# Macroeconomics Analysis

Dr. Priya Vij
Dr. Namrata Anand
Last Update September 18, 2021

This course will help you to study topics such as GDP, unemployment rates, national income, price indices, output, consumption, unemployment, inflation, saving, investment, energy, international trade, and international finance. Macroeconomics and microeconomics are the two most general fields in economics.

Course Outcomes

After completion of this course, the students will be able to:

1 Evaluate dynamic macroeconomic issues

2 Familiarize with micro-foundations to various aggregative concepts

3 Analyze the importance of fiscal and monetary policy for economic growth

4 Examine exchange rate determination theory and policy under open economy

Part-A

Unit-1: Classical Macroeconomics

1.1 Classical revolution: Say’s low and classical dichotomy, consumption and saving, production function, labour, market analysis

1.2 Equilibrium output and employment; quantity theories of money

1.3 Loanable funds market and determination of interest rates; policy implications of classical equilibrium model.

Unit-2: Simple Keynesian Model

2.1 Concept of intended aggregate demand, aggregate effective demand; consumption and saving function

2.2 Income determination; concept of multiplier and investment expenditure, tax-cut multiplier versus balanced budget multiplier

2.3 Exports-imports multiplier; paradox of thrift; policy implication.

Unit-3: IS-LM Model

3.1 Product market equilibrium: derivation of IS curve including its slope and possible shifts

3.2 Money market equilibrium: derivation of LM curve including its slope and possible shifts; liquidity trap, underemployment equilibrium

3.3 IS-LM equilibrium and its stability; monetary/fiscal policy effects on equilibrium output and interest rate; crowding out effect.

Part-B

Unit-4: Keynesian versus Classical Models

4.1 Mathematical formulation of Classical and Keynesian models and their graphical representation

4.2 Comparison between Classical and Keynesian models

4.3 Wage-price rigidity/flexibility; Pigou effect and full-employment equilibrium.

Unit-5: Aggregate Demand and Supply of Economy

5.1 Derivation of aggregate demand curve; classical aggregate supply curve (wage-price flexibility)

5.2 Keynesian aggregate supply curve (down-ward rigidity)

5.3 Factors affecting aggregate supply; macroeconomic equilibrium (Keynesian and Classical cases).

Unit-6: Inflation and Unemployment

6.1 Sticky price model and short run aggregate supply curve

6.2 Phillips curve versus aggregate supply curve; short run and long run Phillips curve; adaptive expectations and inflation inertia; rational expectations and disinflation

6.3 Phillips curve and natural rate of unemployment.

66 Lessons

### 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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English

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