MACROECONOMICS

PGP: Term 3,
2017-18
Course Information

Text Books: The assigned text is ‘Macroeconomics’ 9th edition. Selected chapters and
pages corresponding to each module will be assigned for reading. Additional reading will
be provided in class where required.

Grading: There will be two in-class, closed book and closed notes quizzes during the
term. These will together constitute 50% of the final grade. The final exam will be
cumulative and account for the remaining 50% of the final grade. Attendance is per
institute there is no additional provision for absences. Participation in competitions
etc will have to be managed within the cushion that is provided.

Course outline: The course consists of 8 modules covering 20 lectures. Details of each
module and required readings are provided below. Additional readings will be provided in
the class.
 COURSE OUTLINE and SCHEDULE of LECTURES

Topic Reading No. of Lectures

Module 1: The Data in Macroeconomics 3
 National Income Accounts Ch. 2,3
Class notes
Module 2: Consumption and Investment Ch. 16,17 2
Class Notes
 Theories of Consumption and Investment

Module 3: The Economy in the Short Run 3

 Keynesian Approach Ch. 11

 IS-LM Model Class Notes

Quiz 1: To be held during midterm week

Module 4: Inflation Chapter 5, 14 3

 Money and Inflation in the long run
 Short run trade-off between Inflation and
Unemployment
 Aggregate supply

Module 5: Aggregate Demand and Supply Chapter 12 2

Class Notes
 Explaining business cycles
 AD-AS

Module 6: Fiscal Policy 2

 Budget deficit, Public Debt Class Notes

 Recent trends and policy issues in India

Quiz 2

Module 7: Monetary Policy Chapter 4 3

Class Notes
 Money Supply and Credit Policy
Module 8: Open Economy Macroeconomics Chapter 13 2
Class Notes
 Balance of Payments
 IS-LM in the open Economy
Final Exam will be based on Modules 4-8