Coming soon
Macro Economics
Course Objectives:
• Explain the concepts of Macroeconomics and analyze the economy using National Income concepts and Circular flow of Income
• Understand the founding concepts of macroeconomics and Compare the Classical and the Keynesian theories and Associate them with the current macroeconomic concepts
• Utilize the ISLM model to explain the national macroeconomic variables and analyze the effect of Fiscal and Monetary policy measures on them
• Describe the contemporary banking and monetary system, and analyze the role of money, credit, and RBI monetary policy
Course Outcomes (COs):
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Learning outcomes (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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CO 230: Explain the concepts of Macroeconomics and analyze the economy using National Income concepts and Circular flow of Income CO 231: Understand the founding concepts of macroeconomics and Compare the Classical and the Keynesian theories and associate them with the current macroeconomic concepts CO 232: Utilize the ISLM model to explain the national macroeconomic variables and analyze the effect of Fiscal and Monetary policy measures on them CO 233: Describe the contemporary banking and monetary system, and analyze the role of money, credit, and RBI monetary policy CO 234: Examine the causes and types of Inflation and Identify the consequences of Inflation, Apply the macroeconomic concepts in understanding unemployment level and Outline the role of exchange rates and Economic policies in development of an economy. |
Approach in teaching: Interactive Hours, Discussion, Tutorials, Reading assignments, Demonstration, Team teaching
Learning activities for the students: Self-learning assignments, Effective questions, Simulation, Seminar presentation, Giving tasks, 3D models |
Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects |
Introduction to 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
IS-LM model : 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
Money: 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
1. Froyen, R.P. (2011): Macroeconomics-theories and policies (8th ed.) . Pearson:
2. Dornbusch and Fischer (2010). Macroeconomics (9thed.). Tata McGraw Hill
3. N Gregory Mankiw (2010). Macroeconomics (7thed.). Worth Publishers
4. Olivier Blanchard, Macroeconomics (2009). (5thed.) Pearson
