MACRO ECONOMICS

MACRO ECONOMICS
AREA OF STUDY: FOUNDATION
BBA-211

Year: 2
Semester: 3

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* Continuous
** Duration: 3 hours

Objectives:
The students shall be able to comprehend concepts, types, importance etc of macroeconomics. They shall study national income. Keynesian Economic Theory along with the concepts & components of inflation, monetary policy and trade cycle in this course.
Contents
Unit 1: Macroeconomics L. H. 4
Concept, Types, Importance and Limitations
Unit 2: National Income L. H. 5
Concepts, Measurement, Difficulties in Measurement, Importance, Accounting Concepts.
Unit 3: Classical Theory of Output and Employment L. H. 6
Says Law of Market, Assumption; Classical Theory of Output and Employment Limitations.
Unit 4: Keynesian Economic Theory L. H. 17
Keynesian Theory of Employment, Consumption Function: Short-run & Long run; Marginal Propensity to Consume (MPC), Average Propensity to Consume (APC) Concept of Investment; Autonomous & Induced; Investment Function; Concept, Types, Measures to Raise Investment, Saving Function; Paradox of Thrift, Concept, Determinants, Simple Investment Multiplier; Concept, Importance and Leakages.
Unit 5: Inflation L. H. 8
Concept, Types, Causes, Effects, Remedies, Inflationary Gap, Concept of Deflation and Stagflation.
Unit 6: Monetary L. H. 5
Concept, Objectives, Instruments (Qualitative and Quantitative) Role of Monetary Policy in Developing countries.
Unit 7: Trade Cycle L. H. 3
Concept, Phases, Features
Suggested Readings:
1. Jhingan, M. L. Macro Economic Theory, Konark Publisher Ltd. Delhi
2. Ahuja, H. L., Advanced Economic Theory, S. Chand and Company, New Delhi.
3. Dwivedi, D. N., Principles of Economics, Vikash Publishing House, New Delhi.
4. Joshi, Shyam, Micro & Macro Economics Analysis, Taleju Prakashan, Kathmandu.
5. Shapiro, E., Macro Economic Analysis, New Delhi.
6. Vaish, M. C., Macro Economic Theory, Wishwa Prakashan, New Delhi.
7. Kulkarni, K. G. Modern Monetary Theory, Macmillan India Ltd.
8. Mithani, D. M., Monetary Theory