Syllabus For The Subject MACRO ECONOMICS

UNIT - 01

DEFINITION - SCOPE - MICRO AND MACRO DISTINCTION - USEFULNESS OF MACRO

APPROACH - CIRCULAR FLOW OF ECONOMIC ACTIVITIES

UNIT - 02

NATIONAL INCOME - CONCEPTS - COMPONENTS - MEASUREMENT - PHYSICAL QUALITY

OF LIFE INDEX - PER CAPITA INCOME AND ITS LIMITATIONS AS AN INDEX OF WELFARE

UNIT - 03

CONCEPTS OF EMPLOYMENT - INVOLUNTARY UNEMPLOYMENT - FULL EMPLOYMENT

AND DISGUISED EMPLOYMENT

UNIT - 04

ELEMENTS OF CLASSICAL MODEL: BASIC FEATURES - SAY`S LAW OF MARKET -

CLASSICAL DICHOTOMY - WAGE - PRICE FLEXIBILITY AND EMPLOYMENT AND

EMPLOYMENT

UNIT - 05

CLASSICAL THEORY OF EMPLOYMENT - CLASSICAL MODEL WITHOUT SAVING AND

INVESTMENT - CLASSICAL MODEL SAVING AND INVESTMENT - KEYNES CRITICISM OF

CLASSICAL THEORY

UNIT - 06

SIMPLE KEYNESIAN THEORY OF INCOME DETERMINATION - THEORY OF EFFECTIVE

DEMAND - UNDER EMPLOYMENT EQUILIBRIUM

UNIT - 07

CONSUMPTION FUNCTION - ATTRIBUTES - SUBJECTIVE AND OBJECTIVE FACTORS

DETERMINING CONSUMPTION FUNCTION - PIGOU EFFECT

UNIT - 08

RELATIVE INCOME HYPOTHESIS - PERMANENT INCOME HYPOTHESIS

UNIT - 09

TYPES - AUTONOMOUS AND INDUCED INVESTMENT - MARGINAL EFFICIENCY OF

CAPITAL

UNIT - 10

LIQUIDITY PREFERENCE OF INTEREST AND LIQUIDITY TRAP

UNIT - 11

CONCEPTS OF KEYNESIAN MULTIPLIER - ASSUMPTIONS - WORKING AND

LIMITATIONS - DYNAMIC MULTIPLIER

UNIT - 12

BALANCED BUDGET MULTIPLIER - FOREIGN TRADE MULTIPLIER