Jaypee Business School A Constituent of Jaypee Institute of Information Technology A-10, Sector 62, NOIDA, 201 307 India Course Description

Course Title: Macroeconomics Course Code: 12PCGM01 Credits: 3 Session Duration: 90 Minutes Name of the Faculty: Dr. Jhumur Sengupta Email ID: jhumur.sengupta@jiit.ac.in Introduction Macroeconomics deals with the structure and performance of whole economies. In this course we will describe and analyze the factors that influence aggregate economic outcomes such as growth in national output and income, unemployment and inflation. Throughout the course, we will develop several micro-founded macroeconomic models, and the role of government policies to influence macroeconomic outcomes. Objectives: To provide the students with an introduction to the basic macroeconomic principles; To enable students to appreciate the workings of real and money markets and the nature of equilibrium in each market; To emphasize the role of macroeconomic policies that affect internal and external deficits, inflation and growth of per capita income. Text Book: Rudiger Dornbusch, Stanley Fisher and Richard Startz, Macroeconomics (Tenth Edition.), Tata Mcgrawhill Edition, 2004 Additional Readings and References: • Macroeconomics, Robert J. Gordon, 12th Edition, PHI • MacroEconomics, Samuelson, William D. Nordhaus, 19th Edition, Mc Graw Hill Session Plan Sessi on 1 Contents National Income Accounting: The production of output and payments to factors of production, Outlays of components of demand, Some important identities, Measuring Gross Domestic Product Income and Spending: Class Activity Textbook: Rudiger Discussion Dornbusch, Stanley Fisher And and Richard Startz, Exercise Macroeconomics (Tenth Edition.), Tata Mcgrawhill Edition, 2004 Chapter 2 Textbook: Rudiger Discussion Readings

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Putting aggregate supply and demand together in long run. 2004 Chapter 6 And Exercise Discussion And Exercise Discussion And Exercise Discussion And Exercise 8-9 10 11 Aggregate Supply: Wages. The money market and the LM curve. Monetary and Fiscal Policy: Monetary policy.). Stagflation. Inflation and indexation: Inflation-proofing the economy. Tata Mcgrawhill Edition. Equilibrium in the goods and the money markets. Dornbusch. The Multiplier. A formal treatment of IS-LM model. Stanley Fisher and Richard Startz. Fiscal Policy and crowding out. The costs of inflation. Tata Mcgrawhill Edition.). Inflation. Tata Mcgrawhill Edition. 2004 Chapter 10 Textbook: Rudiger Dornbusch. Money.). Macroeconomics (Tenth Edition. Tata Mcgrawhill Edition. Full employment. Stanley Fisher and Richard Startz. Tata Mcgrawhill Edition.). Macroeconomics (Tenth Edition. Deriving the aggregate demand schedule. Stanley Fisher And and Richard Startz. Expected inflation and the inflation expectations . Supply-side economics. 2004 Chapter 11 Textbook: Rudiger Dornbusch. Interest. The aggregate supply curve and the price adjustment mechanism. The costs of unemployment. The aggregate demand curve. Supply shocks. 2004 Chapter 7 . The Budget 3 4-5 6-7 Aggregate Supply and Demand: The aggregate supply curve. Stanley Fisher and Richard Startz. 2004 Chapter 9 Textbook: Rudiger Dornbusch. The Composition of output and the policy mix. Stanley Fisher and Richard Startz. The wage-unemployment relationship: Why are wages sticky? From Phillips Curve to the aggregate supply curve. Macroeconomics (Tenth Edition. Prices and Unemployment: Inflation and unemployment. HBS Case Discussion The Anatomy of Inflation and Unemployment: Unemployment. The rational expectations revolution.). Macroeconomics (Tenth Edition. Aggregate demand policy under alternative supply assumptions. Tata Mcgrawhill Edition. The Consumption function and aggregate demand. Is a little Discussion And Exercise Textbook: Rudiger Discussion Dornbusch. The Government sector. Macroeconomics (Tenth Edition.Aggregate demand and equilibrium output.). The anatomy of unemployment. The policy mix in action. Exercise Macroeconomics (Tenth Edition. 2004 Chapter 5 Textbook: Rudiger Dornbusch. and Income: The goods market and the IS curve.Augmented Phillips Curve. Stanley Fisher and Richard Startz.

Edition. Stanley Fisher money multiplier. Chapter 12 Perfect capital mobility and flexible exchange rates. money: Theory. The instruments of and Richard Startz. Stanley Fisher functions of money. Trade in goods. 2004 Chapter 14 The Demand for Money: Textbook: Rudiger Components of the money stock. Tata Mcgrawhill Edition. Investment subsectors. Macroeconomics (Tenth Edition. Further aspects of consumption behavior. and Richard Startz. Market equilibrium. Money and Credit: Textbook: Rudiger Money and stock determination: The Dornbusch. The demand for and Richard Startz. monetary control. HBS Case Discussion Discussion And Exercise Discussion And Exercise 1415 Discussion And Exercise 1617 Discussion And Exercise 1819 Discussion And Exercise 20 7.12 inflation good for the economy? Political business cycle theory Consumption and Saving: The life-cycle . Business fixed. Tata Mcgrawhill Mundell-Fleming model: Perfect capital Edition.). 2004 Chapter 15 The Fed.).permanent-income theory of consumption and saving. The exchange rate in the long run. Chapter 16 Money. Macroeconomics (Tenth Investment and aggregate supply. Stanley Fisher and Richard Startz. The money multiplier Macroeconomics (Tenth and bank loans. Which targets for the Fed? International Linkages: Textbook: Rudiger The balance of payments and exchange Dornbusch. The Macroeconomics (Tenth income velocity of money. Stanley Fisher of investment. Evaluation Details . 13 Textbook: Rudiger Dornbusch. residential and inventory. 2004 Chapter 13 Investment Spending: Textbook: Rudiger The stock demand for capital and the flow Dornbusch. Tata Mcgrawhill Edition. Edition. Tata Mcgrawhill stock and control of the interest rate. The Dornbusch. Edition. and Macroeconomics (Tenth the balance of trade. 2004 mobility under fixed exchange rates.). Control of the money Edition. Empirical Evidence.and Richard Startz. Tata Mcgrawhill Edition. Stanley Fisher rates. The Edition. Capital mobility.). Credit and Interest rates. Consumption under uncertainty: The modern approach.). 2004 Money stock and interest rate targets.

Mid-Term Test 30% c. . Teacher's Assessment 30% • Project 20% • Assignment 10% b. They will be required to do these assignments individually and submit the same for evaluation. EndTerm Test 40% Assignment (10%) Students will be asked to use MS Excel and other statistical packages to solve assignment problems.a. Step 4: Incorporate changes in the project report on the basis of feed back given by the faculty and submit the group project report in time. Step 3: Work on group project and submit only power point slides. Project (20%) Step 1: Decide the topic of Group Project. Step 2: Get approval of course coordinator before deadline.

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