal policy, crowding out, composition of output and policy mix, policy mix in action

Functions of money, quantity theory of money, determination of money supply and demand, H theory of money multiplier, indicators and instruments of monetary control.

Inflation: meaning, demand and supply side factors, consequences of inflation, anti-inflationary policies, natural rate theory, monetary policy-output and inflation, Phillips curve (short run and long run)
Open Economy: brief introduction to BoP account, market for foreign exchange and exchange rate, monetary and fiscal policy in open economy