Semester III - Semester III Principles of Macroeconomics I(4 Credits 1 Nature and Scope of Macroeconomics Distinction between Macro economics and

Semester III - Semester III Principles of Macroeconomics...

This preview shows page 1 - 2 out of 5 pages.

Semester III Principles of Macroeconomics I (4 Credits) 1. Nature and Scope of Macroeconomics: Distinction between Macro economics and Microeconomics, Aggregation and Macroeconomics, Goals and Instruments of Macroeconomics, Supply and Demand in Macroeconomics, Introduction to - Economic growth, GNP gap, booms, recessions, depressions, business cycles, fiscal policy, monetary policy, international economic policy, macro equilibrium, exchange rate, inflation and deflation, stagflation, supply shock and tight money, Brief history and Schools of Macroeconomics – Keynesian, Classical, New Keynesian and New Classical 2. Accounting Output and Income: The Circular Flow Explication - Measuring Output – Gross National Product - Nominal GNP, Real GNP and GNP Deflator, The Two Approaches to measure GNP - The Final Goods Approach and Income Approach, Intermediate goods and value added approach, Flow Statistics and Stock Statistics –Investment –Consumption – Capital stock, GNP, Gross Domestic product, Net National product, National Income and Disposable Income, GNP and Economic Well Being 3. Consumption and Investment: Consumption and Savings – Consumption, Income and Saving, Consumption Function, Marginal Propensity to Consume, Marginal Propensity to Save, Determinants of Consumption, Determinants of Investment, Investment Demand Curve and interest rate 4. Production and Growth: History of Economic Growth and Why Growth Matters, Importance of productivity in growth, Determinants of productivity physical capital, human capital, natural resources and technological knowledge, Economic Growth and Public Policy – importance of saving and investment, diminishing returns and catch-up effect, foreign investment, education, property rights and political stability, free trade, population control and research and development (brief illustration in the context of Indian economic reform) 5. Unemployment and Inflation: Defining and Measuring the Unemployment Rate – Counting of Unemployed – Employed, Unemployed, Labour Force, Discouraged Workers, Okun’s Law, Economic Costs of High Unemployment, Types of Unemployment – Frictional Unemployment and Job Search, Structural Unemployment and Cyclical Unemployment, Voluntary versus Involuntary Unemployment, Sources of Inflexibility in wages – minimum wages, unions and collective bargaining and efficiency wages, Definition and measurement

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture