100%(1)1 out of 1 people found this document helpful
This preview shows page 1 - 2 out of 5 pages.
Semester IIIPrinciples of Macroeconomics I(4 Credits)1. Nature and Scope of Macroeconomics: Distinction between Macro economics andMicroeconomics, Aggregation and Macroeconomics, Goals and Instruments ofMacroeconomics, Supply and Demand in Macroeconomics, Introduction to - Economicgrowth, GNP gap, booms, recessions, depressions, business cycles, fiscal policy, monetarypolicy, international economic policy, macro equilibrium, exchange rate, inflation anddeflation, stagflation, supply shock and tight money, Brief history and Schools ofMacroeconomics – Keynesian, Classical, New Keynesian and New Classical2. Accounting Output and Income: The Circular Flow Explication - Measuring Output –Gross National Product - Nominal GNP, Real GNP and GNP Deflator, The Two Approachesto measure GNP - The Final Goods Approach and Income Approach, Intermediate goods andvalue added approach, Flow Statistics and Stock Statistics –Investment –Consumption –Capital stock, GNP, Gross Domestic product, Net National product, National Income andDisposable Income, GNP and Economic Well Being 3. Consumption and Investment: Consumption and Savings – Consumption, Income andSaving, Consumption Function, Marginal Propensity to Consume, Marginal Propensity toSave, Determinants of Consumption, Determinants of Investment, Investment Demand Curveand interest rate 4. Production and Growth: History of Economic Growth and Why Growth Matters,Importance of productivity in growth, Determinants of productivity physical capital, humancapital, natural resources and technological knowledge, Economic Growth and Public Policy– importance of saving and investment, diminishing returns and catch-up effect, foreigninvestment, education, property rights and political stability, free trade, population controland 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 – FrictionalUnemployment and Job Search, Structural Unemployment and Cyclical Unemployment,Voluntary versus Involuntary Unemployment, Sources of Inflexibility in wages – minimumwages, unions and collective bargaining and efficiency wages, Definition and measurement