Macro Economics L T P C

Subject Code
Total Contact Hours :56
BAT 152 4 0 0 4
BBA
Marks
Internal- 40 External- 60
Course Objective
Understanding of the aggregates of various market forces at a larger scale and application of the
economic concepts
Unit Course Outcome
The student will be able to comprehend the dynamics of economy and its application in
1.
modern day business.
2. Understanding of investment & multiplier function
3. Understanding of stabilization policies of Indian Economy
Content of the Syllabus

Unit-I

Macro Economics: Definition, Nature and Scope of Macro Economics. Difference with Micro
Economics
Basic concepts: Stock and flow variables, partial and general equilibrium, static and dynamic
analysis, Circular flow of income and expenditure
National Income: concepts, measurement, difficulties and importance
Unit-II
Theory of income and employment: Classical Theory of Income and employment. Keynesian
theory of employment (Effective demand).

Theory of Investment: Types (Autonomous, induced, private, public, real and financial
investment) and determinants of investment. Marginal efficiency of capital, Concept of Keynes
multiplier.

Unit-III

Inflation: Meaning, types, Demand and Cost Push theory, measure to control inflation,
inflationary gap, Phillips Curve.
Money: Function and role, Commercial banks: functions and credit creation.
Central bank: functions, credit control, monetary and fiscal policy in India.

Text Books - Dwivedi, D.N.: “Macroeconomics: Theory and Policy”, Tata McGraw Hill, New Delhi.
Reference Material –

1. Shapiro, Edward: “Macroeconomic Analysis”, Harcourt Publishers Ltd., New York.

2. Dwivedi, D.N.: “Macroeconomics: Theory and Policy”, Tata McGraw Hill, New Delhi.
 Management Macro Economics
A b c d e f g h i j k
Program Outcome
Mapping of Course
outcome with Program √ √
outcome
Project/
BS ES PD PC PE OE
Category Training
√
Approval Date of meeting of the Board of Studies

NOTE FOR THE PAPER SETTER

The syllabus has been divided into three units. Paper setter will set 3 questions from each unit and 1
compulsory question spread over the whole syllabus consisting of 5 short answer questions.
Compulsory question will be placed at number one. Candidate shall be required to attempt 6 questions
in all including compulsory question and selecting not more than 2 questions from each unit. All
questions carry equal marks.