Managerial Economics-II
Subject Overview
Managerial Economics-II moves from the microeconomics of Managerial Economics-I to the macroeconomic environment a business actually operates within — national income, money, inflation, and the business cycle. You'll cover national income measurement and theories of money, inflation and unemployment theory (including the Phillips Curve), business cycle phases and monetary/fiscal policy, and close with India's macroeconomic framework — public finance and the tax system. This is a 6-credit General Elective paper across 4 units, completing the economics foundation started in Semester 1.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: National income & theories of money
Measuring national income and problems in measurement, nature and functions of money, types of money, theories of demand for money (Classical, Friedman's restatement, Keynesian liquidity preference), theories of supply of money
Unit 2: Inflation & unemployment
Meaning, types and theories of inflation, cost of inflation and the sacrifice ratio, measurement of inflation in India, policies to control inflation, meaning and types of unemployment, Okun's Law, the Phillips Curve, stagflation
Unit 3: Business cycles & macroeconomic policy
Meaning, types and phases of the business cycle, monetary, fiscal and income policy instruments, the multiplier — concept, features and leakages, the foreign trade multiplier
Unit 4: Macroeconomic framework of the Indian economy
Public finance, the tax system in India, financial administration and the Finance Commission