Lovely Professional University, Phagwara

INSTRUCTIONAL PLAN (for Lectures) Term: ___2nd____ Course No. ECO121 Course Title: Macroeconomics L: 4 T: 1 P: 0

Textbook: 1 Macro Economic analysis by Edward Shapiro Galgotia Publication Other specific books: 2. Chapter 2, 5, 9, 20, 21, 27 in Ahuja, H.L. , Macro Economic: Theory and Policy , S.Chand Publication 3. Chapter 2,3,4,5,14,27 in Abel, A.B., Bernanke B.S. Macroeconomics, Pearson Education, 4th Ed., 2006 Other readings: S.No. 4. 5. 6. 7. Journal articles as compulsory readings (Complete reference) Stanumoorth, R., Nature of current inflation on food prices, Economic & Political Weekly, October, 4-10, 08 Vol. XLIII, No. 40, pg. 17-21 Bhalla, G.S., Globalisation and Employment trends in India, The Indian Journal of Labour Economics, Vol. 51, No. 1, January March, 08, pg. 1-24 DOrlando, Fabio and Sanfilippo, Eleonora, Behavioral Foundations for the Keynesian Consumption Function, www.ssrn.com/abstract=961780 Pierdzioch, Christian, Buch, Claudia M., & Dopke Jorg, Financial Openness and Business Cycle Volatility, Kiel Institute of World Economics Working Paper no. 1121, July 2002 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=319520 Salient Features Notes related to various topic of macroeconomics are available with assignments. Students can also download course material from this site. www.economics.about.com/od Various terms and definition pertaining to /microeconomics/Macroeconomics_Resourses.htm economics are given in this site. Quite handy for those students who dont have prior knowledge about Macroeconomics. www.econlib.org/library/Enc/Macroeconomics.html This website is like library of macro economic theory.

Relevant websites: S.No. Web address (Exact page address) 8. www.ocw.mit.edu/OcwWeb/Economics/14-01Fall2007/CourseHome/ 9.

1 0.

Detailed Plan for Lectures Plan for 12L lectures: 6L for before the MTE, 6L for after the MTE. Provide for at least 2L spill-over lecture. Lectu Topic Chapters/ Assignment/ Pedagogical Date re No. Sections of Task to be aid Delivered2 Textbook/ assigned to Demonstration other students / case study/ 1 reference images/ 3 DoS4 animations etc.5 1. Introduction to macroeconomics Ch.1/1/8 aggregates 2 National income estimation Ch.2/1 concepts and methods As

3 4 5 6

National income estimation concepts and methods National income estimation concepts and methods Problems of national income estimation Real and Nominal GNP, GNP deflators, different price indices used in Indian economy

Ch.2/1 Ch.2/1 Ch.2/1 Ch.2/3

signment 1 Case Study (Does CPI Inflation over state increase in the cost of living)

7 8 9 10 11 12 13 14 15

Circular Flow of Income in 4 sector model. Circular Flow of Income in 4 sector model. Concepts of income output and employment determination Classical theory equilibrium in various markets Classical theory equilibrium in various markets Keynesian theory of income, output and employment Keynesian theory of income, output and employment Principle of Effective Demand. MTE Consumption Function :Classical Concept

Ch.2/3 Ch.2/3 Ch.4/1/8 Ch.9/1 Ch.9/1 Ch.4/1 Ch.4/1 Ch.4/1 Ch.6/2/6 Assignment 2

Ppt Ppt Ppt Application ( The response of consumption to stock market crashes and booms) Ppt

16 17 18 19

Consumption Function Keynesian Concept Propensities to consume APC and MPC Factors effecting the propensity to consume Introduction to Investment and Multiplier

Ch.6/2/6 Ch.6/2/6 Ch.6/2/6 Ch.4/3

20

Investment Function

Ch.5/3

Case Study ( The UK savings Gap: why is the saving ratio so slow) Applicaton ( Measuring

the effect of Taxes on investment) 21 22 23 24 25 Marginal Efficiency of Capital, Concept of Multiplier and its working Marginal Efficiency of investment Leakages of multiplier
General Equilibrium of Economy: ISLM curve analysis General Equilibrium of Economy: ISLM curve analysis

Ch.17/1 Ch.9/2 Ch.9/2 As si gn m en t2 Ppt Ch.25/1 Application (Money Growth Targeting and inflation targeting) Application (Money Growth Targeting and inflation targeting) Ppt

Ch.20/2

26 27

General Equilibrium of Economy: ISLM curve analysis

Ch.21/2

Monetary Policy

28

Monetary Policy

Ch.25/1

29 30 31

Fiscal policy Fiscal policy Inflation: Meaning types/ effects of inflation

Ch.25/1 Ch.25/1 Ch.22/1/4 Case study (inflation and the price level in the long run) Presentation Ppt Case study (Measurement of inflation in India) Case Study (Great World Depression

32 33 34

Demand Pull and Cost Push theories of inflation Methods to control inflation Monetary Fiscal Measures Nature of inflation in underdeveloped countries Trade Cycle: Meaning, and Types of trade cycle

Ch.22/1/4 Ch.21/1/4 Ch.21/1/4

35

Ch.27/2/7

36

Phases of Trade cycle.

Additional material for spill over (for at least 2XL lectures) 1 Role of Monetary and Fiscal www.rbi.org.in policy in India 2 Effects of Global inflation on www.rbi.org.in Case Study Indian economy www.epw.org.i n 3 Trade cycles in world www.govtofindi Case study economy/Regional Economies a.in Notes: 1. Use S. No. Of the readings above 2. To be filled in on the date of delivery of lecture by the instructor 3. Put assignment number from Assignment Table (below) against the lecture in which planned to be assigned (by co-ordinator) 4. To be filled in on the date of assignment (by the instructor) 5. Do not write Lecture, OHP, LCD projector etc. Details of Assignments Planned: Assignment Details Nature of No. Assignment 1 Basic Macro Economic Concepts and Analytical economies of the world. 2 3 4 To understand the concept of Consumption function, Investment function and Effective demand. To understand the concept of Multiplier, IS- LM Comparative analysis of effectiveness of Monetary and Fiscal policy and achievement of economic objectives and inflation. Analytical Analytical Expected outcome Understanding of basic macro economic concepts and there applicability. To have a better insights of various concepts.

Term paper to be allotted by lecture no. _12____ Scheme for CA: (out of 100) Component Attendance Assignments Quiz Test Case Study Term Paper Frequency 1 4 2 2 1

To have a better insights of various concepts Application and Student will be able to analysis of monitor the problem of Monetary and Fiscal inflation and applicability policy of Monetary and Fiscal policy Due date of term paper: 2 wks before the close of term

Marks out of 100 10 40 20 20 10

List of suggested topics for term paper [at least 15] (Student to spend about 15 hrs on any one specified assignment) S.No. Topic

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Effect of Monetary and Fiscal actions on IS- LM function National Income growth and standard of living Monetary Policy and Commercial Banks in India FDI growth and its impact on domestic investment FDI growth and infrastructure Monetary actions and inflation in India Evaluation of Fiscal Policy in India Investment in infrastructure in India- An Evaluation Investment in Energy sector in India- Recent Trends Impact of recession on share market Comparative Analysis of credit control by public vs private sector banks Evaluation of public expenditure on rural development schemes in Union Budget during current fiscal year Employment generation and government expenditure in India during current fiscal year Role of Keynesian Economics in rescue operations of current global recession Role of government expenditure in Keynesian Economics

_______________________ Prepared by (Instructional Planner: Name, signature & date)

Comments of HoD(Chief Academic Officer Signature & Date Comments of Dean of Faculty Signature & Date

Conduct of Tutorials Tutorial Date no . 1 2 3 4 5 6 7

Topics covered in the tutorial General terms of economics Evolution of National income estimation in India Key economic issues What are the implications of fiscal slippages? Is there a credit crisis in India? Inflation and commodities prices National income and consumption and investment function Budget deficits and its implication- A case of Indian Economy Business cycles and macroeconomic policies Globalization and recession Revision of syllabus

Activities (like quiz, case study, doubt clearing, any other) Faculty Presentation Students presentation Discussion Student presentation and doubt clearing/ Case based presentation Student presentation and doubt clearing/ Case based presentation Group Discussion Quiz

8 9 10 11

Student presentation and doubt clearing/ Case based presentation Student presentation and doubt clearing/ Case based presentation Presentation Doubt clearing