SESSION PLAN NAME OF COURSE-MACRO-ECONOMICS FOR MANAGERS. Name of Course 1 2 Description of Course MBA-I/ Sem.

II/20 hours MacroEconomics for Managers

Content of Course Session 1-2

Session 3-4

N.B.:Chapter numbers refer to the text-book (by Dornbusch and Fischer)mentioned in 4 below.(Figures in bracket indicate specific session number.) National Income Accounting(DFS,Chapter 2)-The Production of Output and Payments to Factors of Production(1);Outlays and components of Demand(1);Some Important Identities(2); Measuring GDP(2);Inflation and Price Indices(2) ASSIGNMENT 1 Introduction(DFS, Chapter 1)-MacroEconomics encapsulated in three models(3) Aggregate Supply and Demand(DFS, Chapter 5)The Aggregate Supply Curve(3), The Aggregate Demand Curve(3), Aggregate Demand Policy under alternative Supply assumptions(4), Supply-Side Economics(4);Putting Aggregate Supply and Demand together in the Long Run(4) ASSIGNMENT 2 Income and Spending(DFS, Chapter 9) Aggregate Demand and Equilibrium output(5);The consumption Function and Aggregate Demand(5); The Multiplier(5); The Government Sector(6);The Budget(6);The Full Employment Budget Surplus(6). ASSIGNMENT 3 Money, Interest and Income(DFS, Chapter 10)The Goods Market and the IS curve(7); The Money Market and the LM Curve(7); Equilibrium in the Goods and Money Markets(8); Deriving the Aggregate Demand Schedule(8). ASSIGNMENT 4 Monetary and Fiscal Policy(DFS, Chapter 11)Monetary Policy(9);Fiscal Policy and Crowding Out(9); The composition of Output and the Policy Mix(10); The Policy Mix in Action(10)

Session 5-6

Session7-8

Session 9-10

Session 11-13

Session 14-16

Evaluation Pattern

ASSIGNMENT 5 MID SEMESTER EXAMS International Linkages(DFS, Chapter 12)-The Balance of Payments and Exchange Rates(11);The Exchange Rate in the Long Run(11), Trade in Goods, Market Equilibrium and the Balance of Trade(12); Capital Mobility(12);The Mundell Flemming model:Perfect Capital Mobility under Fixed Exchange Rates(13); Perfect capital Mobility and Flexible Exchange Rates(13). ASSIGNMENT 6 AggregateSupply (M) Three Models of Aggregate Supply-The Sticky Wage Model,The Imperfect Information Model, The Sticky Price Model(14); Inflation, Unemployment and the Phillips CurveDeriving the Phillips curve from the AS curve(14), Adaptive Expectations and Inflation Inertia(15), Two Causes of Rising and Falling Inflation(15), The Short Run Trade-off between Inflation and Unemployment(16), Disinflation and the Sacrifice Ratio(16), Rational Expectations and the Possibility of Painless Inflation(16). ASSIGNMENT 7 END SEMESTER EXAMS End Semester Exams-50%, Mid Semester Exams-20%, Attendance-5%, Assignments-25%

Name and other details The text book for the course is Principles of Economics; of textbook N Gregory Mankiw;CENGAGE; 2007 Indian reprint(M).A set of notes will be provided from MacroEconomics;Dornbusch Rudiger, Fischer Stanley and Richard Starz, Tata McGraw Hill, Ninth Edition. (DFS)Alternatively this book can be purchased to accompany Mankiw.