Description

Vertical – 1 : Major

Macroeconomics : Analysis of Interaction Between Goods and Money Markets

SYBCOM Semester IV

Syllabus As Per NEP 2020 Academic Year 2025-26

Module 1 : The Goods Market (15 hours)
♦ Goods Market : Meaning and Components, Government Spending and its Impact on Economic Activity, Graphical Derivation of the IS Curve.
♦ Equilibrium Conditions in Goods Market, Interaction between Private Savings, Public Savings, and Investment Interact, Factors Influencing Investment Decisions : Interest Rates, Business Confidence, and Future Expectations.
♦ Demand-side Shocks due to Change in Consumption, Investment, or Government Spending, Supply-side Shocks due to Technological Advancements and Resource Limitations, Role of Government in Economic Stabilisation and Recovery.

Module 2 : The Money Market (15 hours)
♦ Money Market : Meaning and Components, The Transactional, Precautionary, and Speculative Motives Behind Demand for Money, Derivation of the LM Curve Graphically.
♦ The Conditions for Simultaneous Equilibrium Between Goods and Money Markets, Interest Rates and Level of Output Determinations Using the IS-LM Model, Simultaneous Equilibrium and Macroeconomic Stability.
♦ The Liquidity Trap and Monetary Policy, The Crowding-Out Effect: Impact of Increased Government Spending and Reduction in Private Investment, The Crowding-In Effect : Impact of Government Spending and Increase in Investment.