Business Economics SYBCOM – III Semester III Manan Prakashan

Business Economics SYBCOM – III Manan Prakashan
Semester III

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

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

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

4. MONEY, PRICES AND INFLATION
l Money Supply: Determinants of Money Supply – Factors influencing Velocity of Circulation of Money
l Demand for Money : Classical and Keynesian approaches and Keynes’ liquidity preference theory of interest – Friedman’s restatement of Demand for money
l Money and prices : Quantity theory of money – Fisher’s equation of exchange – Cambridge cash balance approach
l 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