Macro Economics Theory - II

Paper Code: 
HRG 614
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objective

    The objective of this course is to explain the advanced concepts of different Macro economics variables and also discuss fluctuations of business cycles.

     Course Outcome (COs):

Course

Learning Outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

HRG 614

 

 

 

 

Macro Economic Theory II

 

 

 

 

 
  1. Understand the fundamentals of consumption function and investment function
  2. Analyze the role of investment by understanding the concept of Keynesian multiplier and accelerator
  3. Explain the concept and causes of inflation.
  4. Understand the cause and consequences of business cycle fluctuations.

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, Reading assignments, Team teaching

Learning activities for the students:

Field activities, Presentation, Giving tasks

Observation, Presentation, Report writing

 

 

9.00
Unit I: 
Consumption function
  • Meaning, Attributes of Consumption functions,
  •  Significance of Marginal Propensity to Consume,
  • psychological law of consumption,
  • Determination of consumption functions

 

8.00
Unit II: 
Investment function

• Meaning of Investment, types of investment, • Marginal efficiency of capital, • Marginal Efficiency of Capital and Investment demand curve, • Marginal Efficiency of Capital and rate of interest, • factors affecting marginal efficiency of capital.

10.00
Unit III: 
Concept of Multiplier
  • Working of Multiplier, Assumptions of Multiplier,
  •  Leakages of Multiplier,
  • Significance and Limitation of Multiplier.
  • Accelerator- Meaning, Principles, Difference between Multiplier-Accelerator.

 

9.00
Unit IV: 
Inflation

• Introduction, Meaning, Inflationary Gap, • Demand- Pull and Cost –Push Inflation, • Effects and Control of Inflation.

9.00
Unit V: 
Business Cycles

• Meaning and Nature, • Phases of Business Cycle – Recovery, Propriety, Recession, Depression. • Theory of Trade Cycle – Schumpeter Theory and Keynesian Theory, Criticism

References: 

• Macro Economic analysis - Edward Shapiro, Galgotia Publication, Delhi
• Macro Economic theory - M.L. Seth, Laxmi Narayan Agarwal, Agra
• Macro economic Theory – M.C. Vaish,Wishwa Prakashan, New Delhi
• Macro Economic Theory, H.L.Ahuja, S.Chand & Sons Publication, Delhi
• Dipsey R.G and Cheystal, Principles of economy, Oxford university Press
• Managerial Economic- D M Mithani, Himayala Publishing House, New Delhi

Academic Year: 
2020-2021
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