SEMESTER V CORE COURSE VIII PRINCIPLES OF MACRO ECONOMICS (EC5B08U) Module I - Basic Concepts Micro and Macro Economics Macro statics and Macro dynamics Economic models – – – macro economic variables Stock Flow Endogenous and Exogenous Actual GNP and – – – – Potential GNP Net Economic Welfare (NEW) 10 hrs – Module II - National Income Accounting National Income Concepts and their relationships Real Vs Nominal GNP GNP – – deflator Consumer Price Index and Producer Price Index Methods of measurement Value – – – Added Income and expenditure methods- Estimation of NI in India- difficulties in the – measurement of national income Estimation of GNPMP-GDPMP-NDPMP-NNPMP -NNPFC - – personal income-Disposable personal income-percapita income - private income - private saving and investment-compensation of employees and operating surplus. 25 hrs Module III - Classical Economics Classical Revolution Key Classical assumptions Say’s Law of Markets Classical – – – theory of employment, output, prices and interest Classical dichotomy Quantity theory of – – money Cash transactions and Cash balances approaches. 20 hrs – Module IV - Keynesian System Keynesian Revolution Keynes’ attack on Classicals Consumption Function APC, – – – MPC, APS and MPS with numerical illustration - Keynesian model of income determination – Keynesian cross 450 ASF ADF Effective demand changes in equilibrium income Effect – – – – – of an increase in autonomous investment and taxes with algebraic illustration Investment – multiplier Static and dynamic balanced budget multiplier- multiplier in perspective-leakages – – of the multiplier - Income determination in an open economy and foreign trade multiplier- Pigou effect and Keynes effect-Keynesian theory of demand for money and interest rate. Keynesian analysis on stickiness of wages and prices.
SEMESTER V CORE COURSE VIII PRINCIPLES OF MACRO ECONOMICS (EC5B08U) Module I - Basic Concepts Micro and Macro Economics – Macro statics and Macro dynamics – Economic models – macro economic variables – Stock – Flow – Endogenous and Exogenous – Actual GNP and Potential GNP – Net Economic Welfare (NEW) 10 hrs Module II - National Income Accounting National Income Concepts and their relationships – Real Vs Nominal GNP – GNP deflator – Consumer Price Index and Producer Price Index – Methods of measurement – Value Added – Income and expenditure methods- Estimation of NI in India- difficulties in the measurement of national income – Estimation of GNPMP-GDPMP-NDPMP-NNPMP -NNPFC - personal income-Disposable personal income-percapita income - private income - private saving and investment-compensation of employees and operating surplus. 25 hrs Module III - Classical Economics Classical Revolution – Key Classical assumptions – Say’s Law of Markets – Classical theory of employment, output, prices and interest – Classical dichotomy – Quantity theory of money – Cash transactions and Cash balances approaches. 20 hrs Module IV - Keynesian System Keynesian Revolution – Keynes’ attack on Classicals – Consumption Function – APC, MPC, APS and MPS with numerical illustration - Keynesian model of income determination – Keynesian cross – 450 ASF – ADF – Effective demand – changes in equilibrium income – Effect of an increase in autonomous investment and taxes with algebraic illustration – Investment multiplier – Static and dynamic – balanced budget multiplier- multiplier in perspective-leakages of the multiplier - Income determination in an open economy and foreign trade multiplier- Pigou effect and Keynes effect-Keynesian theory of demand for money and interest rate. Keynesian analysis on stickiness of wages and prices.
Semester-V-1.docx