FOUR YEAR UNDERGRADUATE PROGRAMME IN ECONOMICS (NEP)
DETAILED SYLLABUS OF 2nd SEMESTER
Title of the Course : Elementary Macroeconomics
Course Code : MINECO2
Nature of the Course : Minor
Total Credits : 04
Distribution of Marks: 60 (End Sem) + 40 (In-Sem)
Course Objectives:
1. To help students know the meaning of macroeconomics and how the overall production of economy is computed;
2. To familiarize the students with concepts of aggregate demand and aggregate supply;
3. To introduce the students with the classical and Keynesian theories of employment and output determination; and
4. To help students understand the meanings of money and other concepts related to money.
Course Outcomes: After successful completion of this course students will be able to-
CO1: Describe the distinction between microeconomics and macroeconomics, including the development and objectives
of macroeconomic theory.
LO1.1: Explain the distinctions between microeconomics and macroeconomics.
LO1.2: Trace the historical evolution of macroeconomics as a distinct discipline.
LO1.3: Identify and describe the primary schools of macroeconomic thought, including classical, Keynesian, and
monetarist perspectives.
LO1.4: Discuss the objectives of macroeconomics in terms of short-term stabilization and long-term economic
growth.
CO2: Gain a comprehensive understanding of how economic activity is measured and the significance of national income
accounting.
LO2.1: Define and differentiate between GDP and GNP, including the concepts of stocks and flows.
LO2.2: Illustrate the circular flow of income in an economy.
LO2.3: Compare and contrast the income, expenditure, and value-added approaches to measuring GDP.
LO2.4: Evaluate the limitations of GDP as a measure of economic activity and its relationship to social welfare.
CO3: Define the concepts of aggregate demand (AD) and aggregate supply (AS) including the identification of factors
responsible for the shifts of AD and AS.
LO3.1: Define aggregate demand and explain its components and determinants.
LO3.2: Analyze the consumption function, including the concepts of MPC and APC.
LO3.3: Discuss the determinants of saving and investment, including the functions of MPS, APS, and investment
demand.
LO3.4: Explain the concept of aggregate supply and identify factors that cause shifts in the aggregate supply curve.
CO4: Compare and contrast the classical and Keynesian theories of output and employment determination and their
relevance to economic equilibrium.
LO4.1: Describe the classical theory of output and employment determination and Say‟s law of markets.
LO4.2: Analyze the impact of the Great Depression on the classical school and the rise of Keynesian economics.
LO4.3: Explain the Keynesian theory of equilibrium between output and aggregate demand, including the concept
of the multiplier.
LO4.4: Calculate equilibrium income and understand its implications for macroeconomic stability.
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CO5: Elaborate the role of money in the economy, the various types and measures of money, and the causes and effects of
inflation.
LO5.1: Define money and its functions, and differentiate between different types of money (fiat, fiduciary, metallic,
paper).
LO5.2: Identify and explain the various measures of money supply (M0, M1, M2, M3, M4).
LO5.3: Discuss the quantity theory of money and its implications for prices and inflation.
LO5.4: Analyze the causes and types of inflation, its social costs and benefits, and the relationship between nominal
and real interest rates.
Total
UNITS CONTENTS L T P
Hours
Introduction 9 1 10
I Microeconomics vs Macroeconomics; Evolution of Macroeconomics as a
separate discipline; Nature and scope of macroeconomics; Schools of
macroeconomic thought – the classical, the Keynesian and the monetarist;
Microeconomic thinking and Macroeconomic models; Objectives of
Macroeconomics – short term vs long run, economic growth vs stabilization
II National Income Accounting 12
Measuring the value of economic activity and its importance; Meaning of
GDP and GNP; Stocks and flows; Circular flow in an economy; Approaches
to measuring GDP – Income method, expenditure method, and value added
method; GDP deflator; Real GDP vs Nominal GDP; GDP and the
underground economy; GDP and Social welfare;
Introduction to Aggregate Demand and Aggregate Supply 9 1 10
Concept of aggregate demand; Components and determinants of aggregate
III
demand –consumption, government spending, firms‟ consumption, and net
exports; Consumption function – MPC and APC; Saving – determinants of
saving – MPS and APS; Investment – determinants of investment demand;
investment function; Concept of Aggregate supply; determinants of aggregate
supply; factors shifting aggregate supply
Determination of output and employment 12 2 14
IV The classical theory of determination of output and employment; Say‟s law
of markets; The Great Depression of 1930s – failure of classical school and
the Keynesian revolution; the Keynesian theory – equality between output
and aggregate demand, the concept of multiplier, equilibrium income
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Introduction to money and inflation 12 2 14
Definition of money; Functions of money; Types of money – money in barter
system, fiat money, fiduciary money, metallic money, paper money;
V Measures of Money – M0, M1, M2,M3, and M4; Quantity theory of money;
Money, prices and inflation; Inflation – meaning, types and causes; social
costs of inflation; Benefit of inflation; Interest rates – nominal vs real;
Nominal interest rate and demand for money
Total 54 6 60
Where, L: Lectures T: Tutorials P: Practicals
MODES OF IN-SEMESTER ASSESSMENT: 40 Marks
Two Internal Examinations - 20 Marks
Others (Any two) - 20 Marks
Home assignment
Viva voce
Seminar
Group discussion
Quiz
Cognitive Map of Course Outcomes with Bloom’s Taxonomy:
Cognitive knowledge Cognitive process dimension
dimension
Remember Understand Apply Analyze Evaluate Create
Factual Knowledge CO1 CO1
Conceptual CO1, CO2, CO2, CO3, CO3, CO3, CO4,
Knowledge CO3 CO4, CO5 CO5 CO5
Procedural CO3, CO4, CO3, CO3, CO4, CO4, CO5
Knowledge CO5 CO4 CO5
Metacognitive
Knowledge
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