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Bangalore university 1st sem Study material MACROECONOMICS FOR BUSINESS DECISIONS

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Bangalore University is located in the Garden City of Bangalore aptly hailed as the  “I.T. Capital of India”, was established in July 1964 as an off shoot of the University of Mysore, primarily to include institutions of higher learning located in the metropolitan city of Bangalore and the districts of Bangalore, Kolar and Tumkur, which eventually became a separate university. Initially, the two premier colleges of the city, the Central College (CC) and the University Visvesvaraya College of Engineering (UVCE) formed the nucleus of Bangalore University.

Bangalore University has grown both in size and strength to include a large number of affiliated colleges, P.G. Centers with a rich diversity of programme options. In consonance with this expansion, in 1973, the University moved into a new campus named ‘Jnana Bharathi’ (JB) located on a sprawling 1100 acres of land and shifted many of its post graduate departments to this newly established campus. At present, the JB Campus houses the office of the Vice Chancellor, Registrar, Registrar (Evaluation), Finance Officer and a large number of post graduate departments, Directorates, Centres of higher learning, NSS Bhavan, Outdoor Stadium and other support services. The University Law College, started in 1948 and The College of Physical Education, started in 1959 are located in the JB Campus.


Masters of Commerce or MCom is a post graduate level course ideal for candidates who wish to make a career in banking financial services and insurance (BFSI) as well as accounting and commerce sectors. The 2-year course delves deeper into the functioning of the economy, capital, revenue, trade, taxes, etc. taught in BCom.

1. To familiarise students with key macro economic variables and their behaviour, and
enable them to critically evaluate different economies.
2. To enable students to integrate macroeconomic analysis into business decisions.
Module – 1
Introduction to economics, macro economics, and its interface with business and industry.
Resources and goals of an economic systems, free market and mixed economy.
National income and product concept, computation of national income and related aggregates,
problems in computation of national income.
Module – 2
Consumption, Savings, investment, marginal propensity to consume, marginal propensity to save,
multiplier, paradox of thrift, income and employment determination.
Module – 3
Money, monetary system, role of credit, financial inter-medias, level and structure of interest
rates – interest and macroeconomic equilibrium, central bank, monetary management and policy.
Fiscal policy – Objectives, tools, fiscal variables and the public debt, co-ordination of monetary
and fiscal policies.
Module – 4
Economic growth, factors determining economic growth, growth models, capital output ratio,
problems of growth.
Policies towards economic stability, business cycle, inflation and deflation, control measures,
conflicts between growth and stability.



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