K J SOMAIYA COLLEGE OF ARTS AND COMMERCE

(AUTONOMOUS)
VIDYAVIHAR, MUMBAI-400077
(Affiliated to the University of Mumbai)

SYLLABUS

AND

SCHEME OF EXAMINATION

Program: SY BCOM
Minor Course: Business Economics III
SEM III
As per
CHOICE-BASED CREDIT AND GRADING
SYSTEM

(60 - 40 Marks Pattern)

(With effect from the Academic Year 2024-25)

K J Somaiya College of Arts and Commerce

(Autonomous), Affiliated to University of Mumbai
Vidyavihar (E), Mumbai-400077, India P: (91-22) 21022915
E: [Link]@[Link] E: [Link]
 1. Name of the Programme : B. Com
2. Paper No. : III
3. Course Title : Business Economics III
4. Course Code : BCECMN03-24
5. No of Credits : 4
6. No of Lectures : 60
7. No of Lectures per week : 4

Preamble
This course deals with macroeconomics or the functioning of an economy as a whole. It involves
theoretical, empirical as well as policy-related aspects. The theoretical aspect deals with various
macroeconomic concepts as well as various macroeconomic theories. It involves circular flow
of income, business cycle, aggregate demand, supply of money, demand for money, inflation,
theory of income determination, investment multiplier, principal of acceleration and
determination of income and interest rate through IS-LM model. Policy-related aspects of
macroeconomics focuses on objectives and instruments of monetary policy and fiscal policy.
This course designed for learners to understand macroeconomics and enables them to learn the
functioning of the economy in a systematic manner.

Objectives

This course is designed to present an overview of macroeconomic issues and introduces

preliminary models for the determination of output, employment, interest rates and inflation.
Monetary and fiscal policies are discussed to illustrate policy application of macroeconomic
theory.

Learning outcome -

After the successful completion of the course, learners will be able to;

CO1. Explain circular flow of income, business cycle and theory of income determination.
CO2. Understand supply of money, demand for money, theoretical frameworks of inflation
and case studies of hyperinflation
CO3. Articulate the monetary and fiscal policies in fulfilling the macroeconomic objectives of
stability, full employment and growth
CO4. Critically analyze the theoretical frameworks of determination of income and interest
Rate with the help of ISLM Model.

K J Somaiya College of Arts and Commerce

(Autonomous), Affiliated to University of Mumbai
Vidyavihar (E), Mumbai-400077, India P: (91-22) 21022915
E: [Link]@[Link] E: [Link]
 Module I: Theory of Income and Employment: (20 lectures)

Circular Flow of Income: Closed (Two and three-sector models) and Open Economy models,
Trade Cycles: Features and Phases, Concept of Aggregate Demand-Keynes Theory of Income
Determination, Theory of Investment Multiplier, Acceleration Principle.

Module II: Monetary Economics: (20 lectures)

Supply of Money: Constituents and Determinants of Money Supply- Money Multiplier and High
Power Money -Velocity of Circulation of money-RBI Measures of Money supply, Demand for
Money: Keynes’s Theory of Demand for Money- Inflation: Concept and Rate of inflation -
Demand-Pull and Cost-Push of Inflation-Causes, Effects and Measures to Control Inflation,
Philips Curve in Short Run, Hyper-Inflation: Zimbabwe and Venezuela (Case Study)

Module III: Integration of Product and Money Market Equilibrium: (20 lectures)

Monetary Policy: Objectives and Instruments- Fiscal Policy: Objectives and Instruments, Money
Market Equilibrium: The LM Curve; The Product Market Equilibrium: The IS Curve, The IS
and LM curves combined – Factors influencing Equilibrium income and the Interest Rate,
Monetary influence: Shift in the LM schedule, Real influences: Shift in the IS schedule
REFERENCES:

1. Abel Andrew B, Bernanke Ben S & Croushore Dean (2013) “Macroeconomics 8th
Edition”, Pearson Education
2. Blanchard Olivier & Johnson David (2017) “Macroeconomics 6th Edition”, Pearson
Education,
3. Bohm Alina (2019) “Venezuela: The Path to Hyperinflation” GRIN Verlag.
4. D’Souza Errol (2009) “Macroeconomics” Pearson Education.
5. Dornbusch Rudiger, Fischer Stanley and Startz Richard (2017) “Macroeconomics 11th
Edition”, McGraw Hill Education
6. Dwivedi D. N (2018) “Macroeconomics: Theory and policy 5th Edition” McGraw Hill
United States
7. Froyen Richard T. (2013) “Macroeconomics: Theory and Policy 10th Edition”, Pearson
Education India
8. Mankiw Gregory (2021) “Macroeconomics 11th Edition”, Worth Publishers

9. Hanke Steve H. & Krus Nicholas (2012), "World Hyperinflations” Cato Institute,
Working Paper. [Link]
K J Somaiya College of Arts and Commerce
(Autonomous), Affiliated to University of Mumbai
Vidyavihar (E), Mumbai-400077, India P: (91-22) 21022915
E: [Link]@[Link] E: [Link]
 Scheme of Examination
The performance of the learners shall be evaluated in two parts. The learner’s performance
shall be assessed by Internal Assessment with 40 marks in the first part and by conducting
the Semester End Examinations with 60 marks in the second part. The allocation of marks
for the Internal Assessment and Semester End Examinations are as shown below: -

(A) Internal Assessment: 40 Marks (40%)

Sr. No Evaluation type Marks

1 One Periodical class Test/Project and Active participation in routine 40

class instructional deliveries (case studies/ seminars//presentation)

(B) External Theory examination: 60 Marks (60%)

• Duration –2 Hours for each paper.

• There shall be Four questions each of 15 marks on each module.

• All questions shall be compulsory with internal choice within the questions.

• Questions may be subdivided into sub-questions a, b, c and the allocation of marks

shall depend on the weightage given to the topic.

• Fourth question shall be asked on short notes/objectives which will be the

combination of all modules.

Questions Modules Marks

Q1 Based on Module – 1 15

Q2 Based on Module – 2 15

Q3 Based on Module – 3 15

Q4 Based on all Modules (Short Notes/Objectives) 15

Total Marks 60

K J Somaiya College of Arts and Commerce

(Autonomous), Affiliated to University of Mumbai
Vidyavihar (E), Mumbai-400077, India P: (91-22) 21022915
E: [Link]@[Link] E: [Link]
 COMPOSITION OF SUBJECT BOARD -ECONOMICS

Head of Department Dr. Shubhangi B. Patil

Associate Prof & Head, Department of Economics
K.J Somaiya College of Arts & Commerce, Vidyavihar,
Mumbai 77
Faculty from the Department Dr. Mahendra Mishra
Dr. Sunil Chandanshive
Mrs. Deepali Toraskar
Dr. Flora Pandya
Ms Shraddha Shrivastav
Subject Expert (VC Nominee) Smt. Varsha Malwade
Associate Professor and Head,
Department of Economics,
Ramnarain Ruia College of Science &Arts,
Autonomous
Mumbai– 400019
Professional Experts (Nominated Dr. Ritesh Singhal
by Principal) Professor and Head, Department of Economics, Ismail
Yusuf College of Arts, Science and Commerce,400060

Dr. Parinaaz Mehta

Assistant Professor in Economics
Kirit P Mehta School of Law, Narsee Monjee Institute
of Management Studies
Mumbai – 400056

Industry Representative Mrs. Mitu Gandhi

Mutual Fund Distributor
Yash Investment
Yavatmal, Maharashtra 445001
Students Alumnus Mr. Gaurav Gotmare
Assistant Section Officer
Ministry of Housing and
Urban Affairs Govt of
India
Mr. Vinit A. Furia
Goods & Service tax practitioner
A P Furia & Co.
211, Jyoti Chambers, Ghatkopar (W)
Mumbai – 400086

K J Somaiya College of Arts and Commerce

(Autonomous), Affiliated to University of Mumbai
Vidyavihar (E), Mumbai-400077, India P: (91-22) 21022915
E: [Link]@[Link] E: [Link]