General equilibrium

General equilibrium

Bachelor of Business Studies (BBS) — Second Year

Subject: Macroeconomics for Business (MGT 209)

Unit 5: IS-LM Model of Income Determination

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of general equilibrium.
• Explain the economic model or issue, identify its assumptions and interpret the relevant diagrams, calculations or dated evidence.

Curriculum Scope

• Simultaneous product- and money-market equilibrium

Detailed Microsyllabus

1. IS–LM equilibrium

   1. Combine product- and money-market conditions.
   2. Identify simultaneous equilibrium income and interest.
   3. State the model's price-level assumption.

2. Solving the model

   1. Use diagrams or supplied equations.
   2. Check both equilibrium conditions.
   3. Interpret disequilibrium and adjustment pressures.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 24-26.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Nepalese current-status discussions should identify the reporting period and use dated official publications, such as Nepal Rastra Bank reports, rather than undated figures.