INTRODUCTORY MACROECONOMICS


Course Description

This course aims to introduce the students to the basic concepts of Macroeconomics. Macroeconomics deals with the aggregate economy. This course discusses the preliminary concepts associated with the determination and measurement of aggregate macroeconomic variable like savings, investment, GDP, money, inflation, and the balance of payments.

Course Outline

1. Introduction to Macroeconomics and National Income Accounting

Basic issues studied in macroeconomics; measurement of gross domestic product; income, expenditure and the circular flow; real versus nominal GDP; price indices; national income accounting for an open economy; balance of payments: current and capital accounts.

2. Money

Functions of money; quantity theory of money; determination of money supply and demand; credit creation; tools of monetary policy.

3. Inflation

Inflation and its social costs; hyperinflation.

4. The Closed Economy in the Short Run

Classical and Keynesian systems; simple Keynesian model of income determination; IS-LM model; fiscal and monetary multipliers.


THIS SECTION CONTAINS PREVIOUS YEAR PAPERS OF INTRODUCTORY MACROECONOMICS.


THIS SECTION CONTAINS STUDY MATERIAL OF INTRODUCTORY MACROECONOMICS.



THE ABOVE PORTION CONTAINS READINGS

AND THE BELOW CONTAINS EXTRA MATERIAL (SHORT NOTES).



Readings:

1. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010.

2. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th edition, 2010.

3. Olivier Blanchard, Macroeconomics, Pearson Education, Inc., 5th edition, 2009.

4. Richard T. Froyen, Macroeconomics, Pearson Education Asia, 2nd edition, 2005.

5. Andrew B. Abel and Ben S. Bernanke, Macroeconomics, Pearson Education, Inc., 7th edition, 2011.

6. Errol D‘Souza, Macroeconomics, Pearson Education, 2009.

7. Paul R. Krugman, Maurice Obstfeld and Marc Melitz, International Economics, Pearson Education Asia, 9th edition, 2012.

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