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Course started on 3rd March, 2025
Course completed on 19th June, 2025
Question paper:2018, 2020, 2021
Content/ Syllabus: Unit wise course content distribution
Unit -1. Consumption Function
Empirical findings regarding Consumption Function – Alternative Theories regarding its behaviour – Keynes, Smithies, Dusenbery, Friedman, Ando-Modigliani.
Class task submission link - 06/04/25
Lecture 1- Keynes Theory of Consumption - Follow Class Notes
Lecture 2- Empirical Evidence and Later development- Follow Class Notes
Lecture 3- Absolute Income Hypothesis/Drift Theory of Consumption
Lecture 4- Relative Income Hypothesis
Lecture 5 - Permanent Income hypothesis - Follow Class Notes
Lecture 6 - Life cycle hypothesis- Follow Class Notes
Unit-2. The Investment Function
Class task Submission Link 23/06/25
The Keynesian analysis of Investment – The Marginal Efficiency of Investment, and its relation with the amount of Investment – Shortcomings of Keynesian analysis
• Net Present Value criterion and Marginal Efficiency criterion of Investment
• The Fixed Accelerator Principle of Investment – its Implications and Limitations.
• The Flexible Accelerator Principle of Investment – its Implications and Limitations, (Multiplier accelerator theory).
Investment Function Part-1 Notes
Unit -3. Money Market
• Three motives of holding money – Transaction, Precautionary and Speculative demand for money. the liquidity trap analysis.
• Keynesian liquidity preference theory.
• The inventory theoretic approach to transaction demand for money –Baumol and Tobin
• Supply of money – credit creation by commercial banks – money multiplier – interest sensitivity of money supply
Supply of money – credit creation by commercial banks - follow Class notes
Unit -4. Complete Keynesian System
• Commodity market equilibrium (IS) – Money market equilibrium (LM) – IS-LM equilibrium - the Aggregate Demand and Aggregate Supply.
• Introduction of the Labour Market –– the interaction between Commodity Market, Money Market and Labour Market – Determination of Equilibrium – Effects of changes in Money Supply and other factors
– Comparison with the Classical system – Price Flexibility – Real Balance Effect and Full Employment.
Class task submission link = 06/04/25 (2 incentive marks)
Class task Unit-4 - Submit by 7th May, 2025
Notes
IS Curve - Good market equilibrium - Notes
Walras Law and Asset Market - Notes
Derivation of LM Curve - Notes
Slope of LM and Simultaneous Equilibrium- Follow Class Notes
Crowding Out and Policy Implication- Notes , Class Workout
Fiscal Policy and Monetary Policy Multiplier - Follow Class Notes
Concept of AD in the IS-LM Framework - Follow Class Notes , Video
Concept of AS, AD-AS, Effectiveness of FP and MP under different Supply condition- Follow Class Notes
Comparison of IS-LM Model with the Classical Model - Notes
General equilibrium in the IS-LM Framework - Introducing F.E Line- Notes
Real Balance Effect and Full Employment- Notes
Videos
Introduction to IS-LM Model and derivation of IS Curve- Video1
Comparing Keynesian cross model and IS schedule derivation, determining factor for IS slope and shift of IS Curve- Video2
Asset market, LM Curve derivation, shift, slope and Simultaneous equilibrium in the IS-LM Model - Video 3, Video 4
Crowing out in the IS-LM Framework and policy Implication - Video 5
Video 7 - Fiscal policy & Monetary policy multiplier in the IS-LM Model
Video 8 - Derivation of Aggregate Demand curve in the IS-LM Model
Video 9 - Derivation of AD, Slope and Shift in AD
Video 10 - FP & MP under alternative Aggregate Supply Condition.
Video 11 - General equilibrium in the IS-LM Framework - Introducing F.E Line
Unit -5. Theories of Inflation
Class task Submission Link 23/06/25
• The Quantity Theory approach to Inflation
• Demand Pull Inflation and Inflationary Gap analysis; Its shortcomings
• Concepts of Cost Push & Mark Up inflation
• Consequences of inflation – Measures to control Inflation.
• The Philips Curve and the trade-off between Inflation and Unemployment – short-run and long-run Philips Curve
References/ Suggested Readings
1.Soumyen Sikdar: Principles of Macroeconomics, OUP.
2.Dornbusch, Fischer and Startz: Macroeconomics, 12th Edition. McGraw Hill Education India.
3.William H. Branson: Macroeconomic Theory and Policy, 2nd Edition, Universal Book Stall, New
Delhi.
4.G, Ackley: Macroeconomic Theory. The MacMillian Company.
5.N. Gregory Mankiw and Mark P. Taylor: Macroeconomics, 4th Edition, Cengage Learning (India).
6.Richard T. Froyen: Macroeconomics Theories and Policies, 12th Edition, Pearson Education
India.
7.Abel, Bernanke and Croushore: Macroeconomics, 8th Edition, Pearson.
8.Olivier Blanchard: Macroeconomics, 7th Edition, Pearson Education India.
9.R. Jha – Macroeconomics for Developing Countries (2nd edition), Routledge.
10.L, Harris: Monetary Theory: McGraw-Hill
11. M.J.C Surrey (Edited): Macroeconomic Themes: Edited Readings in Macroeconomics with
Commentaries: Oxford University Press
12.Errol D’Souza: Macroeconomics, Pearson Education
Continuous Assessment (Internal Exam): 30 Marks
1. Attendance - 10 marks
attending less than 60 % - 0 marks
attending at least 60% but less than 75% - 6 marks
Students with over 75% but less than 90% attendance - 8 marks
With 90% attendance and more - 10 marks
2. Class Tasks/Homework - 10 marks
2 marks each units x 5 = 10 marks
3. Exam- Subjective/Objective type - 10 marks
Internal Exam carries 10 marks
4. Incentive marks- 5 marks
Class participation, active involment in department activities, presentation etc
End Semester Examination: 70 Marks
The end semester examination shall be conducted based on written test.
Question Pattern: Students have to answer 2 questions carrying 10 marks out of given 4 questions
; 4 questions carrying 5 marks each out of given 8 questions;.
10 questions carrying 2 marks each out of given 16 questions;
Ten questions carrying 1 mark each out of given 16 questions.
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