Course

Unit 1

Introduction to Macroeconomics

Meaning- nature, and scope of macroeconomics- distinction between microeconomics and macroeconomics- methods used in macroeconomic analysis- basic macroeconomic concepts.

Unit 2

Introduction to Macroeconomics

Meaning- nature, and scope of macroeconomics- distinction between microeconomics and macroeconomics- methods used in macroeconomic analysis- basic macroeconomic concepts.

Unit 3

National Income Accounting

Concept and definition of national income- various concepts of national income- approaches to Gross National Product- methods of measuring national income- difficulties in national income estimation- importance of national income analysis- circular flow of income- green accountingsocial income accounting-concept of Green GDP.

Unit 4

Theory of Employment and Consumption and Investment Function Classical theory of employment basic assumptions- Say’s Law of Markets – Keynes’ criticisms of classical theory- Short run and Long run consumption functions- APC-MPC- APS-MPSFundamental psychological law of consumption- Factors influencing consumption function-Investment function- Types of Investment- Factors determining Investment- Investment Multiplier- Importance and critique.

Unit 5

Money and Supply of Money

Money and Functions- Quantity theory of money: Fisher’s equation and Cambridge equation- Keynesian theory of money and prices- Supply of Money- Concept of money in modern economy credit creation and measures to control credit creation- quantitative and qualitative measures.

Unit 6

 Inflation and Trade Cycle

Inflation: Types and meaning- Cost –push and demand pull theories of inflation- Deflation and stagflation-Monetary and Fiscal policies- Role of Monetary and Fiscal policies for Stabilization-Trade Cycles: Meaning- Types- Phases- Theories of Trade Cycles- Hawtrey’s monetary theory-Keynes view on Trade cycle –Schumpter’s Innovation Theory.

Course objectives

1. Explicate the impact of macro economics variables /concepts on their daily lives and analyse the current economic condition and relate the theory with practical scenario.
2. Compute National Income, Private Income, Personal Income and Personal Disposable Income by using different methods.
3. Justify the role of money and banking in the economy as well as its relationship with exchange rate and trade.
4. Use basic macroeconomic principles to analyze how changes in fiscal policy (taxes, government spending and changing deficits/surpluses) can bring stability in the economy.
5. Illustrate monetary policy& fiscal policy and its relationship with unemployment and inflation.

Course Outcome

By the end of the course the learner would be able to:

1. Explain the meaning, nature, scope, and importance of macroeconomics, and distinguish between microeconomics and macroeconomics.
2. Analyze the concepts and measurement of national income, including GNP, GDP, green accounting, and Green GDP.
3. Evaluate the classical and Keynesian theories of employment, consumption behavior, and investment decisions.
4. Understand the functions of money, theories of money, supply of money, and the role of central bank credit control measures.
5. Examine the causes and effects of inflation, stabilization policies, and the nature and theories of trade cycles.

Teaching Methodology: Lecture, Discussion, Assignment, Seminar, class projects and Discussion.

Reference BookS:

1. Heijdra and U.P Fredrick (2001), Foundation of Modern Macro Economics, Oxford University press, New Delhi.
2. Robert, J.Gordon (2011), Macro Economics, PHI Learning, Pvt. Ltd., New Delhi.
3. Jhingan, M. L. (2003). Advanced economic theory: Micro and macro economics  (12th ed.). Vrinda Publications.
4. Mishra,S.K. and V.K. Puri, Modern Macroeconomics Theory
5. M.C.Vaish, Macro- Economic Theory

Research Article References:

1. “Effects of trade liberalization on growth and welfare through basic and applied”-  Journal of Macroeconomics. Volume 62, December 2019, 103058.
2. “Public debt and economic growth: Is there a causal effect”-Journal of Macroeconomics Volume 41, September 2014, Pages 21-41