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Macroeconomics for Business syllabus

ECO 2045 units · 19 topicsAcademic year 2083/84
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1. Introduction to Macroeconomics (3 LHs)

  1. Macroeconomics
    1. Macroeconomics: concept and scope, Relationship between macroeconomics and economic environment for business
  2. Circular flow of income and expenditure in a closed and open economy
    1. Circular flow of income and expenditure in a closed and open economy.

2. National Income Accounting (5 LHs)

  1. National income accounting
    1. National income accounting: concepts
  2. GDP
    1. GDP: concepts and measurement
  3. Other national accounts
    1. Other national accounts: NDP, GNP, NNP, NI, PI, GNDI, DI and per capita income, Nominal GDP, Real GDP, price indexes, and inflation.

3. Consumption, Saving, and Investment (4 LHs)

  1. Consumption function
    1. Consumption function: concept, technical attributes, and determinants
  2. Saving function
    1. Saving function: concept, technical attributes, and determinants
  3. Investment function
    1. Investment function: concept and types, concept of MEC and investment demand curve, investment function, and determinants of investment.

4. Theories of Employment and Income Determination (10 LHs)

  1. Classical theory of employment
    1. Classical theory of employment
  2. Keynesian model of income determination in a closed and open economy
    1. Keynesian model of income determination in a closed and open economy
  3. Multiplier
    1. Multiplier: investment multiplier, fiscal multipliers (tax multiplier, government expenditure multiplier), and foreign trade multiplier
    2. Paradox of thrift
  4. IS- LM Model of Income Determination
    1. IS- LM Model of Income Determination: derivation of IS and LM curves, determination of equilibrium income, Effects of monetary and fiscal policies on equilibrium income.

5. Macroeconomic Issues and Policies (10 LHs)

  1. Inflation
    1. Inflation: concept and computation, demand-pull and cost-push inflation, effects
  2. Concept of deflation and stagflation
    1. Concept of deflation and stagflation
  3. Unemployment
    1. Unemployment: concept and types, costs of unemployment
  4. Business cycles
    1. Business cycles: concept, and phases. Money supply: concepts
  5. Balance of payments
    1. Balance of payments: concepts and components, Exchange rate: concept and types
  6. Concepts of economic growth and development
    1. Concepts of economic growth and development
  7. Monetary policy
    1. Monetary policy: concepts, types, instruments, and goals, Fiscal policy: concepts, methods, instruments, and goals