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**The Intermediate Macro Economics – I Course for BA (Hons) Economics Semester III, Delhi University has been taught by Mr. Dheeraj Suri. The Video Lectures are based upon the books prescribed by the University of Delhi. The Duration of Video Lectures is approximately 50 Hours.**

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**Full Course Video Lectures****Complete Study Material (PDF Notes) which includes Concepts, Previous Year Questions, Numerical Questions, MCQ’s and Important Questions****Online Discussion Forum to Post Your Queries to Discuss with Faculty & other fellow Students****Live online Doubts Sessions (at least twice a week) for resolution of Doubts****Mock Tests at the Website****Video Lectures Cover Theory Portions Exchaustively + Complete Solutions of Back Questions of readings + Solutions of Previous Years Papers + Large Number of Numericals**

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**Demo Lectures**

**Demo Lectures****Demo PDF of Study Material**

Chapter-5-Aggregate-Supply

**Demo PDF of Study Material****Demo Quiz**

**Exam Pattern**

**Assessment** :

**1. Internal Assessment (25 marks): The internal evaluation will consist of two class tests of 10 marks each, with 5 marks being allocated for attendance.**

**2. The End-semester Examination (75 marks) :The question paper of end-semester examination will have two sections (A and B).Section A will ask 6 short-types of answer out 7 questions, giving equation weightage to each topic.**

**Section B would ask to answer 3 out of 4 long-type of questions (preferably from one topic with possible sub-parts). Two questions from topics 1, 2 and 3 and two questions from Topic 4 are suggested. All question (in short and long types) can be mathematical in nature.**

**Click Here for Reading List of Intermediate Macro Economics – I**

**Course Content**** of Our ****Video Lectures**

**Course Content****of Our****Video Lectures****Chapter 1 : Review of IS LM [272 Minutes]**

**Based Upon Topics of Semester 2**

**Number of Lectures 6 Lectures**

**Total Duration 272 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 4 Tests**

**Important Topics Covered : Aggregate Demand, IS Curve, LM Curve, Simultaneous Equilibrium of Goods & Money Markets **

**Unit – I : The Labour Market**

**Unit – II : Aggregate Demand & Aggregate Supply Curves**

**Chapter 2 to Chapter 6 Cover Unit I and Unit II**

**Chapter 2 : Monetary & Fiscal Policy [306 Minutes]**

**Based Upon Dornbusch & Fischer Chapter 5**

**Number of Lectures 8 Lectures**

**Total Duration 306 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 3 Tests**

**Important Topics Covered : Monetary Policy, Open Market Operations, Transmission Mechanism, ****Liquidity Trap (Keynesian Case), Classical Case,** **Fiscal Policy, Crowding Out, Investment Subsidy, Policy Mix **

**Liquidity Trap (Keynesian Case), Classical Case,**

**Chapter 3 : Aggregate Demand [140 Minutes]**

**Based Upon Dornbusch & Fischer Chapter **7

**Based Upon Dornbusch & Fischer Chapter****Number of Lectures 4 Lectures**

**Total Duration 140 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 2 Tests**

**Important Topics Covered : Derivation of Aggregate Demand Curve, Effects of Monetary & Fiscal Expansion, Keynesian & Classical Aggregate Supply Curve, The Neutrality of Money **

**Chapter 4 : Labour Market [145 Minutes]**

**Based Upon Olivier Blanchard Chapter 6**

**Number of Lectures 2 Lectures**

**Total Duration 145 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 2 Tests**

**Important Topics Covered : Labour Force, Unemployment, Labour Force Participation Rate, Wage & Price Determination, Wage Setting & Price Setting Relation, The Natural Rate of Unemployment **

**Chapter 5 : Aggregate Supply [199 Minutes]**

**Based Upon Olivier Blanchard Chapter 7**

**Based Upon Olivier Blanchard Chapter 7**

**Number of Lectures 2 Lectures**

**Total Duration 199 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 2 Tests**

**Important Topics Covered : Derivation & Properties of Aggregate Supply Curve, Derivation & Properties of Aggregate Demand Curve, Equilibrium in Short Run & Medium Run, Effects of Demand & Supply Shocks **

**Chapter 6 : Nominal & Real Interest Rate [50 Minutes]**

**Based Upon Olivier Blanchard Chapter 14.1**

**Number of Lectures 1 Lectures**

**Total Duration 50 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 2 Tests**

**Important Topics Covered : Inflation, Nominal & Real Interest Rate and IS-LM Curves **

**Unit – III : Inflation, Unemployment & Expectations**

**Chapter 7 : Phillips Curve [150 Minutes]**

**Based Upon Olivier Blanchard Chapter 8**

**Number of Lectures 2 Lectures**

**Total Duration 150 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 2 Tests**

**Important Topics Covered : Relation Between Inflation, Expected Inflation & Unemployment, Phillips Curve, Modified Phillips Curve, Natural Rate of Unemployment, Wage Indexation **

**Chapter 8 : Okun’s Law [149 Minutes]**

**Based Upon Olivier Blanchard Chapter 9**

**Based Upon Olivier Blanchard Chapter 9**

**Number of Lectures 3 Lectures**

**Total Duration 149 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 2 Tests**

**Important Topics Covered : Okun’s Law, Phillips Curve, Aggregate Demand Relation, Disinflation, Point Years of Excess Unemployment, Sacrifice Ratio, Lucas Critique, Nominal Rigidities & Staggerring of Wages**

**Chapter 9 : Expectations [144 Minutes]**

**Based Upon Attfield, Demery & Duck Chapter 1 & 2**

**Number of Lectures 2 Lectures**

**Total Duration 144 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 2 Tests**

**Important Topics Covered : Meaning of Expectations, Adaptive Expectations, Rational Expectations, Characteristics & Limitations of Rational Expectations **

**Chapter 10 : Policy Ineffectiveness Preposition [151 Minutes]**

**Based Upon Steven Sheffrin Chapter 2**

**Based Upon Steven Sheffrin Chapter 2**

**Number of Lectures 2 Lectures**

**Total Duration 151 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 2 Tests**

**Important Topics Covered : Expectations & Phillips Curve, Lucas Account of Business Cycle, Signal Extraction Problem, Derivation of Policy Ineffectiveness Proposition**

**Unit – IV : Micro Economic Foundations**

**Chapter 11 : Consumption [238 Minutes]**

**Based Upon Branson Chapter 12**

**Number of Lectures 4 Lectures**

**Total Duration 238 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 2 Tests**

**Important Topics Covered : Keynesian Consumption Function, Simon Kuznets & Consumption Puzzle, Inter Temporal Choice, Permanent Income Hypothesis, Life Cycle Hypothesis, Permanent Income & Adaptive Expectations, Random Walk Model **

**Chapter 12 : Investment [155 Minutes]**

**Based Upon Dornbusch & Fischer Chapter 12**

**Based Upon Dornbusch & Fischer Chapter 12**

**Number of Lectures 3 Lectures**

**Total Duration 155 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 2 Tests**

**Important Topics Covered : ****Business Fixed Investment,** **Neoclassical Approach, Determination of Desired Capital Stock, Flexible Accelerator Model, Credit Rationing, Residential Investment, Q Theory of Investment, Inventory Investment, Rate of Return**

**Business Fixed Investment,**

**Chapter 13 : Demand for Money [200 Minutes]**

**Based Upon Branson Chapter 14**

**Number of Lectures 5 Lectures**

**Total Duration 200 Minutes**

**Number of Questions in Notes Questions**

**Number of MCQ Tests on this Chapter 2 Tests**

**Important Topics Covered : Demand for Money, Regressive Expectations Model, Portfolio Balance Approach, Transaction Demand for Money, Precautionary Demand for Money **

**Solutions of Previous Year Papers**

**2021 Paper**

**Duration of Lectures : 110 Minutes**

**2020 Paper**

**Duration of Lectures : 100 Minutes**

**2019 Paper**

**Duration of Lectures : 100 Minutes**

**2018 Paper**

**Duration of Lectures : 120 Minutes**

**End of Syllabus**

**Syllabus for Intermediate Macro Economics – I as Prescribed by University of Delhi**

Reading-List-Macro-Eco**Course Description**

**Intermediate Macroeconomics I (HC32)**

Core Course (CC) Credit: 6

Core Course (CC) Credit: 6

**Course ObjectiveThis is the second module of a three-module sequence on Macroeconomics. This course introduces students to formal modelling of the macroeconomy in terms of analytical tools. It discusses various alternative theories of output and employment determination in a closed economy in the short run as well as medium run, and the role of policy in this context. It also introduces students to various micro-founded theories of macro behaviour, e.g., consumption and investment behaviour of households and the demand for money generated in the household sector.**

**Course Learning OutcomesThis course enables students to analyse the macroeconomic performance of various countries using formal analytical tools. It also allows them to evaluate important macroeconomic policies and their implications.**

**Unit 1The labour market Wage determination; wages, prices and employment; natural rate of unemployment; from employment to output**

**Unit 2Aggregate demand and aggregate supply curves Derivation of aggregate demand and aggregate and supply curves; interaction of aggregate demand and supply to determine equilibrium output, price level and employment**

**Unit 3Inflation, unemployment and expectations Phillips curve; adaptive and rational expectations; policy ineffectiveness debate**

**Unit 4Microeconomic foundations Consumption: Keynesian consumption function; Fisher‘s theory of optimal intertemporal choice; lifecycle and permanent income hypotheses; rational expectations and random walk of consumption expenditureInvestment: determinants of business fixed investment; residential investment and inventory investmentDemand for money**

**References**

**Abel, A., Bernanke, B. (2016). Macroeconomics, 9th ed. Pearson Education.****Blanchard, O. (2018). Macroeconomics, 7th ed. Pearson Education.****Branson, W. (2013). Macroeconomics: Theory and policy, 3rd ed, East West Press.****Dornbusch, R., Fischer, S., Startz, R. (2018). Macroeconomics, 12th ed. McGraw-Hill.****Jones, C. (2016). Macroeconomics, 4th ed. W. W. Norton.****Mankiw, N. (2016). Macroeconomics, 9th ed. Worth Publishers.**