Supply Side of the Economy: Derivation of Aggregate Supply
“Full employment” and “Underemployment” equilibrium in terms of the AD-AS model and adjustment process.
Job loss and Natural Rate of Unemployment; Job search, Seasonal and Frictional unemployment.
Wage rigidity and structural unemployment: minimum wage, union and collective bargaining, efficiency wage.
Aggregate Supply Curve and Phillips Curve
Analysis of short run and long-run effects of shocks under Adaptive Expectation.
Expectation Augmented Phillips curve, short-run trade-off and long-run relation between inflation and unemployment.
Theories of Inflation
Budget Deficit and Inflation
Costs of inflation
Interest Rate Targeting or Money Supply Targeting
Selective instruments of monetary control, Growth rate of money supply and rate of inflation.
Public Debt and Deficit: Traditional View of Government Debt
Real Business Cycle Theory: Technology shock, Fiscal shock, and Propagation mechanism.
New Keynesian Macroeconomics:
Staggering of Wage and Price, Overlapping Wage Contract and co-ordination failure.
Mankiw N.G: Macroeconomics (Worth Publishers), 5th Edition.
Frisch, H: Theories of Inflation (Cambridge University Press)
Robert J. Gordon:Macroeconomics, Prentice-Hall India Limited, 2011.
Barro Robert: Macroeconomics
Richard T. Froyen, T. Richard: Macroeconomics: Theories and Policies,9th ed. (Prentice Hall), (2009)