Macro Economics Concepts and Applications MCOM Semester II Manan Prakashan

Macro Economics Concepts and Applications
MCOM Part I Semester II
Content:
1. Aggregate Income and its Dimensions
l Aggregate Income and its dimensions : National income aggregates – and measurement; – GNP, GDP, NDP, Real and nominal income concepts, measures of inflation and price indices – GDP deflator – Nominal and real interest rates – PPP income and HDI
2. Keynesian Concepts of Aggregate Demand (ADF), Aggregate Supply (ASF)
l Keynesian concepts of Aggregate Demand (ADF), Aggregate Supply (ASF), Interaction of ADF and ASF and determination of real income; Inflationary gap
l Policy trade – off between Inflation and unemployment – Phillips’ curve – short run and long run
3. Economic Policy Implications in the IS-LM Framework
l The IS-LM model : Equilibrium in goods and money market; Monetary and real influences on IS-LM curves, Economic fluctuations and Stabilisation policies in IS-LM framework – Transmission mechanism and the crowding out effect; composition of output and policy mix, IS-LM in India
4. International Aspects of Macroeconomic Policy
l International aspects of Macroeconomic policy: Balance of payments disequilibrium of an open economy – corrective policy measures – Expenditure changing policies and expenditure switching policies BOP adjustments through monetary and fiscal policies – The Mundell – Fleming model – Devaluation, revaluation as expenditure switching policies – effectiveness of devaluation and J – curve effect