Macro Economics

1. Introduction to Macro Economics
1.1 Origin of Macro Economics.
1.2 Principles of Macro Economics: Maximum Production, Responsible Consumption and Equal Distribution.
1.3 Macro-economic variables and concepts: Growth, Employment/Self Employment/Unemployment, Inflation Meaning, Concept of Wholesale Price.
1.4 Index and Consumer Price Index (WPI and CPI): Consumption, Savings and Investment, Foreign Trade (Export and Import).
1.5 Role of Macro-economists: Forecasting, Analysis, Research and Data Collection.

2. National Income
2.1 Concept of GDP, GNP, NDP, NNP, National income and Disposable income
2.2 Real and Nominal GDP/ GNP: GDP Deflator
2.3 Measurement of National Income. - Three methods (Value Added, Income and Expenditure)
2.4 Circular flow of National Income: Three sector model (including government & taxation), Four sector model (Export and Import)
2.5 Difficulties in Measurement of National Income

3. Keynesian Model of Income Determination
3.1 Introduction to Simple Keynesian Model
3.2 Consumption and Saving Function: APC and MPC, APS and MPS, Factors influencing consumption, Alternate theories of Consumption (Life Cycle, Permanent Income and Kuznets), Shifts in Aggregate spending and the Multiplier
3.3 Investment Demand (ID): Meaning and types of investment (Capital stock), Keynesian MEC/Rate of interest and ID
3.4 Aggregate Demand / Supply – Equilibrium

4. Business Cycle
4.1 Phases of Business Cycle
4.2 Features of Business/Trade Cycle
4.3 Theories of Business Cycle: Hawtrey’s Theory of Business Cycle, Low/under consumption theory of Keynes, Samuelson’s theory of Business Cycle, Hicks Theory of Business Cycle
4.4 Real Business Cycle (RBC)