Macroeconomics – II SYBA Semester IV Manan Prakashan

Macroeconomics SYBA – II

SYBA Semester IV Manan Prakashan

Content:

Macroeconomics SYBA – II Semester IV Manan Prakashan

Module – 1 : Money (12 Lec.)

Concept of money – supply of money – CRR, CDR, high powered money and its components – Money multiplier – Current measures of money supply in India – Quantity theory of money – Velocity of circulation – Factors affecting velocity of circulation – Fisher and Cambridge equations.

Module – 2 : The Money Market (12 Lec.)

Motives for holding money – Transactions motive – Precautionary motive – Speculative motive – Interest rate as cost of holding money – Liquidity trap – Money-market equilibrium – Derivation of LM curve -Shifts in the LM curve.

Module – 3 : The Goods Market (12 Lec.)

Savings function – Marginal propensity to save – Investment demand function and its interest elasticity – Animal spirits – Equilibrium in the goods market – Derivation of the IS curve – Shifts in the IS curve.

Module – 4 : Monetary and Fiscal Policy (12 Lec.)

Simultaneous equilibrium in the goods and money markets (IS-LM equilibrium) – Determination of income and interest rates – Monetary policy and its instruments – Effectiveness of monetary policy – Fiscal policy and its instruments – Effectiveness of Fiscal policy.

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