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SYLLABUS
Macroeconomics Theory
Objectives
• To give the students an overview of contemporary macroeconomic theory and to make the students understand and analyze relationships
among different macroeconomic variables such as national income, employment, consumption, inflation and the quantity of money.
Student will be able to understand the role of government expenditure, taxation and monetary policy in an economy.
S.No. Topics
1. Introduction to Macroeconomics
2. National Income: concepts of National Income
3. GNP and Welfare
4. Inter-temporal and international comparisons of National Income
5. Classical theory of Income, output and employment
6. Keynesian theory of income, output and employment.
7. Consumption function: Absolute income hypothesis
8. Relative income hypothesis
9. Permanent income and life cycle hypothesis
10. Investment function: Keynesian approach
11. Accelerator theory
12. Demand for Money: Quantity theory of money
13. Keynesian approach
14. Boumol’s and Tobin’s contribution
15. Friedman’s restatement of Quantity Theory of Money
16. Supply of Money: Definition of Money and its importance in macro economics
17. Money multiplier and credit creation by commercial banks
18. Derivation, properties and shift in IS and LM curves.
