Utkal University, Odisha, General Semester 2, Macroeconomics Syllabus

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Unit - 1 Introduction

1.1 Introduction – concepts and variables of macroeconomics income expenditure and the circular flow components of expenditure.

1.2 Static macro economic analysis short and the long run – determination of supply determination of demand and conditions of equilibrium

Unit - 2 Economy in the short run

2.1 Economy in the short run – IS–LM framework fiscal and monetary policy determination of aggregate demand shifts in aggregate demand aggregate supply in the short and long run and aggregate demand aggregate supply analysis.

Unit - 3 Inflation and Unemployment

3.1 Inflation causes of rising and falling inflation inflation and interest rates social costs of inflation.

3.2 Unemployment – natural rate of unemployment frictional and wait unemployment.

3.3 The tradeoff between inflation and unemployment

Unit - 4 Open economy

4.1 Open economy – flows of goods and capital saving and investment in a small and a large open economy exchange rates Mundell – Fleming model with fixed and flexible prices in a small open economy with fixed and with flexible exchange rates interestrate differentials case of a large economy.

Unit - 5 Behavioural Foundations

5.1 Behavioral Foundations Investment –determinants of business fixed investment effect of tax determinants of residential investment and inventory investment.

5.2 Demand for Money – Portfolio and transactions theories of demand for real balances interest and income elasticity of demand for real balances Supply of money.

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Other Subjects of Semester-2-
Corporate laws
Corporate accounting
English communication
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