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AG ECON 502 MACROECONOMICS I                                                                               (3L + 0P) II

Objective
  The course is designed to understand key concepts, basic macro-economic theories and role of government in the economy and policy making process.

Theory

UNIT I: BASIC CONCEPTS AND MEASUREMENT
  Basic concepts and scope of Macro-economics, National Income Accounting and measurement of income, concepts and measurements of money, prices, unemployment and growth, Indian system of Macroeconomic data management.

UNIT II: CLASSICAL THEORY
  Say’s Law, Quantity theory of money, aggregate supply and labour market, Classical theory of determining output, employment, wages and prices, Classical theory of saving, investment and interest rate.

UNIT III: KEYNESIAN MACROECONOMICS
  Consumption function, theories of aggregate consumption and empirical studies of consumption, aggregate demand and its components, Simple Keynesian model, multiplier and their impact on output, fiscal policy and Keynesian dynamics. International trade and multiplier effect

UNIT IV: KEYNESIAN-CLASSICAL SYNTHESIS
  Keynes theory of interest, liquidity preference, demand and supply of money, investment theories, IS-LM Model for output and interest determination, fiscal and monetary policies under different monetary assumptions, fiscal- monetary policy mix and their effectiveness, effects of government budget deficits.

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