Course

OPEN ELECTIVES-UG (Arts , Humanities and Commerce)

Unit 1

Macro Economics emergence – meaning and scope – different sectors of the economy – Micro and Macro Economics – some basic concepts of Macro Economics – Stock – Flow – some Macro Economics identities – GDP, GNP, NDP, NNP, Per capita Income, Personal Income, Personal Disposable Income – Circular Flow of Income.

Unit 2

National Income – Methods for Measuring National Income – product method, income method and expenditure method – precautions of national income calculation – GDP and welfare – nominal GDP and real GDP – Concepts and their relationships – GDP deflator – Consumer Price Index.

Unit 3

Meaning and Components of Aggregate Demand – aggregate demand in a two-sector model – aggregate supply – components of aggregate supply – consumption function – types of propensities to consume – average propensity to consume and marginal propensity to consume – saving function – types of propensities to save – average propensity to save and marginal propensity to save – investment function induced investment and autonomous investment.

Unit 4

Excess demand – reasons for excess demand – impact of excess demand – deficient demand – reasons for deficient demand – impact of deficient demand – measures to control excess and deficient demand – measures to correct excess demand and deficient demand.

Unit 5

Meaning of government budget – objectives of government budget – components of budget – budget receipts – revenue receipts and capital receipts – budget expenditure – revenue and capital expenditure – balanced, surplus and deficit budget – measures of government budget.

Course Objective:

This course is designed to make the students aware of the theoretical aspects of macroeconomics and provides foundation of some advanced issues and policies. It attempts to discuss the functional relationships between economic aggregates and helps to understand the overall structure of the economy in a theoretical perspective.

Course Outcomes:

The students will be able to:

CO1: To identify the macro economic problems and analyse the various features of macroeconomic identities, per capita income, circular flow of income etc.

CO2: To analyse the basic concepts of national income measurements, welfare concepts, and consumer price index.

CO3: To learn the major perspectives on what determines performance of the overall economy and analyse the components of aggregate demand.

CO4: To familiarize the concepts of excess demand how it measures to control excess and deficient demand.

CO5: To analyze the meaning and objectives of government budget and suggest relevant policies to save the economy when deficit budget situation.

Textbooks:

1. Gregory Mankiw – Principles of Macroeconomics – Cengage Learning
2. Richard Froyen – Macroeconomics: Theories and Policies – Pearson Education.
3. Eugene Diulio – Schaum’s Outline of Macroeconomics – McGraw Hill

References:

1. Shapiro, Edward – Macroeconomic Analysis – Galgotia Publications
2. Sampat Mukherjee – Analytical Macroeconomics: From Keynes to Mankiw – New Central Book Agency
3. Andrew Abel – Macroeconomics – Pearson