Advanced Macro Economics is a comprehensive and well-structured textbook that offers a clear understanding of the core principles and applications of macroeconomics. Designed to make complex economic concepts accessible, the book bridges the gap between theory and real-world economic scenarios.
The text covers key areas such as national income, employment theories, macroeconomic equilibrium, consumption, saving, and investment functions. It provides a systematic exploration of classical and Keynesian approaches, helping readers develop a strong conceptual foundation and analytical perspective.
Written in a simple and engaging style, the book includes relevant examples and logical explanations that enhance understanding and encourage critical thinking. It enables readers to connect macroeconomic theories with current economic issues and policy decisions.
An ideal resource for students and learners, this book serves as a reliable guide for mastering macroeconomic concepts and developing the skills needed to analyze and interpret economic phenomena effectively.
1. Introduction to Macro Economics
1.1 Introduction to Macro Economics
1.2 Meaning and Definition of Macro Economics
1.3 Nature of Macro Economics
1.4 Scope of Macro Economics
1.5 Importance of Macro Economics
1.6 Limitations of Macro Economics
2. National Income and Circular Flow
2.1 Meaning and Definitions of National Income
2.2 Various Concepts of National Income
2.3 Measurement of National Income: Output, Income, and Expenditure Methods
2.3.1 National Income at Market Price and Factor Cost
2.3.2 Difficulties in the Calculation of National Income
2.4 Circular Flow of Income
2.4.1 Circular Flow of National Income in a Two-Sector Economy
2.4.2 Circular Flow of National Income in a Three-Sector Economy
2.4.3 Circular Flow of National Income in a Four-Sector Open Economy
3. Theories of Output and Employment
3.1 Classical Theory of Employment: J. B. Say’s Law of Market
3.2 Implications of classical theory
3.3 Criticism by Keynes on Classical Theory
4. Modern Keynesian Approach to Equilibrium of Economy
4.1 Keynesian Theory of Employment (Principle of effective demand, Full employment & unemployment equilibrium)
4.2 Inflationary & deflationary gap
4.3 Paradox of thrift
5. Consumption Function
5.1 Meaning of Consumption function
5.2 Importance of Consumption function
5.3 Determinants of consumption function
5.4 Concept of Consumption function
5.4.1 Average propensity to consume (APC)
5.4.2 Marginal propensity to Consume (MPC)
5.5 Keynesian Psychological law of consumption
6. Saving and Investment Function
6.1 Meaning and Importance of Saving Function
6.2 Importance of Saving Function
6.3 Average Propensity to Save (APS)
6.4 Marginal Propensity to Save
6.5 Concept of Capital and Investment
6.6 Gross and Net Investment
6.7 Autonomous and Induced Investment
6.8 Marginal Efficiency of Capital
6.9 Multiplier
This textbook is aligned with the revised syllabus as outlined by the National Education Policy 2020 (NEP 2020) for the Commerce and Management Faculty at K.B.C. North Maharashtra University, Jalgaon, effective from June 2025.
