Policy shifts

Policy shifts

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 policy shifts.
• Explain the economic model or issue, identify its assumptions and interpret the relevant diagrams, calculations or dated evidence.

Curriculum Scope

• IS and LM shifts from monetary and fiscal policy changes
• Effects on equilibrium
• Numerical exercises

Detailed Microsyllabus

1. Fiscal-policy shifts

   1. Government spending and taxation changes.
   2. IS movement and equilibrium effects.
   3. Interest feedback and possible crowding-out effects.

2. Monetary-policy shifts

   1. Changes in money supply or the specified monetary condition.
   2. LM movement and new equilibrium.
   3. Numerical comparison with assumptions stated.

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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.