Unit - 1 
The labour market, Wage determination; wages, prices and employment; natural rate of unemployment; from employment to output

Unit - 2
Aggregate demand and aggregate supply curves Derivation of aggregate demand and aggregate and supply curves; interaction of aggregate demand and supply to determine equilibrium output, price level and employment

Unit - 3
Inflation, unemployment and expectations Phillips curve; adaptive and rational expectations; policy ineffectiveness debate.

Unit - 4
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

Investment: determinants of business fixed investment; residential investment and inventory investment

Demand for money

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.

Keywords
Aggregate demand, aggregate supply, inflation, unemployment, expectations


Amendment as per the last meeting on 11th August, 2020
*As per the notice on DSE Website