BBS 2nd year Macroeconomics for Business Syllabus

We have the BBS 2nd year Macroeconomics for Business Syllabus. Macroeconomics for Business is one of the subjects of the BBS 2nd year.

BBS 2nd year Macroeconomics for Business Syllabus

Following are the BBS 2nd year Macroeconomics for Business Syllabus.

Course Objectives:

Macroeconomics for Business aims to enhance the understanding of macroeconomic principles and the Nepalese macroeconomic situation for bachelor’s level students. It will help to inculcate the skills incorporating different macroeconomic domains in the assessment of the nature of the business environment.

Course Description:

This course of macroeconomics makes students skilled to understand macroeconomic concepts, theories, and contemporary macroeconomic issues pertinent in Nepal. This course comprises an introduction to macroeconomics, national income accounting, the classical theory of employment, Keynesian macroeconomics, the IS-LM model, inflation, business cycles, monetary theory and policy, government finance and fiscal policy, the global economy, and contemporary issues with reference to Nepal.

Unit 1: INTRODUCTION TO MACROECONOMICS LH 6

Contents:

Macroeconomics: concepts, scope, uses, and limitations.
Macroeconomic concepts: stock and flow variables; equilibrium and disequilibrium.
static and dynamic equilibrium analysis.

Unit 2: NATIONAL INCOME ACCOUNTING LH 20

Contents:

Circular flow of income and expenditure in a two-sector, three-sector, and four-sector economy.
Different concepts of national income: GDP, NDP, GNP, and NNP at market price and factor cost, personal income (PI), disposable personal income (DI), and per capita income (PCI).
Real GDP, nominal GDP, and GDP deflator; Computation of national income: product method, income method, and expenditure method.
Difficulties in the measurement of national income. Numerical Exercise.

Unit 3: CLASSICAL THEORY OF EMPLOYMENT LH 6

Contents:

Unemployment: concept and types.
Say’s Law of Market: concept, assumptions, and implications.
Classical theory of employment: assumptions, components, and criticisms.

Unit 4: KEYNESIAN MACROECONOMICS LH 30

Contents

Principle of effective demand; Consumption function: concepts, psychological law of consumption, technical attributes, and determinants.
Saving function: concepts, technical attributes, and determinants.
Paradox of thrift; Investment function: concept and types of investment, marginal efficiency of capital, investment demand curve, and determinants of investment.
Income and output determination in the two-sector economy; Investment multiplier: concept, income generation process and leakages; Income and output determination in three-sector and four-sector economy.
Derivation of government expenditure multiplier, tax multiplier, and foreign trade multiplier. Numerical Exercise.

Unit 5: IS-LM Model of INCOME DETERMINATION LH 7

Contents

Derivation of the IS curve and the product market equilibrium.
Derivation of the LM curve and the money market equilibrium.
General equilibrium in the product market and the money market.
Shifts in IS and LM curves (change in monetary and fiscal policies) and effects on equilibrium. Numerical Exercise.

Unit 6: INFLATION AND BUSINESS CYCLES LH 18

Contents

Inflation: concepts and types; Measurement of inflation through consumer price index (CPI) and GDP deflator.
Demand-pull inflation and cost-push inflation.
Concept of core inflation; Effects of inflation; Anti-inflationary measures; Inflation and unemployment.
Phillips curve and stagflation; Deflation: concept and causes; Nature, causes, and effects of inflation in Nepal.
Business cycles: concepts, characteristics, and phases; and Measures to control business cycles.

Unit 7: MONETARY THEORY LH 16

Contents

Money supply: concepts and determinants.
Money market and capital market: concepts and functions; Structure of the financial market in Nepal.
Monetary Policy: concepts, types, objectives, and instruments.
Features of the current monetary policy of Nepal.

Unit 8: GOVERNMENT FINANCE LH 15

Contens

Government budget: Concepts and components.
Deficit financing: concept, objectives, and methods.
Sources of government revenue in Nepal, Government expenditure of Nepal.
Features of the current government budget of Nepal: Fiscal policy: concepts, types, instruments, and objectives.
Fiscal federalism: concepts, components, and Nepalese practice.

Unit 9: GLOBAL ECONOMY LH 17

Contents:

Global economy: concept and current trends.
Globalization: concepts, drivers, benefits, and defects; Regional integration and trading blocs: concepts and role.
Issues of Nepali foreign trade: Exchange rate: concept and types.
Determination of equilibrium exchange rate under fixed and flexible exchange rate systems.
Balance of payments: concept and BOP accounts; Foreign direct investment: concepts, benefits, defects, and current status of Nepal.
Foreign employment: benefits, defects, and current status of Nepal.

Unit 10: CONTEMPORARY MACROECONOMICS ISSUES IN NEPALESE PERSPECTIVES LH 15

Contents

Macroeconomic indicators of Nepal.
Privatization and liberalization: concepts, benefits, and defects; Economic growth and development: concepts and components.
Sources of economic growth: Poverty: concepts, types, causes, and remedies.
Economic inequality: concepts, causes and remedies.
Public-private partnership: concepts, importance, and Nepalese practice.
Financial inclusion: concepts, determinants, and current Nepalese status.

Hence, these are the BBS 2nd year Macroeconomics for Business Syllabus.

BBS 2nd year Macroeconomics for Business Syllabus

Unit 4: KEYNESIAN MACROECONOMICS LH 30

Unit 7: MONETARY THEORY LH 16

Unit 8: GOVERNMENT FINANCE LH 15

Suggested Readings: