Macroeconomics

Macroeconomics is a very basic Economics subject. It is part of curriculum in Economics, Commerce, Management and Engineering programs. This course is perfect blend with commerce, as both lead to better understanding of Local, National and Global Economy. Many concepts and theories that they learn from commerce perspective, this course will augment to that knowledge. It helps the student to mature and deepen the understanding of macroeconomic phenomenon. This course helps to understand Policy framework and its implications on the economy. This subject aids in understand different school of thoughts in Macroeconomics. It acts as a bridge between the understandings of Macro Economics at High School level to application of the subject in events across the Globe.

Week

Module No

Title of the Module

1

1

Introduction to macroeconomics and its concepts:

Types of macroeconomic variables like consumption expenditure, savings, investment, national income and its components. Concept of stock and flow variable

2

Circular flow of money in two sector, three sector & open economy. Development of macroeconomics since 17th Century.

3

Aggregate Supply & aggregate demand curve. Equilibrium in AS & AD in long run

4

Methods of national income accounting

2

5

Introduction to Fiscal & Monetary Policy- Its Objectives and instruments of Fiscal Policy.

6

Objectives & instruments of Monetary Policy. Effect of these instruments on the economy.

7

IS-LM Curve- The Goods market & IS- curve

8

The Money market & LM Curve.

3

9

Equilibrium in IS-LM Curve, crowding effect and effects of Tax, Money supply on these curves.

10

Consumption function & Aggregate Demand

11

Theories of consumption- Psychological and relative theories.

12

Life Cycle and Permanent Income Hypothesis.

4

13

Multiplier Theory- Simple Investment & Govt. Budget multiplier

14

Tax Multiplier & Foreign Trade Multipliers.

15

Effects of Multipliers with case studies.

16

Introduction to Inflation and various definitions.

5

17

Types of inflation and its measurement.

18

Inflation and interest rate.

19

Introduction to Unemployment- Types of unemployment.

20

Phillips curve- Static and Dynamic

6

21

Sacrifice ratio and role of expectations

22

Tax Regime in India and Laffer Curve

23

J. B. Says Law and capitalistic economy

24

Classical approach to labour market and equilibrium in the economy.

7

25

Keynesian theory and equilibrium.

26

Comparison of Classical and Keynesian theory.

27

Flow of goods & capital in an open economy

28

Saving Investment relationship- Classical and Swedish approach.

8

29

Introduction to Exchange Rates and concepts

30

Theories of Exchange Rate determination

31

Concept of Balance of Payments and Forex Reserves

32

Mundell- Fleming Model- I

9

33

Mundell- Fleming Model- II

34

Exchange Rate and Interest rate differentials

35

Investment function and types of investment.

36

Determinants of Investments, MEC and MEI

10

37

Theories of Investment

38

Investment sub- sectors- Business Fixed, Residential and inventory Investment.

39

Money- Functions & Types

40

Theories of Demand for money-Pre Keynesianism

11

41

Liquidity Preference theory

42

Theories of Demand for money-Post Keynesianism

43

Money multiplier and its components

44

Supply of money and stock of money supply

12

45

RBI & its objectives

46

Credit Disbursement policy and its regulation

47

Business Cycles- an Overview

48

Types of Business Cycles