Description

Business Economics – III

SYBCOM Semester III

Syllabus

1. INTRODUCTION
♦ Macroeconomics : Meaning, Scope and Importance.
♦ Circular flow of aggregate income and expenditure and its Importance – closed and open economy models
♦ The Measurement of National Product: Meaning and Importance of National Income Accounting – conventional and Green GNP and NNP concepts – National Income and Economic Welfare.
♦ Trade Cycles: Features and Phases
♦ Classical Macro economics : Say’s law of Markets – Features, Implications and Criticism

2. BASIC CONCEPTS OF KEYNESIAN ECONOMICS
♦ The Principle of Effective Demand : Aggregate Demand and Aggregate Supply
♦ Consumption Function: Properties, Assumptions and Implications
♦ Investment Function and Marginal Efficiency of Capital
♦ Investment Multiplier effect on Income and Output: Assumptions, Working, Leakages, Criticism and Importance – paradox of thrift
♦ Relevance of Keynesian theory tools to the developing countries
Liquidity Preference Theory of Interest

3. POST KEYNESIAN DEVELOPMENTS IN MACRO ECONOMICS
♦ The IS-LM model of integration of commodity and money markets
♦ Inflation and unemployment : Philips curve
♦ Stagflation : meaning, causes, and consequences
♦ Supply side economics

4. MONEY, PRICES AND INFLATION
♦ Money Supply: Determinants of Money Supply – Factors influencing Velocity of Circulation of Money
♦ Demand for Money : Classical and Keynesian approaches and Keynes’ liquidity preference theory of interest – Friedman’s restatement of Demand for money
♦ Money and prices : Quantity theory of money – Fisher’s equation of exchange – Cambridge cash balance approach
♦ Inflation : Demand Pull Inflation and Cost Push Inflation – Effects of Inflation- Nature of inflation in a developing economy – policy measures to curb inflation- monetary policy and inflation targeting