Macro-economics syllabus

Macro-economics

• 1 Introduction to Macroeconomics (8 LHs)

  • Concept and scope of macroeconomics
  • Importance, uses and issues of macroeconomics
• 2 National Income Accounting (10 LHs)

  • Concept of national income
  • Expenditure, income and product measurement methods
  • Measurement difficulties
  • Importance and use of national income
• 3 Components of Macroeconomics (10 LHs)

  • Consumption function: APC, MPC, psychological law and determinants
  • Saving: paradox of thrift and determinants
  • Investment: marginal efficiency of capital and determinants
  • Multiplier: leakages and importance
  • Classical and Keynesian theories of employment
• 4 Theories of Inflation and Trade Cycle (10 LHs)

  • Inflation and deflation; factors influencing inflation
  • Computation of inflation rate
  • Effects and control of inflation
  • Trade cycle phases and economic stabilization policy
• 5 Monetary and Fiscal Policy (10 LHs)

  • Monetary policy: objectives and instruments
  • Demand and supply of money
  • Fiscal policy: objectives and instruments
  • Fiscal policy significance in developing countries