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This course module is designed to provide the students with the knowledge of economic concepts at an aggregate level in general and its applicability to the Sri Lankan context.

Learning Outcome : aaaaaaaaaaaaaaaa
By the end of this course unit students should be able to:
  • describe the theories and concepts relating to key macroeconomic variables.
  • apply the principal determinants of income of an economy, growth of income and general price level.
  • evaluate the aggregate behavior of contemporary macroeconomic policies and practices.

Course Content : Introduction; Keynesian income expenditure model; Equilibrium Income Determination in IS-LM analysis; Theories in consumption; Savings, and Investment; Monetary and Fiscal policy; Inflation and unemployment; Rational expectation; Stabilization policy; Open economy macroeconomics.

Method of Teaching & Learning:

Lectures, Tutorial, and Assignments

Scheme of Evaluation:

End semester examination, Assignments and Presentations

The weights given to each component of the evaluation method is announced at the commencement of the module.

Recommended Readings: Eugene A. Diulio, (1998), Macroeconomics (Schaum’s Outline Sereis), 3rd Edition, McGraw Hill.

Dwivedi D.N., (2004), Macroeconomics: Theory and Policy, International Edition, McGraw Hill.

Rudiger Dornbuch, Stanley Fisher, (2006), Macroeconomics, (8th Ed) (International Edition), McGraw-Hill, Inc.

Central Bank Annual Report.

Recent Economic Development – Highlights