Evaluation Component & Weightage

Sl. No

Type of Assessment

Weightage

Schedule in the session plan

1.

Quiz 1

6.25%

After completing Session 6

2.

Quiz 2

6.25%

After completing Session 12

3.

Mid Term Exam

25%

After completing Session 12

4.

Quiz 3

6.25%

After completing Session 16

5.

Quiz 4

6.25%

After completing Session 21

15%
35%

Sessions 2224
After completing Session 24

6.
7.

Presentations
End Term Exam

GROUND RULES
Dos

Donts

Pre-read of the relevant materials in NO CELL PHONES

the prescribed text a must.

Please let me know any difficulty with NO MEETING FOR ATTENDANCE

the topics discussed in the class.
Ask Questions - Discuss answers

NO DISCUSSION FOR MARKS/GRADES

Meet with prior appointment through NO ASKING FOR PPT

mail

Why has been Greece

economy in news??

What is Make in India campaign??

Macroeconomic concerns with both Theory and

Policy
Economic Theory
A description of what is.
Uses models to understand how the economy works.
Positive economics.
Economic Policy
A description of what should be, a value judgment.
Uses models to make policy recommendations.
Normative economics.

Macroeconomics is a model-based discipline

Aims to achieve certain Macroeconomic goals
using Policy tools to bring about
changes in Aggregates.

Macroeconomic Goals
Economic Growth
Employment Generation
Price Stability
Trade Balance
Redistribution of Wealth

Macroeconomic Policy Tools

Fiscal Policy
Monetary Policy

Macroeconomic Aggregates
GDP
Aggregate Consumption
Aggregate Investment
Total Employment
Wholesale and Consumer Price Indices
Money Supply
Bank Credit

Macroeconomic Models basically tell.

How the key economic variables are related to one another.
What happens to the endogenous variables if an exogenous
variable(s) changes.
Which policy tool would be effective in reaching the
macroeconomic goals.

Terms used in the Model

Exogenous variable: explained outside of the model.
Endogenous variable: explained inside of the model.
Constants and parameters: measures sensitivity of the
relationship between variables.

Several schools of thoughts exist.

Classical Economics
Keynesian Economics
Neo Classical Synthesis
Monetarist
New Keynesian Economics

The scope of MAEC course limits to Classical and Keynesian Models.

Macroeconomists Disagree
Theoretical Differences
About the structure of the economy.
About the sensitivity of the economy.
Policy Differences
About the appropriate role for government spending/taxing and monetary
policy.
Different Time Horizons
Many disagreements revolve around different, but unspoken, time horizons.

Main Concerns with managing Macroeconomy

Inaccurate Economic Data
Conflicting Policy Objectives
Selecting the right policy instruments
Uncertain time lags
External shocks

Difference between
Microeconomics
Micro is Greek for small.
Explains how markets work and
the economic decisions made
by individual units.
Is partial equilibrium analysis.
Provides a foundation for
macroeconomics.

Macroeconomics
Macro is Greek for large.
Explains how and why the
economy grows and fluctuates
over time based on the
decisions made at aggregate
level.
Is general equilibrium analysis.
Explains variables as given in
microeconomics.

Why Managers should study Macroeconomics?

Provides the environment in which business firms
operate.
Is essential for the formulation and evaluation of business
strategy in the light of macroeconomic environment.