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2. Student Learning Outcomes
· Be able to develop a familiarity with the fundamentals of macro-economic principles
· Be able to understand the complexity and implications of fluctuations in macro-economic entities
· Be able to relate the nuances found in various theories and models to real life business environment

3. Required Text Books and Reading Material

Each of you will be provided with a text book, namely, “Macro Economics” by Abel Andrew B (etal.) for basic reference.

In addition, you are required to refer to any of the readings that are provided below against each topic. Supplementary readings of business related articles, reports and so on, published in periodicals, journals, news magazines and websites, are some of the key requirements for the course.

4. Tentative Session Plan

Session Number	Topics / Contents	Suggested Books (Name(s) of Author(s))
1	Introduction ü What does the subject matter of economics deal with? ü Resources of an economy ü Two-sector model of circular flow of economic activities ü Goals of an economy ü Challenges to achieve the goals	Milton Spencer G.L. Bach Michael Veseth
2,3,4	Overview: How do we measure an economy’s progress? ü Gross National Income and Product ü Approaches to estimating GNP ü Related indicators ü Deflating for inflation ü Is GNP a measure of society’s well being?	Milton Spencer Campbell and McConnell Adrian Perry G.L. Bach
5	Macroeconomic models – the Classical Approach ü Say’s law of markets ü Full employment equilibrium ü Critical appraisal of the model	Samuelson & Nordhaus Milton Spencer Campbell and McConnell
6,7	Macroeconomic models – the Contemporary Approach ü Effective demand ü Consumption function ü Investment function ü Multiplier and accelerator ü Determination of rate of interest	Samuelson & Nordhaus Milton Spencer Campbell and McConnell Slovin & Sushka Duncan Reekie
8,9,10	Business Fluctuations: What and Why? ü Phases of business cycles ü Business cycle theories ü Case analysis of various phases of business cycles	Samuelson & Nordhaus Poindexter
11	The Twin Traps: Inflation and Unemployment ü Inflation: Measures ü Inflation: Causes, Consequences and Cures ü Unemployment: Types and methods of measurement ü Unemployment or Inflation – the Phillip’s Curve ü Unemployment and Inflation – The Supply Shock ü Case analysis on the twin traps	Baumol & Blinder Samuelson & Nordhaus Heyne & Johnson Edwin Mansfield G.L. Bach
12,13	Money, Banking, Creation and Control of Credit ü Money: Definition, evolution, functions and composition ü Principles behind the issue of paper currency ü Functions of commercial banks ü Role of central bank ü Measures of credit control	Campbell & McConnell Adrian Perry Baumol & Blinder Milton Spencer Chisholm & McCarty Edwin Mansfield
14	Role of Government – How much should a Government do? ü Economic scope and functions of governments ü Social goods and redressal of spill-over effects ü Sources of revenue: where does the money come from? ü Public expenditure: where does the money go? ü Budget at a glance ü Fiscal deficits and its policy implications	Adrian Perry Baumol & Blinder Samuelson & Nordhaus Milton Spencer Campbell & McConnell
15	International trade and Balance of Payments ü Theories of absolute and comparative advantage ü Balance of Payments in a double entry book-keeping sense ü Measures to check imbalances in Balance of Payments ü Tariff and non-tariff barriers - their purpose and implications ü A case on voluntary export restraint	Lindert Adrian Perry Campbell & McConnell Milton Spencer Bo Sodersten

5. Evaluation

Components	Weights
Quizzes	20%
Mid-term Examination	25%
End term Examination	35%
Term paper	20%

The Submission deadlines for the term paper (hard copy only):
For the selection of a topic: Friday, 12th October 2012
For the submission (receipt) of term paper: Friday, 21st December 2012
Permissible grace period allowed for submission (receipt): Friday, 28th December 2012
Submissions reaching beyond 28th December 2012 will NOT be accepted

Hard copy of the term paper should be sent to the following address:

Ms. Reena Ravichander Xavier Institute of Management Bhubaneswar – 751013 Ph. (0674) 3983811

6. Academic Integrity

All norms pertaining to the academic discipline and integrity strictly apply to this course as well.

Created By: Debasis Mohanty on 09/25/2012 at 10:23 AM
Category: ExPGP-I Doctype: Document