Macro Economics

Paper Code: 
MBA-322
Credits: 
4
Contact Hours: 
40.00
Max. Marks: 
100.00
Objective: 

• To expose students to basic microeconomic concepts.
• To provide a method/ approach to help draw correct conclusions/ solve economic problems.
• To understand, explain and quantify the mechanism by which the total amount of resources possessed by society is allocated among alternative uses.

8.00
Unit I: 
Introduction to Macro Economics

Introduction to Macro Economics and Basic Concepts of National Income
Macro Economics- Meaning, Scope, Importance and Limitations, Difference between Micro Economics and Macro Economics, National Income- Concept, GNP,NNP,GDP,PCI Methods and difficulties in Measurement of National Income, Index Number- Meaning, Importance and Limitations

8.00
Unit II: 
Output and Employment

Output and Employment
Say’s Law of Market- Classical theory of employment, criticism by Keynes, Keynesian Theory of Employment –the AS-AD Model, Consumption Function- Meaning, Psychological law of consumption, APC, MPC, Factors influencing consumption function.

8.00
Unit III: 
Economic Growth and Development

Economic Growth and Development
Meaning of Economic growth, Factors affecting economic growth, Concept of Development, Stages of Development, Differences between Growth & Development.

8.00
Unit IV: 
Money, Inflation and Deflation

Money, Inflation and Deflation
Meaning and functions of Money, Supply of money: Constituents – Determinants of money supply. Velocity of circulation of money - RBI’s approach to measurement of
Money supply (Liquidity measures). Inflation- Meaning, Causes and Consequences, Types: Demand Pull and Cost Push Inflation, Deflation- Meaning, Causes and Consequences.

8.00
Unit V: 
Business Cycles

Business Cycles
Meaning and Features of Business Cycles, Phases of Business Cycles, Theories of Business Cycles- Innovation theory and Hicks theory.

Essential Readings: 

• Misra, S. K. & V. K. Puri, Indian Economy: Its Development Experience, Himalaya Publishing House, 22nd Edition.
• Ahuja H.L., Macroeconomics Theory & Policy, S. Chand & Company Ltd.New Delhi.
• Agarwal Vanita Macroeconomics: Theory and Policy, Pearson Publications.
• Dwivedi D.N., Macroeconomics Theory & Policy, Tata McGraw-Hill Publication Company Ltd., 2nd Edition.

References: 

• Vaish M. C. Macro Economic Theory, Vikas Publishing House, N. Delhi
• C.S. Barla, Managerial Economics, Malik & Co.

Academic Year: 
2017-2018
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