Unit - 1 

Short-run and medium-run equilibrium 

The labour market, Wage determination; wages, prices, and unemployment; natural rate of unemployment; from employment to output
Blanchard,Ch. 6 p. 117-138

Derivation of aggregate supply curve, Interaction of aggregate demand and supply to determine equilibrium output, price level and employment

Blanchard, Ch. 7 p. 139-163

Unit - 2

Philips curve and theory of expectations 

Inflation, unemployment and expectations, Phillips Curve
Blanchard, Ch. 8-9 p. 165-202; Ch 14 p. 292-294, 300-308

Adaptive and rational expectations; policy ineffectiveness debate Attfield, Demery and Duck, p. 6-9, 18-28; Sheffrin p. 34-40


Unit - 3

Microeconomic foundations of macroeconomic behaviours

Microeconomic foundations Consumption: Keynesian consumption function; Fisher‘s theory of optimal intertemporal choice; lifecycle and permanent income hypotheses; rational expectations and random walk of consumption expenditure
Branson, p. 239-264 (excluding the section on Permanent Income and Adaptive Expectations), 268-273 (excluding the section on Choice Structure and Disequilibrium)

Investment: determinants of business fixed investment; residential investment and inventory investment
Jones, Ch. 17, p. 470-495


References Books
1. Abel, A., Bernanke, B. (2016). Macroeconomics, 9th ed. Pearson Education.
2. Blanchard, O. (2018). Macroeconomics, 7th ed. Pearson Education.
3. Branson, W. (2013). Macroeconomics: Theory and policy, 3rd ed, East West Press.
4. Dornbusch, R., Fischer, S., Startz, R. (2018). Macroeconomics, 12th ed. McGraw-Hill.
5. Jones, C. (2016). Macroeconomics, 4th ed. W. W. Norton.
6. Mankiw, N. (2016). Macroeconomics, 9th ed. Worth Publishers.


Assessment:
1. Semester-end Examination: 90 marks
The question paper will have roughly equal weightage from all three units. The paper will consist of three sections of 30 marks each:
• Section A will have 15 MCQs/one-line-answer questions of 2 marks each, with no choice of any kind.
• In Section B students will be required to do any 6 out 8 questions of 5 marks each.
• In Section C students will be required to do any 3 out of 4 questions of 10 marks each.

2. Internal Assessment (IA): 30 marks
• 6 marks will be for attendance
• 24 marks will be based on at least two tests of 12 marks each.

3. Continuous Assessment (CA): 40 marks
• 5 marks will be for attendance
• 35 marks will be based on assignments/tests or any other mode of assessment as suggested by the University