Annexure ‘CD – 01’

FORMAT FOR COURSE CURRICULUM

L T P/S SW/FW No. of TOTAL
PSDA CREDIT
UNITS
Course Title: Principles of Macro Economics
Credit Units: 6 5 0 0 2 3 6
Course Level:UG
Code : ECON152
Course Objectives: The course aims at familiarizing the students with the principles of Macro Economics

Pre-requisites:NIL

Course Contents/Syllabus:
Weightage (%)
Module I Introduction and National Income Concepts 15%
Difference between Micro and Macro Economics and their interdependence. The roots of macroeconomics, Macroeconomic concerns,
The role of government in the macro economy, The components of the macro economy and The methodology of macroeconomics,
Limitations of Macro Economics, Introduction to National Income, Concepts of GDP GNP, NDP and NNP at market price and factor
cost; Personal Income and Disposable Personal, Income. Measurement of National Income- Income, expenditure, product or Value-
added Methods and related aggregates; nominal and real income; limitations of the GDP concept.
Circular Flow of Income and expenditure in two, three, and four-sector economy. National Income and Economic Welfare

Module II Basic Classical Theory 20%

Basic classical model: the building blocks-Say‘s law, the rate of interest and quantity theory of money. Price and wage flexibility.
Complete Classical model of determination of output and employment without saving and investment and with Saving and investment.
Neutrality of money and Classical Dichotomy.

Module III Basic Keynesian Model and multipliers 25%

Keynes’ Objection to the Classical Theory; Aggregate Demand and Aggregate, Supply Functions; The Principle of Effective Demand;
Consumption Function - Average and Marginal Propensity to Consume; Factors influencing Consumption Spending Determination of
Equilibrium income in a four sector economy using Aggregate demand –supply approach and Saving Investment Approach. Open
economy/Foreign Trade Multipliers: Investment multiplier, Lum-sum tax multiplier, Propositional tax multiplier, Government
Expenditure multiplier, Foreign trade multiplier
 Module IV Money, Rate of interest and open market macroeconomics 25%
Money: Meaning and Functions, Demand for Money, Supply of Money, Rate of Interest: Classical, Neo-Classical and
Keynesian Theories of Interest. Indeterminateness in Liquidity Preference Theory
Simultaneous Equilibrium in Money and Product Markets: IS-LM Model. Relative Effectiveness of monetary and Fiscal
policies, Fiscal Policy and Crowding out. Role of Monetary and Fiscal policies in attaining Equilibrium in the Goods and
Money Markets

Module V Theory of Inflation and Business Cycles

Inflation: Demand Pull and Cost-Push Approaches. Philips Curve: trade-off between Inflation and unemployment Long – run Phillip’s 15%
curve. Relationship between Short run and Long run Phillip’s curve. Theory of Business Cycle: Schumpeter
Course Learning Outcomes:

After completing the course successfully, the students will be able to:
1. Understand the role of Government in the Economy.
2. Explain national income, comprehend calculation methods of national income, and concepts related to national income.
3. Comprehend classical theory of employment, the Keynesian approach., the concept of multiplier and it’s working.
4. Examine the relationship between inflation and employment.
5. Apply by relating factors determining national income such as consumption, saving and investment to economic growth
6.Analyze and evaluate different phases of trade cycle, demonstrate various trade cycle phases, understand the impact of cyclical fluctuation on the growth of
business, and lay policies to control trade cycle.

Pedagogy for Course Delivery:

The class will be taught using lecture method in blended mode using the four quadrant approach and class participation will be encouraged. Conceptual
understanding will be developed by the student at his own pace through online material provided in advance on LMS. Application of the concepts in the current
scenario will be discussed in the class. Self-work will be the integral part of curriculum and students will be asked to give presentations in groups, make
projects and do case based analysis on related applied topics.

List of Professional Skill Development Activities (PSDA):

i. Prepare project on Government Regulations and macro-economic status of the country
ii. Preparing a brief report on National Income estimation
iii. Writing an essay on various contemporary issues like Inflation in India

Lab/ Practicals details, if applicable:

List of Experiments:



 
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Assessment/ Examination Scheme:
Theory L/T (%) Lab/Practical/Studio (%)
NA NA

Theory Assessment (L&T):

Continuous Assessment/Internal Assessment End Term Examination
(_40 %) (_60 %)
Components (Drop down) Mid term Project Presentation Attendance

Linkage of PSDA with PSDA 1 PSDA2 And PSDA 3

Internal Assessment
Component, if any
Weightage (%) 10% 15% 10% 5%
60%

Lab/ Practical/ Studio Assessment:

Continuous Assessment/Internal Assessment End Term Examination

( %) ( %)

Components (Drop down NA NA NA NA NA NA NA

Weightage (%) NA NA NA NA NA NA NA
Mapping Continuous Evaluationcomponents/PSDA with CLOs

Understand Examine the Comprehend Apply by Analyze and evaluate

the role of Explain national relationship classical relating different phases of trade
Government income, comprehend between theory of factors cycle, demonstrate
in the calculation methods of inflation and employment, determining various trade cycle
Economy. national income, and employment. the national phases, understand the
concepts related to Keynesian income such impact of cyclical
national income. approach., as fluctuation on the
the concept consumption, growth of business, and
of multiplier saving and lay policies to control
and it’s investment to trade cycle.
working. economic
growth

Course Learning CLO1 CLO2 CLO3 CLO4 CLO5 CLO 6

Outcomes

Assessment
type/PSDA

PSDA 1    

PSDA2  
PSDA3  
MIDTERM    
Text Books:
1. Ackley.G (1976) : Macroeconomics: Theory And Policy, Macmillan, New York.
2. Ahuja,H.L (2012) : Macroeconomics: Theory and Policy , S. Chand &Company, New Delhi.
3. Ahuja,H.L (2012) : Samasti Arthshastra , S. Chand &Company, New Delhi. Lal,S.N (2012) : Samastibhavi Visleshan , Shiva Publishing House, Allahabad.
4. D.L (1969) : Advanced Macroeconomics, McGraw Hill, New York.
5. Dornbusch, Rudiger&startz, Richard (2012): Macroeconomics , Tata McGraw Hill Education.
6. Dwivedi,D.N (2010) : Macroeconomics: Theory and Policy , Tata McGraw Hill Education.
7. Gupta,R.D.&Rana,A.S (2009) : Keynes post-Keynesian Economics , Kalyani Publishers, New Delhi &Ludhiana.
8. Jhingan, M.L (2010): Macroeconomics ,Vrinda Publications, New Delhi.
9. Jhingan, M.L (2012) :SamastiArthshastra , Vrinda Publications, New Delhi.
10. Sikdar,Saumyen (2011) : Principles of Macroeconomics , Oxford University Press, New Delhi.

Reference
1. Branson,W.A (1989) : Macroeconomics Theory And Policy, Harper & Row.
2. Hansen,A.H (1953) : A Guide To Keynes, McGraw Hill.
3. Surrey,M.J.C (1976) : Macroeconomic Themes, Oxford University Press. Romer,
4. Shapiro, Edward (2005): Macroeconomic Analysis, Galgotia Publications, New Delhi.

Any other Study Material:


Mapping Continuous Evaluationcomponents/ Graduate Attributes with CLOs

Course Learning Outcomes Understand Examine the Comprehend Apply by Analyze and
the role of Explain relationship classical relating evaluate
Government national between theory of factors different phases
in the income, inflation and employment, determining of trade cycle,
Economy. comprehend employment. the national demonstrate
calculation Keynesian income such various trade
methods of approach., as cycle phases,
national the concept consumption, understand the
Graduate Attributes income, and of multiplier saving and impact of
concepts and it’s investment to cyclical
related to working. economic fluctuation on
national growth the growth of
income. business, and
lay policies to
control trade
cycle.

CLO1 CLO2 CLO3 CLO4 CLO5 CLO 6

1 Discipline Knowledge & Expertise √ √ √ √
2 Self- directed and Active Learning √ √ √ √
3 Information and digital literacy √
4 Communication Skills
5 Critical Thinking & Problem Solving Abilities √ √ √ √
6 Information & Communication Technology
Skills
7 Creative, Innovation & Reflective Thinking √
8 Analytical & Decision making ability √ √ √ √ √ √
9 Leadership & Teamwork
10 Multicultural & Global Outlook
11 Integrity and Ethics social & motivational √
Skills
12 Employability, Enterprise & Entrepreneurship √ √ √ √ √ √
13 Lifelong Learning