Macro Economic Theory II

Paper Code: 
COM 604
Contact Hours: 
Max. Marks: 

To explain the advanced concepts of Macroeconomics and various aspects of consumption, investment function, multiplier concept and business cycle.

Consumption function – Meaning, Attributes of Consumption functions, Significance of Marginal Propensity to Consume, psychological law of consumption, Determination of consumption functions07


Investment function – Meaning of Investment, types of investment,Marginal efficiency of capital, Marginal Efficiency of Capital and Investment demand curve, Marginal Efficiency of Capital and rate of interest, factors affecting marginal efficiency of capital.


Concept of Multiplier – Working of Multiplier, Assumptions of Multiplier, Leakages of Multiplier, Significance and Limitation of Multiplier.
Accelerator- Meaning, Principles, Difference between Multiplier-Accelerator.


Inflation – Introduction, Meaning, Inflationary Gap, Demand- Pull and Cost –Push Inflation, Effects and Control of Inflation.


Business Cycles – Meaning and Nature, Phases of Business Cycle – Recovery, Propriety, Recession, Depression.
Theory of Trade Cycle – Schumpeter Theory and Keynesian Theory, Criticism

Essential Readings: 

Macro Economic analysis - Edward Shapiro, Galgotia Publication, Delhi
Macro Economic theory - M.L. Seth, Laxmi Narayan Agarwal, Agra
Macro economic Theory – M.C. Vaish,Wishwa Prakashan, New Delhi
Macro Economic Theory, H.L.Ahuja, S.Chand & Sons Publication, Delhi
Dipsey R.G and Cheystal, Principles of economy, Oxford university Press

Academic Year: