: MACRO-ECONOMICS (Revised Course)(FROM JUNE 2003)
On account of the growing influence and involvement of the state in economic fields,
macroeconomics has become a major area of economic analysis in terms of theoretical,
empirical as well as policy-making issues. Macroeconomics has an extensive, substantive
as well as methodological content. It deals with the functioning of the economy as a
whole, including how the economy's total output of goods and services and employment
of resources is determined and what causes these totals to fluctuate. The canvass of the
study is the whole rather than the part because what is true of parts is not necessarily true
of the whole. The paper entitled "Macroeconomics" is designed to make undergraduate
student aware of the basic theoretical framework underlying the field of macroeconoics.
SECTION - I
1. Introduction :
1.1 Macro-economics - meaning, nature and scope.
1.2 Importance and limitations of macro-economics.
2. National Income :
2.1 Concepts - GDP and NDP, GNP and NNP, income at factor cost and market price
(current and constant prices), personal Income, Disposable and percapita Income.
2.2 Measurement of National Income - Methods and problems.
3. Output and Employment :
3.1 Say's law of market - Classical theory of employment- Criticism by Keynes.
3.2 Keynesian theory of Employment - Principle of Effective demand, consumption
Function, Average and marginal propensity to consume, Factors influencing
consumption function, Numerical problems.
SECTION - II
4. Saving and Investment
4.1 Macro approach - Saving and investment, average and marginal propensity to saving, Paradox of saving, Numerical problems.
4.2 Theory of investment - Autonomuos and induced, investment, marginal efficiency of capital, Investment multiplier -concept and limitations, Numerical problems.
4.3 Keynesian approach : saving and investment.
5. Trade Cycle
5.1 Nature and characteristics of Trade Cycle
5.2 Phases of Trade Cycle
5.3 Theories of Trade Cycle : Hautrey's monetary theory, Hayek's over-investment theory
5.4 Keymes view on Trade Cycle
5.5 Control of Trade Cycle.
6. Economic Growth
6.1 Meaning and Indicator's of Economic Growth
6.2 Sources of growth
6.3 Growth models - Harrod and Domar model, Neoclassical growth models.
BASIC READING LIST
Ackley, G. (1976), Macroeconomics : Theory and Policy, Macmillan Publishing
Company, New York.
Ahuja HL (2002) Macroeconomics : Theory and Policy, S. Chand & Co. Ltd., New
Day, A. C. L. (1960), Outline of Monetary Economics, Oxford University Press,
Gupta, S. B. (1994), Monetary Economics, S. Chand and Co., Delhi.
Heijdra, B. J. and F. V. Ploeg (2001), Foundations of Modern Macroeconomics, Oxford University Press, Oxford.
Lewis, M. K. and P. D. Mizan (2000), Monetary Economics, Oxford University Press,New Delhi.
Shapiro, E. (1996), Macroeconomics Analysis, Galgotia Publications, New Delhi.
Dillard, D. (1960), The Economics of John Maynard Keynes. Crossby Lockwood and
Hanson, A. H. (1953), A Guide to Keynes, McGaw, Hill, New York.
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