This course is designed to introduce the student to the basic building blocks of macroeconomics. Using an open economy framework, the course develops an understanding of the constituents of the open economy. The student should be able to build on these constituents in the later years so as to be able to analyse macroeconomic policies

Module I: Concepts and Definitions 
Circular flow of Income in an Open Economy–GDP-GNP-NNP- GDP Deflator–Real and Nominal quantitates–GDP at purchasing power parity –Exchange rate as a price –GDP Growth: India’s experience –Trends in Growth Rate and Sectoral Composition of GDP- Sources of Data.
Module II:Consumption, Saving and Investment 
National Income Identity in an Open Economy- Keynesian Consumption Function- Investment Multiplier-Marginal Efficiency of Capital and Rate of Interest-Accelerator- Savings in India: Trends and Composition-Capital Formation in India: Trends and Composition- Sources of Data.
Module III: Government 
Public Goods and their Features- Merit Goods- Sources of Revenue: Direct and Indirect Tax- Impact, Shifting and Incidence of Tax- Sources of Non- Tax Revenue- Public Expenditure: Revenue and Capital Expenditure- Subsidies- Types of Deficit: Revenue, Budgetary, Fiscal and Primary-Concept of GST- Recent Trends- Sources of Data.
Module IV: External Sector
Structure of Balance of Payments-Types of Disequilibrium in BOP- Exchange Rate Determination- Concept of FOREX and its components-Sources of Data.