Basic Macroeconomics

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Dr. Priya Vij
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Dr. Namrata Anand
Last Update September 14, 2021
3 already enrolled

About This Course

After This Course:

You will be able to understand the study of individuals, households, and firms’ behavior in decision-making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues. The syllabus that will be covered by this online program is:

Part-A

Unit-1: Macroeconomic Foundation

  • Concept of markets in macroeconomics: commodity, money & labor markets; concept of aggregate demand-supply & macro-equilibrium
  • Basics of economic growth, business cycles (recovery, prosperity, recession, depression); concept of ex-ante versus ex-post, potential versus actual, nominal versus real outputs
  • Policy instruments: fiscal policy versus monetary policy; basics of open economy macroeconomics and exchange rate; inflation and deflation, supply shock; unemployment
  • Development of macroeconomics: basic ideas of modern macroeconomics (introduction to Classical-Keynesian synthesis) and its new development (overview of New Keynesian/New Classical/Monetarism).

Unit-2: Theories of Consumption

  • Micro-foundation of aggregate consumption expenditure; subjective versus objective factors of consumption
  • Keynesian absolute income hypothesis (properties of short run function, marginal versus average propensity to consume and their relationship); Kuznets puzzle on consumption (long run constancy and short run variability)
  • Duesenberry approach: relative income hypothesis, ratchet effect; Ando and Modigliani approach: life cycle hypothesis and its implication
  • Friedman’s permanent income hypothesis; Hall’s random walk

Unit-3: Saving and Investment

  • Derivation of saving function from consumption (equation with diagram, propensity to save); concept of capital (classical definition, stock versus flow concept, properties of capital)
  • Basics of the theory of investment (Neo-classical view to determine level of investment); stock market and Tobin’s q
  • Keynesian theory: investment demand and marginal efficiency of capital, marginal efficiency of capital versus marginal efficiency of investment)
  • Saving-investment puzzle: paradox of thrift.

Unit-4: Money Supply and Demand

Part-B

  • Money and its functions: commodity versus fiat money
  • Quantity theories (Fisher versus Cambridge versions)
  • Liquidity preference: transactional and speculative/precautionary demand
  • Money supply determination and monetary

Unit-5: Theory of Inflation

  • Inflation and interest rates; Fischer effect, ex-ante/ex-post real interest rates
  • Social costs of inflation: layman’s view and classical response, costs of expected/unexpected inflation, benefits of inflation
  • Classical dichotomy and monetary neutrality; sources of inflation (concept of demand pull and cost-push inflation)
  • Deflation and its costs; concepts of structural inflation, disinflation/stagflation/ hyperinflation

Unit-6: IS-LM Model

  • Product market equilibrium: derivation of IS curve including its slope and possible shifts.
  • Money market equilibrium: derivation of LM curve including its slope and possible shifts; liquidity trap, underemployment equilibrium.
  • IS-LM equilibrium and its stability; monetary/fiscal policy effects on equilibrium output and interest rate.
  • Crowding out effect (full versus partial).

Curriculum

107 Lessons

Circular Flow of Economy

Circular Flow of Economy00:00:00
E-content_PDF00:00:00
Quiz
Quiz
Video00:00:00

Consumer Price Index (CPI)

Quantity theory of Money

Multiplier

Concept of markets in macroeconomics: commodity Market

Labor markets

Concept of aggregate demand-supply

Macro-equilibrium

Business cycles: Prosperity, Recovery, Recession Depression

concept of ex-ante versus ex-post

Potential versus actual

Policy instruments: fiscal policy

Policy instruments: monetary policy

inflation and deflation

Unemployment

Development of macroeconomics: basic ideas of modern macroeconomics (introduction to Classical-Keynesian synthesis

New development (overview of New Keynesian/New Classical/Monetarism)

subjective versus objective factors of consumption

Keynesian absolute income hypothesis

Kuznets puzzle on consumption

Duesenberry approach: relative income hypothesis

Ratchet effect

Ando and Modigliani approach: life cycle hypothesis and its implication

Friedman’s permanent income hypothesis; Hall’s random walk hypothesis.

Derivation of saving function from consumption

Basics of the theory of investment (Neo-classical view to determine level of investment

Keynesian theory: investment demand

Money and its functions

Quantity theories (Fisher versus Cambridge versions)

Liquidity preference: transactional and speculative/precautionary demand

ex-ante/ex-post real interest rates

Disinflation

Stagflation

Hyperinflation

Product market equilibrium: derivation of IS curve

Money market equilibrium: derivation of LM curve

IS-LM equilibrium and its stability

Your Instructors

Dr. Priya Vij

Assistant Professor

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I'am Masters of Business Economics from Panjab University, Chandigarh and Ph.D in Management from Punjab Technical University, Jalandhar . I' am UGC NET qualified and have academic work experience of more than 11 years, working with Punjab Technical University, Panjab University, Amity University, GD Goenka University and currently associated with Manav Rachna International Institute of Research & Studies.
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Dr. Namrata Anand

Assistant Professor

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I am presently working as an Assistant Professor at Manav Rachna International Institute of Research and Studies in Department of Economics. Previously I have worked with Indian Institute of Foreign Trade, affiliated with Ministry of Commerce and Industry, New Delhi. I have completed my Ph.D in Development Economics from Dayalbagh Educational Institute (Deemed University) Agra. My research work emphasis on sustainable poverty eradication in India through linking poverty eradication and sustainability. I have numerous research publications in reputed journal and books of the core areas of international economics, development economics and sustainability. Moreover I have attended various international, national conferences, workshops and FDPs.
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107 lectures
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