Macro-Economic Analysis and Policy

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BBA,Maharishi Dayanand University, Second Semester
 
Syllabus
Unit-I
Nature and Scope of Macroeconomics, Circular Flow of Income; National Income  – Alternative Concepts and the Measures, Income and their Interrelationship, Stock and Flow Variables, Aggregate Demand, Supply and Macroeconomic Equilibrium, Nature of a Trade Cycle, Causes of Booms and Recessions.
 
Unit-II
Macro Analysis of Consumer Behaviour, Cyclical and Secular Consumption, Income Consumption Relationship, Absolute, Relative and Permanent Income Hypothesis, Simple Keynesian Model of Income Determination; Multiplier Analysis.
 
Unit-III
Nature of Fiscal Policy, Fiscal Deficits, Fiscal Policy in Relation to Growth and Price Stability, Basic Issues in Fiscal Deficit Management, Nature and Management of Public Debt; Business Taxes – Types, Rationale and Incidence.
 
Unit-IV
Money Supply Measures – Credit Creation Process and Money Multiplier, Instruments of Monetary Policy; Promotional and Regulatory Role of Central Bank; Monetary Policy – Types, Causes, Effects and Control Measures.
MDU/BBA/2/02
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