MACRO ECONOMICS THEORY AND POLICY

Course Objectives:

1. To understand the nature and importance of macroeconomics concepts.

2. To study the measurement of National Output
3. To apply classical theory of Income and Employment.
4. To study the impact of Monetary Policy on Economy at large
5. To study the macroeconomics parameters, help in creating ease of doing business.
6. To able to analyze Economic Survey, Fiscal Policy and Foreign Direct investment and its
consequence on Macro Economy Index.
7. To study Balance of Payment, Exchange rate and its impact on the Country Economy.
.
Pre Requisites:

1. Students should know the basic concepts of economics.

2. Students should know basics of Math and Statistics.

Course Description:

The course is designed to empower students in analyzing and applying macroeconomics concepts
in taking managerial decision in their corporate career. Where we do invest, which sector will give
substantial profit, how to decide make or buy, where to produce, how country GDP help in
strategic planning etc the answer of many questions like these incorporated in the study of this
course.

UNIT-I:

1. Introduction to Macroeconomics, Economy and Development, why we need to study

Macro Economics? (2 Hours)

2. Measuring National Output (Numerical) (2 Hours)

3. Classical theory of income and employment (Pigou, Mills and Say’s) (2 Hours)

UNIT- II:

1. Theory of Economic Growth: Four wheels of Growth - Human resources, Natural

resources, Capital & Technological Changes (2 Hours)

2. Keynesian Model of Income Determination: Two Sector Economy (Graphical Analysis)

(1 Hour)
3. Keynesian Model of Income Determination: Three Sector Economy (Graphical Analysis)
(1 Hour)
4. Keynesian Model of Income Determination: Four Sector Economy (Graphical Analysis)
(1 Hour)
QUIZ: It covers from Unit no 1 & 2 of the syllabus.

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UNIT- III:

1. Central Bank and its functions (2 Hours)

2. Monetary Policy (2 Hours)

3. Money Supply, Money Multiplier and its Measures (1.5 Hours)

4. Inflation and Types of inflation (1.5 Hours)

5. Anti-Inflationary Policies and Philip Curve (2 Hours)

CLASS TEST: It covers from Unit no 1 to 3 of the syllabus.

UNIT- IV:

1. Fiscal Policy and Its Instruments - Public Expenditure, Taxation, Public Borrowings
(2 Hours)
2. Government Budget (3 Hours)

CASE STUDY PRESENTATION / QUIZ: It covers from Unit no 1 to 4 of the syllabus.

UNIT- V:

1. Introduction to BoP Account (0.5 Hours)

2. Foreign Exchange Market and Exchange Rate Determination (1.5 Hours)

3. Fixed and Flexible Exchange Rate (1.5 Hours)

4. Foreign Direct Investment (1.5 Hours)

END-TERM EXAMINATIONS: It covers from Unit no 1 to 5 of the syllabus.

Total (30 Hours)

Text Book
1. Business Economics: Micro and Macro Analysis by Dr. H L AHUJA, S Chand and Co Pvt
Ltd

References Books:
1. Introduction to Business Economics by Dr. Binod Sinha, Dr. Deepthi KS HPH2022
2. Principle of Macro Economics by N Gregory Mankiw Cengage 2019
3. Managerial Economic, Principle and Worldwide Applications Dominick Salvatore and
Ravikesh Srivastava, Oxford Higher Education, 2015.
4. Economics Lipsey and Chrystal, Oxford Higher Education, 2015.
5. Managerial Economics C R Thomas and S C Maurice, TMH, 2015.

6. Managerial Economics by Suma Damodaran ,Oxford

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