Principles of Macroeconomics – व्यापक अर्थशास्त्र के सिद्धांत

Program Class: Certificate/ BA

Year: First

Semester: Second

Subject: Economics

                         Course Title: Macro Economics

Course Learning Outcomes:

On completion of this course, learners will be able to:

·      Students are able to explain national income, comprehend calculation methods of national income, and concepts related to national income.

·      Students are able to comprehend classical theory of employment and the Keynesian approach.

·      Students are able to comprehend the concept of multiplier and it’s working.

·      Students are able to understand the relationship between Inflation and employment

·      Students are able to relate factors determining national income such as consumption, saving and investment.

·      Students are able to analyze different phases of trade cycle, demonstrate various trade cycle theories understand the impact of cyclical fluctuation on the growth of business, and lay policies to control trade

Credits: 6

Core Compulsory

Max. Marks: –25+75

Min. Passing Marks: 33

Unit

Topics

I

Introduction: What is macroeconomics? Macroeconomic issues in an economy. Macro vs. Micro Economics, Limitations of Macroeconomics, Introduction to National Income. Concepts of GDP.

II

National Income Accounting: Meaning and concepts of National Income. Measurement of National Income, expenditure, product or value added methods, nominal and real income, Problem in measuring national income.

III

Circular flow of Income: Circular flow of income in two, three and four-sector Green Accounting.

IV

Classical theory of Employment: Say’s law of Market, Keynes objection to the classical theory; Aggregate Demand and Aggregate supply function, Theory of Effective Demand; consumption function, Average and Marginal propensity to consume.

V

The Investment Multiplier and its Effectiveness in developing countries. Theory of investment – Autonomous and induced Investment, Determinants of Investment, Marginal efficiency of capital, Principle of Accelerator.

VI

Rate of Interest: Classical, Neo-Classical and Keynesian Theories of Interest. Indeterminateness in Liquidity Preference Theory.

VII

Modern theory of Interest Rate Determination – Derivations of the IS and LM functions, IS – LM and aggregate demand; Shifts in the AD Curve.

VIII

Inflation and Unemployment – Concept of inflation, Types of inflation, relationship between inflation and unemployment. Phillips Curve in short run and long run.