Page 4 - DECO201_MACRO_ECONOMICS_ENGLISH

SYLLABUS
Macro Economics

Objectives: To understand the concept of Macro Economics and its usefulness in the current economic scenario, for a student to
comprehend its application in the real-world scenario.
Sr. No. Description
1. Introduction to Macro Economics, its importance and scope. National Income: Concepts, Methods and Problems
in measuring National Income, Circular Flow of Income in 2, 3 and 4 sector model.
2. Theories of Income, Output and Employment Determination: Classical and Keynesian; Principle of effective
demand. Classical vs Keynesian. Say’s Law.
3. Consumption function: Concept, Propensity to consume, factors affecting propensity to consume.
4. Investment: Meaning and factors affecting investment decisions.
5. Concept of Multiplier, Types of multiplier and limitation, Static and Dynamic Multiplier.
6. Money-Meaning and Functions, Measures of Money, Factors affecting Demand for Money
7. General Equilibrium of economy: IS–LM curve analysis.
8. Inflation: Meaning, Theories – Demand Pull and Cost Push, Control of inflation, Phillips Curve.
9. Balance of Payments: Introduction and its types, Factor responsible for imbalance in BOP and the India’s
Balance of Payments, Automatic adjustment in BOP
10. Macro Economic policies; Monetary Policy its instruments, transmission and effectiveness, Fiscal Policy its
instruments, transmission and effectiveness.