Course No:           Act 320

Course Name:      Economics - 2 (Macro)

Course Description:      

Introduction:     Microeconomics     Vs     Macroeconomics; Issues     in macroeconomics; Key Macroeconomic Concepts.

National  Income  Accounting:  National   income;  Gross   Domestic   Products Measurement of GDF; Price indexes.

Income and Spending: Consumption Function; S on; Investment Function; Aggregate Demand; Equilibrium Level of income; The Multiplier.

Goods & Money Market: The Goods Market and IS curve; The Money Market and LM curve; Simultaneous Equilibrium in Goods & Money Market.

Monetary & Fiscal Policy: Objectives and Tools of Monetary Policy; Fiscal Policy, Crowding Out and Policy Mix.

Balance of Payment & Exchange Rate: Definition of Balance of Payment Current Account and Capital Account; Fixed and Flexible Exchange rate; The Mundell-Fleming Models. .

Course Review:

The purpose of this course is to introduce basic macroeconomic concepts like national income accounting, GDP, price indices, consumption, saving and investment functions, aggregate demand, goods and money market, IS and LM curves, simultaneous equilibrium in goods and money market, monetary and fiscal policy, and balance of payment and exchange rates.