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SIVA SIVANIINSTITUTE OF MANAGEMENT

MACRO ECONOMICS
COURSE CODE: T124 BATCH: XVII
CREDIT: 1.5 TERM : II
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OBJECTIVE:
Objective of this course is to introduce the students to Macro Economic Analysis. It
also aims at understanding how Macro Economic Environment will impact the
Managerial Decisions.
Value A!"!#$:
At the end of the course, students will be in a position to understand the lin
between different macro variables and analy!e the implications of changes in macro
economic policies on "usiness.
S%&&ABUS:

U$!" I:
Na"!#$al I$'#(e A$al)*!*: Definition, #ircular $low of Income,
Methods of measurement of %ational Income and problems involved,
#oncepts of %ational Income, Measurement of %ational Income in India,
&rends in %ational income and 'ectoral (rowth of Indian Economy.

U$!" II:
De"e+(!$a$"* #, Na"!#$al I$'#(e - .e)$e*!a$ A$al)*!*:
#onsumption $unction) Absolute Income *ypothesis, +elative Income *ypothesis,
,ermanent Income *ypothesis and -ife #ycle *ypothesis. Investment $unction)
ME#, MEI, Multiplier, ,rinciple of Acceleration, 'uper Multiplier.

U$!" III:
E'#$#(!' G+#/"0 a$ De1el#2(e$": Meaning and Definition of (rowth
and Development, $actors influencing (rowth and Development, #lassification of
the countries depending on (rowth and Development, #haracteristic features of
Developed and Developing economies, #haracteristic features of Indian Economy.
U$!" IV:
I$,la"!#$: Definition of Inflation, Measurement
of Inflation, &ypes of inflation, #auses of Inflation, Measures to control
inflation, Inflation and .nemployment.
U$!" V:
Bu*!$e** C)'le*: Definition of "usiness #ycles,
Different 'tages of "usiness #ycles, #auses and &heories of "usiness
#ycles, Measures to control "usiness #ycles.
BASIC TEXT:
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RECOMMENDED READINGS:
Dornbusch and $ischer, /001, Macro Economics, &ata Mc (raw2*ill ,ublishing
#o. -td., %ew Delhi.

#.+anga +ajan 3 Dholaia , Principles of Macro Economics, &ata Mc (raw2
*ill ,ublishing #o. -td., %ew Delhi.

+.D (upta, Keynes and Post Keynesian Economics, 4alyani ,ublishers, %ew
Delhi.
'hapiro Edward, 5667, Macroeconomic Analysis, (algotia ,ublications, %ew
Delhi.
'chult!e #harles -, 5689, National Income Analysis, ,rentice *all of India ,vt.
-td., %ew Delhi.
:hingan M -, 566/, The Economics of Development and Planning, 4onar
,ublishers, Delhi.