Macro Economics

Paper Code: 
MBA- 322
Credits: 
4.0
Contact Hours: 
40.00
Max. Marks: 
100.00
Objective: 
  • To expose students to basic microeconomic concepts.
  • To provide a method/ approach to help draw correct conclusions/ solve economic problems.
  • To understand, explain and quantify the mechanism by which the total amount of resources possessed by society is allocated among alternative uses.
8.00
Unit I: 
Introduction to Macro Economics and Welfare Economics

Macro Economics- Meaning, Scope, Importance and Limitations, Difference between Micro Economics and Macro Economics, National Income- Concept, GNP,NNP,GDP,PCI Methods and difficulties in Measurement of National Income, Index Number- Meaning, Importance and Limitations

8.00
Unit II: 
Output and Employment

Say’s Law of Market- Classical theory of employment, criticism by Keynes, Keynesian Theory of Employment –the AS-AD Model, Consumption Function- Meaning, Psychological law of consumption, APC, MPC, Factors influencing consumption function

8.00
Unit III: 
Economic Growth and Development

Meaning of Economic growth, Factors affecting economic growth, Concept of Development, Stages of Development, Differences between Growth & Development

10.00
Unit IV: 
Money, Inflation and Deflation

Meaning and functions of Money, Supply of money: Constituents – Determinants of money supply. Velocity of circulation of money - RBI’s approach to measurement of
money supply (Liquidity measures). Inflation- Meaning, Causes and Consequences, Types: Demand Pull and Cost Push Inflation, Deflation- Meaning, Causes and Consequences

6.00
Unit V: 
Business Cycles

Meaning and Features of Business Cycles, Phases of Business Cycles, Theories of Business Cycles- Innovation theory and Hicks theory

Essential Readings: 
  • Misra, S. K. & V. K. Puri (2010), Indian Economy: Its Development Experience, Himalaya Publishing House, Mumbai.
  • Ahuja H.L. (2008), Macroeconomics Theory & Policy, S. Chand & Company Ltd., Ram Nagar, New Delhi.
  • Bhole L.M. (1999), Financial Institutions & Markets, Tata McGraw-Hill Publication Company Ltd., Delhi.
  • Jingan M.L. (2002) Macro Economic Theory, Vrinda Publication,Delhi
References: 
  1. Vaish M. C. (2002) Macro Economic Theory, Vikas Publishing House, N. Delhi
  2. Keynes, J.M. (1936), The General Theory of Employment, Interest and Money,
  3. Lucas, R. (1981), Studies in Business Cycle Theory, MIT Press, Cambridge, Massachusetts.
  4. C.S. Barla, Managerial Economics, Malik & Co., 2009