ANNEXURE I

AC –
Item No. –
As Per NEP 2020

Tolani College of
Commerce
(Autonomous)

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 Programme: Bachelor of Commerce (B.Com.)
Title of the Course: Business Economics-III
(Semester III)

Syllabus for 4 credit Course From the academic year 2024-2025

Name of the Course: Introduction to Macroeconomics

Sr. Heading Particulars

No.

1 Description the course: This course provides students with a comprehensive understanding
of macroeconomics, focusing on the measurement of national
Including but Not limited to: income, economic fluctuations, aggregate demand and supply, and
the role of money in influencing inflation. Through a combination
of theoretical concepts and real-world applications, students will
gain insights into how economies function on a national scale. The
course explores the key determinants of economic performance,
the impact of fluctuations in the business cycle, and the role of
monetary policy in shaping economic outcomes.
2 Vertical: Minor
3 Type: Theory
4 Credit: 4 credits
5 Hours Allotted: 60 Hours
6 Marks Allotted: 100 marks
7 Course Objectives: By end of this course student should be:
1) able to demonstrate a comprehensive understanding of fundamental macroeconomic concepts and
principles, including the factors that influence overall economic performance, the role of government
policies, and the interplay between macroeconomic variables.
2) to apply various methods and tools to accurately measure a nation's income and assess its economic
performance. This includes an understanding of Gross Domestic Product (GDP), its components, and
the ability to interpret economic data to evaluate the health of an economy.
3) proficient in analyzing the causes and consequences of economic fluctuations, such as recessions and
booms. They should also be able to apply the concepts of aggregate demand and aggregate supply to
explain how changes in factors like government spending, consumer behavior, and investment influence
the overall level of economic output.
4) able to develop a deep understanding of the monetary system, its functions, and how changes in the
money supply impact inflation and price levels. Additionally, they should be able to critically assess
the implications of monetary policy decisions made by central banks and their effects on the overall
economy.
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8 Course Outcomes: Upon completion of this course students will be:
1) able to assess the overall economic performance of a country by evaluating various macroeconomic
indicators, such as GDP, unemployment rates, and inflation, and understand their significance in
determining the health of an economy.
2) equipped to describe and analyze economic fluctuations, including recessions and expansions, using
the concepts of aggregate demand and aggregate supply. They will understand the causes and
consequences of these fluctuations on businesses and individuals.
3) able to gain a deep understanding of the role of money and the central bank in influencing inflation
rates. They will be able to evaluate the effectiveness of monetary policy tools, such as interest rates and
money supply, in controlling inflation and ensuring economic stability.
4) able to interpret and analyze national income data to gauge the overall economic health of a nation.
They will be proficient in calculating GDP, GNP, and other key economic indicators, and understand
their implications for public policy and decision-making.

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9 Module 1: Introduction to Macroeconomics (15 hours)
• Macroeconomics: Meaning, features, goals, and importance.
• Methodology of macroeconomics.
• Historical developments of macroeconomics.
• The Three Spheres of Economic Activity: The Core Sphere, The Public-Purpose Sphere and
The Business Sphere.
• Application of macroeconomics to business decision-making.
Module 2: Measuring of National Income (15 hours)
• National Income: Meaning, features, and importance.
• Concepts related to national income.
• Methods of Measuring National Income: Income, Expenditure, and Production or Value-
Added Methods.
• Alternative Approaches to Measure GDP: The Genuine Progress Indicator, the Better Life
Index, the Human Development Index, the Happy Planet Index, and the Green National
Accounting.
• Nominal versus Real National Income.
Module 3: Economic Fluctuations, Aggregate Demand and Aggregate Supply (15 hours)
• Meaning of Business Cycle- A stylized business cycle, macroeconomics variables and the
business cycle.
• Macroeconomic modelling and aggregate demand: Assumptions, output and income, and the
problem of leakages.
• The Keynesian Model: Consumption Function, investment, the aggregate demand schedule,
the possibility of unintended investment, equilibrium in the Keynesian Model, and the
employment multiplier.
• The Aggregate Supply Curve: The Phillips Curve, Shifts of the AS Curve due inflationary
expectations and supply shocks and AS/AD Model together.
• Fiscal and monetary Policy, supply shocks, investor and consumer confidence and
expectations.
Module IV: Money and Inflation (15 hours)
• Money Supply: Determinants of money supply, factors influencing velocity of circulation of
money.

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 • Demand for Money: The Keynesian Theories of Money Demand-The Monetarist View of
Money: The Quantity Theory of Money-The Keynesian/Monetarist Debate-Portfolio
Theories of Money Demand.
• Inflation: Meaning, measurement and types-Demand Pull Inflation and Cost Push Inflation -
Effects of Inflation.
• Policy measures to curb inflation: Fiscal, Monetary and Other measures.
• Monetary policy and Inflation targeting.
10 References:
1) D'Souza, Errol. Macroeconomics. 2. New Delhi: Pearson, 2012.
2) D.N. Dwivedi. Managerial Economics. 8. New Delhi: Vikas Publishing House,2016.
3) Karl Case, Ray Fair and Sharon Oster. Principles of Macroeconomics. 12. New Delhi: Pearson,
2020.
4) Mankiw, N. Gregory. Principles of Economics. 6. New Delhi: Cengage Learning Pvt. Ltd., 2017.
5) Mishkin, Frederic S. Macroeconomics: Policy and Practice. 2. New Delhi: Pearson, 2017.
6) Nag, A. Macroeconomics for Management Students. 2nd . Delhi: MacMillan Publishers India
Ltd., 2009.
7) Neva Goodwin, Jonathan Harris, Julie Nelson, Brian Roach and Mariano. Macroeconomics in
Context. New Delhi: Routledge, 2017.
8) Santhakumar, V. Economics in Action: An Easy Guide for Development Practitioners. New
Delhi: Sage Publications, 2013.

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 11 Internal Continuous Assessment: 40% Semester End Examination: 60%

12 Continuous Evaluation through:

Sub-components Maximum Minimum Passing Marks in Each of

Marks the Sub-components

1) Written assignment of 1000 words involving 15 A learner must be present for each
analysis of events related to the course taken from a of the sub-components.
newspaper, magazine, journal etc.
2) Book review. The book selected must be approved 15
by the teacher. A report of 1000 words must be
submitted.
3) MCQ Based Test 10
Total 40
13 Format of Question Paper: for the final examination

Question Paper Pattern for Semester End Examination (SEE)

Maximum Marks: 60 Duration: 2 hours.

Note: All questions are compulsory. Each question has an internal choice.

Question Nature of Questions Maximum From

Number Marks

1) Attempt any 1 question out of the following 3: 15 marks Module I

a) Full length question

b) Three Notes (5 Marks Each)

c) Application/Numerical Question

2) Attempt any 1 question out of the following 3: 15 marks Module II

a) Full length question

b) Three Notes (5 Marks Each)

c) Application/Numerical Question

3) Attempt any 1 question out of the following 3: 15 marks Module III

a) Full length question

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 b) Three Notes (5 Marks Each)

c) Application/Numerical Question

4) Attempt any 1 question out of the following 3: 15marks Module IV

a) Full length question

b) Three Notes (5 Marks Each)

c) Application/Numerical Question

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