Macro Unit 1

c

  m




Unit-1 Q1. Define micro and macro economics, Distinguish between them, and explain the scope, importance and its limitations m  m m  m mm   mmm  m  m mm m  m  m m  m m  m m m  m m  m    m m m m m m  m   mm  mm m m m  m


m m m  m  mm  mm
 m  m  m mmm
 m m  mm mmm mm m m? !"mm m  mm#$%% m &m   m m m m m   

m '  m  m () m m m  m *m +, m mm   m  m -m Distinguish between micro and macro economics: m m m  m .m   m m m m  m   m m  m  m m  / mm m m mmmmm mm   /mm  mmm m  m'  0mmm mm m  m m m mmm 
mmm  m m m   m m m m  m   m m  m m m  m

m m m   / m mm
m 
mm m 
mm


m mm   m  mm0 m Micro-economics m mm   /m m' mm m m mm m mm m  mm  m1 m m m

/  m m m
 / m  m
m m  mm

 mm  m

Macro -economics m m mm m m' mmm.m  m m mm  mm m  mm
 m1 m m m mm

/  m m m  m m
m m  m m m  2 m m  m

 m

m Scope and importance of macro economics0m ? m() m m mm 
m mm mm mmm m  mm
mm  mm  m mm  m  m  m  m mm  m mm


m 0m

1|? m




c

  m

3m 3m 3m 3m 3m 3m
3m 3m 3m




  mmm  m 4    
m m m 
mm m m  m 4   
m  m 


mm   m  mmm   m  m  m   m  mm  mm ?   mm m m 5  mm   m  m

m 3m ormulation of economics policies0mm mmm  mmm m m m  m  m  m  m  
m m   m  m   m  m m  m m   mm mm m  m  m m 3m Understating micro economy0m m  m m   m m m m  m  m   m    
m m  /m 6m   /m m  /m m m   m m'  mmm mm   m m mm mm   mm

 mm  m  mm
 m  m m  /mm   m m
m  m /m m m 3m unctioning of an economy0mmmm  mm

mm m  mmm
mm m m mmm m m m m  m  m  m* 
mmm  m   mmm


m   m6m  mmm mmm  mm*m  m mm m mm mm m  m m' m  m 3m Understating and controlling economics fluctuation 0m m  m m m   m  mm   m  m mm mmm mm  mm m mmm m m *mm


mm


m 
m  mmmm m 3m Study of economic development0m m m  mm   m mm  mmm m m mm
m m mmm  mm  mm    m  mm m mm  m mmm mm   m 3m |nflation and deflation0m   /m   m m m m   m m  m  m    mmmm m m  m   m m m  mm 
mmm  m m  m   /m   m m m  *m   m m m  m  *m m  m mm m  m   m
3m Study of national income0mmmm mm  /mm m 
m  mm   m m  m m   m m  m  m m 6m  m m   m m m mm mmm*mm mm   m  mmmm
mm m mm  mm

mm mm    m

r|? m




c

  m




3m ?erformance of an economy0m  /m mmm    m  m  m mm m    m  m  mm   mm m mm m  m  m m m m mm mm  m  m  m mm 3m Êature of material welfare:m   m  mmm mm  m  m2mmm    m   m m m  m m   m m   
m m  m   m m m   m m  m m mm mm m mmmm *mm mm  m m Limitations of macro economics:   /m  m m  m  m m  
m m   m   m  m m m m   m

  m m m  m  m m  m m   m  m m m  m m m m   mm  m  mm  
m 
 m


mm m  m 0 m 3m  m
 2 m 3m 7 mm  
mm


m 3m 7 m a)m alse generalization: m


m   m mm mm  m  m mm
 2 m  m

m 
m  m m   m m   m  m
 m m   m m
 2 mm mm 
 m

  m  m  
 m 3m Difficulties in measuring the aggregatesm0m   m  m  m m m  m m m m   
m  m & m m  m m m 
 m


 m m  mm mm mm 
m m  m m 

mmm mm  m c)m Diversities: m


m  m m m 
m   m  m   m m m  m

m m  m *m m  m  m m  m  m m  m   m  m '  m m m
 m  m  m  m m m

m m  m m m  m  m m m  m  m    m m mm m mm  mm m ‘onclusion:  m m m m m m  m  m   m m m   m m  m m  m m   m 
 m  m  m m  m    m m   m1m m m m m

^|? m




c

  m




r. What do you mean by circular flow of income & expenditure ? Explain it with Help of the two sector, three sector & four sector model? m !  m  m  m m   m m m  m  m
 m m m  m m m m   m  m m m m m   m m m m m ' m  m m m  mm m  m
 m m mm m  mm  m *mm m!  m  mm m m mm mmmmm  m  m m mm mm   m m  m  mmm  m  mm 6m  m ' m m   

m  m m 55?8559855:m m m m  m  m m   m  m m) mm"m  m m 
mm  m1 mmm m m   m  mmm .m '  m  mm m mm  m  mm  mm .m '  m m m  m  m m m m   m  m m 
m   m m m m  m m m   m m .m '  m m m 0 /m  
m m m  ' m ,m m '  m' m m m 6m m' m  m mmm.m'  mm m  m mmm  m0/m ¦m m m  mm ¦m  m m  m ¦m  m m  m Vwo sector model:mmm m  mm mm mm mmm m m  m  mmm  mm m

" m 0/m " m mm

mm  mm   m mm  mm  m.m  mm  m mm m


mm mmmm  m &m 0/m &m  m m m    m m   m   m  m 

m m m m  m m m  m m m m m

m

m m  m  m  m m m m   m m m m  m m  m m  m   mm  m *m mm m  m 6m m' mmm mmm


m  m ü|? m




c

  m




m mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 


m  m

mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm ?  m  mm



mmmmmmmm& m   mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m   m mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm    m  m mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m?  mm m m m 
 m  m  m  m   m m  m   m m
 m  m  m   m m m  mm  m  m m   m  m m m m  m mmm    m   m  m   m   m  m   m  m m
m m   m  m m

   m m m   m   m m   m m m
m  m m  m   m  m m m  m   m m m   m m & m   m  m m m m  m m  m   m m  m m m   m m m m   m  m m m  m m   m
m  m
m m   m  m m  m   mm& m  m
m m   m m mm  mm  m m m m  mm m m

  flo
ith s in s nd in st  nt dd d:-

‘i ul

   m m  m  m m   m  m m  m m  m m   
m m   m m  m m m m 
m  
m m m 
m m   m m m m m  m m m m m mmm m 
mm m m m m m m m mmmmmmmmmmmmmmmmmmm m

o|? m




c

  m




mmmmmmm  mmmmmmmmmmmmmmmmmmmmmmmmm   m  mmmmmmmmmmmmmmmmmmmmmmm

 
m

mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm  m  m mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm ?  m  mm mmmmm& m  mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m  m mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm    m  m mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m?  mm m

m

mmmmmm m mm m  
mm m mm  m m  
m m  m m m   m  m& m  m  m m   m m m  m  m m  
m m
m m   m   m  m m    m  m  m m    m  m  mm   mm mm m    m m  m  mm  
mmmmmmmm  m  mmmmmmmm  mm m m   m m m  m m m   m  m   m m m m m m m m m m m   m   m m m m m m m m m   m  mm

 
m m m m    m  m

m  m  m m m   m   mm m /m  m m   m  mm   
m& m mm m   m m m  m   
m m m   m   m m m  m m  m  m m   mm m m  m  m

h  sto  odl :-

m  m   m m  m m  m   m   m m m  m m m/m m   m  m  m.m! m  m





  

‘i ul flo
of hous hold nd o t s to :m m 
m m  m  mm  mm m m  mm m mm  m m m ! m   m m  m m m   m m .m  
m m m m/m m .m ! m   m  m m m  m m   m m m .m  m m  m  m m m   m m  m m  m  
m  m m   m m & m m ! m   m m   m m m m m  m  m m m mmm
m mm  m  m m  m m m m  m m mm m  mm

M|? m




c

  m




  mm m m  m.m! m  m /mm m mm m m m m m   m m m! m m 
m m m   m m! m   m m m    m m
m m m m  m m  m   m m
m  m m  m  m  m m m m  m m
m  m  m m m  m



m! m m  m m 
  m /m mm  m  m m m 
m m m  mm m m m m m.m  
m m mm  m"m m m  m m m m m mm m m m m  m m mm m m m m m  m   m.m  mm! m  m m  
m  m   
m   m  m m  m   m m  
m   m m m m  m  m m m  mm mm  m m  mmm m.m  m  m m    m





m m m m mmm m 
mm m m mm!  mmmmmmmmmmmmmmmmmmmmmmmmm!  mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mm?  mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm   mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm  mmmmmmmmmmmmmmmmmmmmmmm m mmmmmmmmmmmmmmmmm   mmmmmmmmmmm  m  mmmmmmmmmmmmmm  
mmmmmmmmmmmmmmm m mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmm m m m m m m m m mm  m mm mm mm m m  m m
m m m ! m m ! m  m   m m  m  m   m
m  m  m m m    m m   m mm m m m! m  mm
m m  m m  m m

m  mmm m m m m 
m



m ! m   m m m  m m m m ! m  m  m   m   m m m   m  m m m m m! m  m m mm! m  m m  m m  
m m

m  m  m m  mm mm m m mm  
mm m  m m m ë|? m




c

  m




m  'm ' m ,m   m m ,m 

m  m m 
m   m m m  m m ,m

 mm m m.m m mmm  m *mm m  m m  m  m mmm  m mmm.m'  0 /mmmm mmm   m m
m m   /m mmm m& mmm  m *m m  m m 

m   m  m m  m m  m  m m   m m  *
m  m .m m   mmm
mmm m  mm mm 1  mmm m m mm  mmm' mm  mm  *
m  m m mm  mm 
mm m mm,mm m  m  mm  m.m  mm m.m' mm mm   m m m
 
mm m mm m  mm 
m mm1  mm 
m .mmmm m 

mmm  m mmm.m'  mm m m  mm m  m  mm m mmmm m  m mmm .m'  m m m  m

 mm  mm 
m6mmmm mm m  m m *mm' mm  mm m m m m mmmmm
 mm  mmmm m mm  mmm m m Q.^ What is national income? Explain its various method of measuring national income and its difficulties ? |ntroduction:-m!mm  mmm m m  m mmm)  m m m   .,

m  mm  mmm m m  mmm m m m  m   m m m m m m m m  m m  m  m m m )  m  m m   m m m   m m  m m  m  *m m m  m   m m 1 m m  m  mmm  mm  m m  m m    m  mm *mm  m  m  m) m  m m m  m  mmmm
2 m 1m  m1m m m
m Definition:-m7 mm m  mmm  m mmmmmm m

Õm ccording to Marshal, +m  m  m  mm m m 
mmm  m  m   m 

m m   m m


m m  m    m  m    m   
m m m

m * m  mmm mm mm 
mm m m  mmmmm mm  mm  m mmm m mm  m  m+mmmm

w|? m




c

  m




Õm ccording to ?igue , ͞m   m  m m  m  m m m m m m m   m   
m m  m m   m  m   m m  m m   m m  m+m Õm ccording to isher, ͞ m   m  m  m m m m  m m  m  m   m m m m   mm m   m
 - m Õm ccording to Keynes, ͞m 5  m m  m

m  m
 m  m  m m m    m  
m m
m  mmmmmm m  m   - m  m m m m m m m  m   m m  m m m m  m m m  m m m m ,m m ' m m m   m m  m   m m   m m mm'  mm  m  mm  mm  m'  m m 598!;;,;<=/3;</?3m 598  mmmmmm!8m  mmmm8mmmm,m8m
mm=8m' mm 8 m8m mm ?8 mm Êational product :-5  m   m  m m m  m
 m  m  m m m    m  
m m
m  m m mm*m m  m  mm  mm m  m m m  *m

m m m m m  mmm   mmm

m
mm  m  m m Êational |ncome :-  mm m

mmm  m m m  mm  m  
m m
m  mmmmm mm
m m m m m mÊational Expenditure:- 5  m'  m  m m mm '  mm m m m
 m  m m m m  m 
mmm m m m mm m 

mm m mmm m' mmm


m  mmmmm m ÊÊ?ÊÊÊÊE 55?85m5  m  mm5598m5m5  mmm55:85m5  m:'   m Methods of measuring mÊational |ncome:m mm  mmmm m  mmm     mm m


m

mm mm m


m mm

m m m m m m G|? m

?roduct Methodm |ncome Methodm Expenditure Method m Social ccounting Methodm


c

  m

m




‘ombined Methodm

?roduct Method:?  m  m  m *m m   m  m  m m m  m m  m m m  *m mm

m
 m  m m   mm m m  
m m
m  mmmmm  m m  m

m m  m
 m  m  m  m   m  m m  m  m  m  m  m m  m m  m
m m m m   m  m  *m  m  m   m mm |ncome Method :m mmm
m;m ;m m;m m m Expenditure Method ::'  m m m

mm'm  
m m
m  mmmm4  mm mm m  mm'  mm
m mm,m
 m  m m  mm   m m  m   m m  m  m m   
m   m m
m m m  m

 m m m 1  m m   m m m m m  m  m m m m m m  m '  m Social ccounting Method :m m m  m m m  m  m   m  m  m m m  
m m m  m 
m m m mm  m m  mm  m
m?   m  m  m mm ‘ombined Method :mmm m m  m 

 m m   mm  m 
m m   m  m : m  m mmm  *mm m m  *m   mm m' m m  m m 
m  mmm  mm mm mm  m   m m  m  
m mm  mm m m mm#$>@ />$m m  mmm Difficulties / ?roblems of measurement of Êational |ncome :  m mm  m  mm  m mm  mm  mmmm m0 /m

Õm Difficulty in defining nation :m m m   m m m +m 5 -m m   m m ,

m m  m  m m m 

 m  m  m m m m  m m m  m m m m m  m '  m m mmmm mm m' m mm  m Õm |t only take into monetary forms:10 | ? m




c

  m




5  m m m  m   m m  m  m m m  m
 m  m  m m m   m m   m m  m m  m  m '  m 0/m   m  m m  
mm Õm Vhere is a difficulty in double counting : -m 7 m 
m  m m m m
 m .m  m m   m 
m m 

m m m m  m 
m m m   
m   m m m m m  m  *m m  m m  m  m  m   m m 

m m   m m m  m m   m  m m  m
 m  m  m

m *mm m Õm Difficulty in including transfer payment:-m   m  m  m m  m m m ,m m m
 m 2m m  m m m  m

 mmmm   m  mm mm m    m Õm ?roblem in to calculate depreciation : -m 7  m  m  m  m  m 
m 7  m 
m m  m m  m   m m m 6m m  m m   m
 m m  

m  m m  m m  
m .Ê.? ʹDeprecation Ê.Ê.? Õm Money is not an measuring rod :m   m m   m m m  m m  m m   m  m m  m   m mmm*m m  m  m mm m m m  mAm mmm  m m   m m m   m m m m  m  m  m  m   m m   m&m mm  m m  mmmm mm m  m Õm |n under developed & developing countries most of the sector are unorganized :-m m    m .m  
m  m m m m  m m 
2 mm  m mmm m  m m mmm   m Êon availability of Data:-m  1 m  m 

m   m  m m  m m m    m m m  
m  m     m  m m m     m  m  
m  m m  m m m  m  m m Õm |L-Literacy:-m m  
m  m     m  m m m m  m m  /  m  m    m m m  m m mm  m  m  m  m ‘onclusion: m m m m m m  m   m m  m  m m   m  m m   m  m  m m   m m  m m *m  m  m m  m m   m  
m   m   m m m  m  m
m m  m ,7?m m m @Bm m m m  m CBm m m  m m #$BC/B$m ,

m m m   m m   m  m m  
m m  m m  m
2 m  m  m  m  m m 11 | ? m




c

  m




Unit -r Q.1 Discuss the basic assumptions of classical Economics? . |ntroduction: -mm  mmm m

m*m mmm  mm mm    m m  m
 m m
 m m m m m m :
m m  m 7  m  m m & m   m m ) m  m  m m   m  m   'm   m m m m   m m 7  m  Dm  m  m m m   m  m m ( m 

m  m ?
mm m  mm  mm m


m   m m m 
m  mmm  m 
m mm

m  m 


m mmmm m  m mm  mm mmm  m mm 0/m m m  m  m m  m m m ' m 'm

mm

m   m 

 mm  m ?  mmE 2m  m  m   mm mm mm DmE m  mm m 6
mm?  m  m m E
m m:1  m m ?  m:1  m

ssumption of ull Employment:& mm m

m  m m 2
mm  m  mm mm  mmmm   m m m   m  m  m  m  m m 

m   m  m m m 

m   m m m   m  m  
m m m +m  m m m  m 

m   m m m   m  m m  m m   m  m 

m   -m  
m m m+ mm  m  - m llocation Of Resources : !  m  m  m  m  m m m  m 
 m 

m

 m m  m m m  m  m 
m m m m  m  m m mmm  mmm

 mm

 m m m m

 m m m
m 1  m m  m  m m  m m   mm  mmm mmm

m*m mm mm   m  m  m   mm mmm  mm

1r | ? m




c

  m




?hilosophy Of Laissez aire :!  m m
 m mmm  m  mm  mm m m m m m mm m  mm m m mmm   mmmm  m!  m  m m 2m  m  m m1 mm  m  mm m mm m


mm m m
 m  m m  m  m m  m m  m   m  m m m  m '
m   mmm m m m mmm mm

 m m  mm  mm  m |mportance Of Rate Of |nterest : m m  m m m  m   m  m m m   m  m m m    m m m 1  
m  mm 
m  mm& mm  
m 1  mmm mm Say͛s Law: m m mm  mmm Dm mm *mm Dm mm *mm m mmm  m m Dm mm *m m m m  mmm   mm m  m  m  
m m (& m  m  m m
 m  m   m  m
 m   mm m m m 'm m  m m   m& m   mm  m  m    mm  

m' 
 m m m m mmm
 mm m m  *mmm m m m   m m m  m m  m  m m  m
 m  m   m  m   m Role Of Money:m   m  m m  m m  m m  m  m  m  m  *m m m  m m m  mm' 
m  m
 mm m  mmm m m m m m  m  m m m  m  
m  m  m m  m m  m   m 
 m m    m  m mm m 
m  m Wage ‘ut ?olicy0/m !  mmm  m  m m  m  m mm  m  m m
m
m m m m  m m  m  m  m m m  m 'm m  m  *m !  m m   m m  mm   m mm
m mmm * m  m  Fm   m 
m m 

m   m   m m m  m  m m    m  m !?
mmm m m mmm  mmm  
 m

1^ | ? m




c

  m




utomatic djustment :mm 
mm  mm mm  m mmm mm   mmm  mmm  m m  m '
m m 

m   m  m  m   m m m   m m m m  m m  m  m   m m  m '
m  m  m m  m   m <

m  m 3m *m mmm  m!  mm  m m ' m m
m m  mmm
m 
mm 
m m  m  m Long term Equilibrium :m  m   m m m   m m m m 
m  m  m  m  
m   m m m 
m m  m m 
m m  m  

m   m m m   m m  m 1  m  mm 
m m1  m   m ?artial Equilibrium:!  m1  mm  m1  m  mm m
 m1  mm m  m
 2 m   mm m m m m  m&mmmmm m m m  m m'  0m/m?
Dm 
m m m  m    m m m   m  m  m   m m m m m    m m  m m m Saving0/ 
mmm 
mm
 m  m  m m  m m
m m 
m m m  m  m m  m  m mmmm   m

Õm Keynes͛s reaction on classical assumption or Keynes attack on classical s :-) m  mm
m  m m m m   m m  m  m   m   m ) m  2 m  m  m  m m m   mm  
m m) m m   m  mm m   m m


 m m m  m m m m &m m m m 
 m   mmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 


m mmmm  m  mm   m mm m0/ m 

m  mm m m  mm m mm 
mm  m m  mmm m  m m  mm mmm m1  m m m

G m G m G m Gm Gm

 m m  mmm   m 6
mmmm m  m m m E
m m  mmm m  m mm  m m mm m
 m1  mm 
mmm mmmm mm  mm m m m m

1ü | ? m




c

  m




Qr. Supply creates its own demand comments this statement? Or ‘ritically examine the say͛s law markets and how Keynes critics it? Or What is say͛s law of market? Does it stand its invalidity? |ntroduction: Dm mm *mmm mmm  m mm  m(& m m

 m#$ m m  mm   mmm 
mm m mmm   m mm Dm mm  *m m m  m m  Dm m m   m m   m  *m  m
 m m   m m m  m   m mm m m m  m m *m m m  mmm

m'mmm m m5
mm m   mmm   mmm  m mm mm   m m m  
 m  m m m m    m m m   m  m  m
 m m    m  m  m
 m: m
 m 
mmm *mm m   m mm m
  m m
 m mm *mm   mm m

m *mm *m m  m  mm mm ' 
mm mm m  mmm   m   m m  m m m  
m
 m  m m   m  m m m m m  m  m  mm
 m m  m m  m mm  m

m  

m    m  m m  m m  m   m m m   m &m  m m 
m   m  m m    m Vhis concept strongly supported by the J.S. M|LL, D |D R|‘RDO, and . ‘. ?|OU. ssumptions of say͛s law of market: 


m mmmmm  m mm Dm mm *0 m

âm âm âm âm âm âm âm âm âm 1o | ? m

? mm  m  m 6 m'mm *m 5m m m  '  mm m  m *m m E
m  mm 5m 
m ! Dm 
 m


c

  m




Explanation of the law: Dm mm *m mm'  mm m  m mm 0 m

âm âm âm # m

6m mm 
m  mm ñ  m mm m ?
Dm m With help of saving & investment:m m  Dm m m  *m  m m '  m m  m m  
m  m m 1  m m  m m  m 1  m m m  m 

m  

m 1 2 m  m m m  Hm m m m  m  m m m  m  m  
m 
 m m m m  m 
 m m  
m .m  m m m m  m  m m  
m m m  m  m m m m  m 
 m m   m  m m  m  m /  m J.B. S explained the above statement in following figure:

m m m 
 m m =/ 'm m    m  
m  m m  m m 9/ 'm m m  mmmmm m  m mmm 
m m 
m mmm  
m m m m m m m  m   m  
m m   m  m m m  m   mm 
m m  m mm 
m m m 
m  m m m  m   m m m m  m   m m  m  m m m m   
mm mmm m  m 
m m m  
mm  mmmmmmm m.mm mm m m m mmmm1  mmm m
 mm:mmmmm1   m mmm mm  m  mmm mmm m

mmmmm DDm m  m m 1  m m m m m :m m : Dm m m m   m 1  m m  mmmm  mmm mm m m   mmmm Dm m m m  m   m m m 1  m m 

m
m m  *m m m  
 m1  mm m mmm m
mm m: DDmmm 
 m

1M | ? m




c

  m




mm m m m  m m
m m mm mm m mm  m mm  mm 
m  mm1  . r.m Quantity theory of money: m   mm Dm mm *mm m m m  mmmñmñm m  m m  mm mmmm mm  m G8m?m m8m mm m Gm8m  m ?8m m  m 8m  m m m1 m

m mm m m m<G3m1 mm m mmm
m m 

m m 
 

m 5m mm mmñmm mm


m 
 m

m m  m m 
 m  m m m  m  m  m m 
 m &m  m m  m
m  m m  mm
 mm m  mm *mm =/ 'm  mmm *mm9/ 'mGmmm m m mmm  
 m   mmm mm1 mm G8?m mm

m mmm m,mmm  mñm m mm mm m

 mm?m?mmmmñm mm mmmmGm  m mmñm  mGmm#G#mmm m  m m  mm?mm?#m,mm m mmmmñmmm m mmm m  mm'  m    mmm mmm 1  mm mm??#m1 mm# m mm
m&m  mm m  mm mmm mñmGm  mm m mmñmm m m m  m m  m 
m m m m
m  m 
m6A?mm m  m
m

mmm m  
mm< 3mmm
mmm m  mm?#m m
mm6m 1ë | ? m




c

  m




6m  m  m m m ?#m m  m 
m m m m 6#m m 
m  m  m m 6#8?#mmmmm

m  m  m
m  m6Am ^.m ?|OU͛S ERS|OÊ: mmmmmmmmmm!  m  m m   m < Dm m m  *3m  m m  m  m m m   mm
mm   m Dm mm mm  m *mmm?
m  m m m m   m m  m  m m m  

m  m m   m m 

m   mmm  m *m mmmmmmmmm m m   m m m m 
m 
  m  m  >m  m m m m   m m m  m   m m m m   m m m 
2 m m  m m  m m  mm m 
m m m

m  m m *m mmm m  m 
m m  m   m  m m m  m m  m m   m m m m   m m  m 

m m m   m  m   m  m m m  m  

m581 Ammm  m 58mm mm * m    m ñ8m mmm  m 98  mm 68 m
m mmmmmmmmmmm 5m  m m    m  m m  m m 
m m m * m m 

m   m m m

 mm m
m6m m' mmm mmm


m
  m

mmm
mm77mmm   m m  m  m mmm m m  mm m m  m m  m  m m m m I:Dm I:Dm m m m m 

m   m m Am  m 
m 5m   m m 

 m m  m m  m   m m m  m 
m m m Am m A #m m   m   m m 5m m 5m  m  m m m   m  m m    m m m m  m & m m J77m m m  m m m    m  m m 
m

m  m  

m  m m  m mm  m

1w | ? m




c

  m




mmmm m 
m &m ?Em m 
 m    m  m  m m m  m  
m m   m m
 mm
m  m

mmm  mmm  mmm?
Dm m m?Emm
mmm mm

m
m m
mmm?Emm mmm mm

m
m

m
mmmmm?Em  mAm mm m m mmm*m m 

m  m |M?L|‘V|OÊ O S͛S LW: mmmmmmmmmmmmm 


m mm  mm Dm mm mm âm  m mm âm m
 m m  m m âm  m   mm   m  m m âm  ' m mm m  m
m mm âm  m m m mm âm m
 m  m m âm   mm m  m mm m âm  m m ‘R|V|‘|SMS: m m  m m #$K$m m  m  m  m  m   m m 
m m  m  Dm m  m 

 m m 1m m #$%Lm () m  m m m m m m  m m  m m m  Dm m m  *m  m m    m m m  *
 m 7"m  m  m m 2 m 
m  2 mm Dm mm *mm  m mm m  m  m m Dm mm *mm mm 2 m m(m) mmm 


m
 0m âm ?  mm  mmm   m âm ?  mm
 m m  m  m   m âm 

 mm

m âm ?  
 m   m âm 6
mmmmm  m  m âm   mm m mm
  m âm 4  m m âm 4    m ‘onclusion:  mm mmmm  m mm  m  m m m mm  mm m m  m m mm m mm 
m mmm  m m m  m m  m m m  m  m  
m m m m   m m  m m  m  m   m mm  mm m m *mmm
 m *m  mm m * m

1G | ? m




c

  m




Unit-^ Q1. ‘ompare and context between the classical and Keynes theory & explain which is superior and why? Or |s Keynes͛s revolutionary or evolutionary? ‘omment this statement? Or ‘ompare & context between classical theory & Keynesian theory of income & employment? nd how Keynes proves that classical theory is outdated? |ntroduction: m m  m m m m #$%Cm  m m m   m  m  m m m m m  m  m m m 
m m m   m m ) Dm
 m  m m   m  m  m  m m #$%Lm ) m  * m m   m  m  m m    m m  m m   m m m
 m  m m #$K$/%Cm  m  2 m m  m m m m m   m  mm mm
 m m m mm m   m  m  m m   m m
 m  m  m m KB m  m m   m  m  m m m  m  mmm m  m)  m mm

m m mmmmm  
 mmm  m   mm mm 
m  m
 m m  m m  m m
mm 
 m m

m  m

mm  mmm  m m  m  mm  mm m *m  m 
m mm)  m mm

mm  mmm m   m m

m mm  m m 5m mm m mm  mm  m 
m  m)  m
m 0 m

âm âm âm âm âm âm âm âm âm âm

r0 | ? m

Gmm

/  m Gmm m  m   m  mm m Gmm
mm Gmm 
m Gmmm  m Gmm mm m Gmmm Gmm  m Gmm
m m




c

  m




iew on full-employment:m m   m   m m m 'm m 

m   m m m  m  m mm m  m

/  m m 
 m m   m mm  m  m m
mm m m m m mm   m m m  m   m ) m    m m 'm m 

/  m m m  m m m  m m m m  mm mm mm   m iew on supply and demand: m  m  m m  mmm Dm mm *m.m m  
m  m m m  m mm m  m)  m mm  mmm   m m m 
mmm   m  mmm mmm *
 m ) m  mm  m m  mm  mm m mmm   . Role of state0m m   m m  m   m m m 2m   m   m m m  m 
m m mmm
m  m mm m  m) m 
m  mmm m mmm   m iew on wage ʹ0mm mm  mm   m  m
m mmm mm m  m m m   mmm m  m) m 
m  mm
m   m mm mm  m m

m m  m  mmmm 

mmm m  m 

mmm mm |EW OÊ S |Ê mmmmmmmmmmm m  m 2 mm  mm 
m mmm
m 
mmmm m  
m mm  
m  mm 

mmm m  m   mm m m  m ) m   m  m  
m  m m   m  m  m  m m m m  m   m m


m  
m  m m m  m m


m m m  m    m  m m   m  m
 m  m m  mm m  mm  mmm  mm  mm m mm |EW OÊ BUS|ÊESS ‘‘LE ÊD BUS|ÊESS LU‘VVUV|OÊ: mm m 

m  mm m m mm m mm mmmmmmmmmmmmmm m m  m   m ) m 
 m  m  m  m  m  m m m  
m m  mmm  mm m mm 
 mm mm m m m  m m m m  m
m m mm mm  m |EW OÊ E‘OÊOM|‘S : m  mm m m mm  mm  mm  mm   m Fm    m   m m m m   m )  m  m  m m   m r1 | ? m




c

  m




  m m m   m m  m m


m m


m  m


m   m


m  m m m m  *
 m  m " m  * m  m m
 m  m  m   m m  *m m m *m m m m  m  m  m m  m  m |EW OÊ ‘?|VL|SMm0m mmmmmm!  m   m  
m 2m   m m m  m   m ) m   m m   mm m mm |EW OÊ BUDEV SSVEM: mmmmm  mm 
m  mmm  m 
m  mm mm  m m m  m  mmm m  m) m  mm  mm m 
m  
m  m  m   m 
m  
m  m  m  m  m m  m  m  m )  m mm 

m  m m m mmm  m m ‘OʑLUS|OÊ ÊD ‘R|V|‘|SM: mmmmmmmmmmmmmm  mm m mm m  m mm
 m mmm  m mm   mmm m
m  m  m  mm m
m   m  m m   m
mm  mm m m  mm  mm m  m  m)  m  mmmm  m mm mmm *m  mm  mm 2 m )  m m m


m
 mm REVE DEMÊD0m m)  mm7m m  m  mmm
m m  m mm  m  m   
mmm *m  mm m mm m
mm

m
m m


m mm EE‘V| E DEMÊD: :m  m  2 m ) m   m m m   m  m m  m   m  m  *
mm


m mmm  m m m 
m m  m m  m mm   m  mm mm   mm ‘OÊSUM?V|OÊ UʑV|OÊ:m 5m m m ) m m m m m m  *
m  m m m  m m m  m m m  m m m m  m  m 

m m m 

m m  m m m  m m m  m m  m m m m rr | ? m




c

  m




m m m   m m  
m   m  m m m   m 

m 
  m  mm) m |nvestment function: ) m m mm 2 m m  
mm m  mm m  m m m m  m 
m m  m m  m  m    m  m   
m m 

 mm mm m  m 
 m mm   mm  mm  m m m m m  m m 

m 
  m m  m m   m *m  m m Rate of interest: m )  m  m m  m m   m  m m 

m  2 m  m m  )  mm<  m3m m m  
m mm m"m m  *mm mm mmm   m  mm
mm    mm  m   m m  m m 
 m m  m  m  m m 1m m m m m m  mm   mm *
m mm m  m m m  m mm m m m
m m m   S |Ê ÊD |Ê ESVMEÊV: ) m  mm m m m  mm  
m m mmm m  mmm mm  
mm m
 m  mm  mm  mm 
m  mmm m  m 
 WES: m )  m   m   m 1  m m   m m 
m 
  m m m 

 m    m m  m 
m m  m m  m 
m 

m  m  m m m   m m &mm  mmmm m  m mm  m m SHORV RUÊ E‘OÊOM|‘S : ) m  
m   m m m  / m m m m m  / m

m m m   m 

m m&mmm m m  
m  m ‘LOSED E‘OÊOM: m)  m mm  mmm mm  m  mm'  mm m m  
m  m m m  m m   m  m m &m m   m 

m

m m

m  m 

m m m  m  m m m  *
 m )  m  m m  2 m mm  m

r^ | ? m




c

  m




?ERE‘V ‘OM?EV|OÊ  m *mmm)  m mm  mmm  mmmm  m mm  m mm EÊERL VHEOR: ) m    m m  m m m  m  m m 

m Dm m m
 m  m m m  m  mmm    m m  m  m  mm m  m m   m   ?ROBLEM O UÊEM?LOMEÊV: ) m  m   m m    m   m  m 
m m  m  m m   m mm< 
 m   m  m 
 3m  m mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m m m m m m m m m m m m

rü | ? m




c

  m Unit-^




Quest explain the relation between saving and investment theory? Or Saving and investment are always equal in equilibrium. Explain this statement? Or critically examine the ex-ante and ex-post approach to the interrelation of saving and investment?  |ntroduction m  m  m) m  
m  mm m m m  m mm  m m  

Dm m  m   m mm m  m m mmm 
m  mm 1  m m ::!G:m 7:57m m m m   m  m m
 m 1  m  m 
m  mmm mmm

mmm)  m mm  mm  m mm  m mm  mmm1  mm 
m  mmEDm mmm m1 mm m  m Saving function 6m *m m  
mm m 'm mm  m'  mM 89/!N) m


m mm m  m  m m  m   m  m  m m m  m  
m m m m   mm m  mmmmmm m  m m mm  m:' / m  
m  m   m  m ' m  
m m m  m  m :'/m m   m  
m   m  m m m   m  m m  
m m   m m m  m m  
m  m m  m  
m &m m m  
m m  
m  m 
m  m  m  m  
m  m m mm'/ 'm Ê

   
        mm mmm m m mm m
 m mmm 
m mmm mmm m mmm  m  
m m  mm m m m m mm&:!mm mm 
mmm

m m m m m    m  m m m m  m m m m m m m m m m m m m m  m 5: :!m m  m  m m *m m m    m  
m m1  mm& m mmm  mm mmm  m1 mm m ro | ? m




c

  m




m  
mm) m 
m m 

m  m


m 
mmm m 
m m  mm 
m m m
 m  m mmm m  m) m m 
m m m  mm 5mm m' mmmm mmm
 F m m m m m m  
 m m  m m  m  m m m m :#m  m
m m m 1  m  m m m 9#m m  
m m m  m   m m  m  
m  m m #m m Km  m m m 1  m 

mm:K m m  m mm m  mmmm m mm  m 9#m   m 9Km m  m m  m m m  m  m m m m   m m  
m m) m

 m 
m m m mm& mm  mmm  m   m |nvestment function: m  m m  m m m m m m '
m *m m  m   m m m m  mm  mmm 
mm


mmmm F m ?  m/m& 
m*m  mmm  m  m m   m/mm m  m m mm mm  m  mm m m)  mmm mm  mm  m  m  m m Saving and investment equality: 6m m' mm 
m  mm1  mmm mm  m m

m mm)  m  mEDm mm  mmm 
m  mm1   m !  m/mmm  
m m   mm  mm m'mm

m  m  m 
m  m m m  m 1 m  
m m m  
m  m m m m m m

mm m   

mm

m

8< 3m////////////m<3m

m

m

8< 3m//////////////m<3m

m

6 Fmmmmmm m

m

rM | ? m




m

8 
m 8 mm m

c

  m




mm mm m1 mmm

m
mm


m  m m m

mm

m

m

m

S |Ê S) |Ê ESVMEÊV |)

6m m' mmmm mmm
 F m m m m m m m 
 m m '/ 'm m   m m  
m  m m  m m  / 'm m   m m m m  m m  
m  m m m  m  
Fm m *m  m 
 m m m m  m
 m 

mmm  
m  m m mm m  m

mmm 
mm m m   m m m m m  m m 
m m m  m m m  m  m m m m  m 
 m m m &m  m m m m m m m  
m  m m m  m m  m m mmmmmm
 m:m:Dm:-m m1  m m m m  m m  2 m  m () m  m m   m m 

m 
 m m m m
mmmm  m mm m mm

m  mmm
m  2 m mm) m& m

m  mmm m  m m mKeynesian view: ) m' mm 
m  mm1  mmm F m ccounting equality: 
m 1  m  m m 1  m m   m m "m ' m m m m m *m I
 m  Dm  m  
m  m m m  m 1 m m m  m m  m m m  m
m  m mm m 
mm  m  
m  mm m 1 mmm 

m  m6m m' mmmm mmm1 F m m

89/!///////////m<3m

m

89/!///////////m<3m

9/!mmmm1 mm m

Õm 8m 6 Fm 98m

rë | ? m




8 
m

c

  m




8m !8!m 8!

m  m ) m' mmm m F m m

98!;//////////m<3m

m

98!;//////////m<3m

  m m1 m<3m  m<3Fm !;8 ;!m &mm 1 m  mm  2 m  m   m m  m  m  m  mmm 
m 1  m  m ) m    m m  m m  m  m  m m m m  
m  m m  m  m  m   m  m m 1  m m  
m  m m m 'm1  m  mm m' mm unctional equality:  m 1  m  m  
m  m m m  m 1 m  m m m 1 m  m m mmm m m 
m  mm mm1 mm  m m m 1 m m m 
m m mmmm

m  mmmm m m 
mm m m 6m m' mmmm mmm  F m m #CCm KCCm %CCm >CCm BCCm LCCm OCCm @CCm $CCm

 
m /#Bm Cm #Bm %Cm >Bm LCm OCm O$m @Cm

m #Cm KCmmm'  m %Cm >Cm BCm LCmm1  m L$m OBmmm m O$m

m  m m m   m m m  m m m m   m  
m  m m 

m m   m

m 
m  m m mmm&m  mmm 
m1 m m

rw | ? m




c

  m




m  m m 1  m m  m 1 m m  
m  m m   m m m 
m  m 6m m' mmmm mmm 
F m m m m m m m m 
 m m m  
m  m  m m m m m  m &m m  m m  m  m mmm:mm:mmm1  mmm9Dmmm
  m m 
m  mm9-m  
mm
  m mm   mm 9m m  
m  mm m 1 mm  m  m ‘onclusion  m m m m m  m   m   m  m  m  m m  
m  m   m m m m m   m  m m  m   m m m m  m   m m m   m  
m   m   m  m m m  
m 

 
m m  m  m m   m m  m m   m  m m  m m m m 

 
mm  m  mm  mm m m1  mm 
m  mm   m m m     m m   m m m  m m   m m m m  m  m  m m m   m m

m m   m  m m m 
  m  m m m 

 mm:' / m  m:'/m   mmm 
m  mm m m m

rG | ? m




c

  m




Unit-ü Quest Define multiplier and explain its working? Or Examine the meaning, working and importance of multiplier? ns introduction m m m m m    m m m   m  m m )  m  m m mm  m  mmm m mm   m m) mmm

 m #$%CDm m ) m  m   m  m m ) Dm    m m m  m   m    m m m  m   m ) m    m m *m m m  m m    m )  m    m m m   m  m m m  
m  m m   m  m  
mm) m  m  mm m m   m mm  m  mm m  m m  

m 98!;m m  m  m m m m   mmm m m  m
 m  mmmm m m m m   m

mm  mmm mm
mm  m mmm'mm  m m m 6m m  m m
m m    m  m
m m 

m *m m 5G: :5m) m  m mm m mmm  mm mm m   mmmm  mm m m  mmm  mm m  mm


m m m 

m *m m 5G: :5m 4E?E:m Am 5!:m 4E?E:m m m  m m   m mm  mmm  m m 6m m' mm   mm  

Fm )8mP9mAmPm )m8   m P98! 
mmm P8! 
mmm 6m m' mmm  m  Fm 98!;m P98P!;Pm P8P9/P!mmmm//////////m<#3m 5m m mm*m F m

^0 | ? m




c

  m

)8P9APmmmm




mmmmmP98)Pmmm//////////m
 mm1 mABm @A$m $A#Cm #m m

A!m<? 3m #m Qm #A%m Sm #ABm #A$m #A#Cm Cm

4E?E:m<)38#A? m #m Km %m >m Bm $m #Cm 559mTm

mmmmmmmm mmm mm2mmm   m m   mmm
 m  m mm  m  mmm
 m  mm m m?!mm  m
  m mC m  m m m#mm mCU?!Hm#mm   mm  m mmm#m  mmm m #U*UTm mm   mm#mm mm mmmm  m  m
mm  m  m
m m  m  m m ?!m m Cm m m    m m Tm m ?!m m 1 m m #m  m m  m  mmmmmmm  mmm m m  m mmm  mm  m

m   m mTm m1 mm#mm  m mmm#m  mT m ssumptions of the multiplier: ) m  m m    m  *m   m   m m m m m  m m m    m  Fm ¦m  mm m 
mm mm  m m  mmm  m ¦m 
 m  mmmm m ¦m !mm mmm

m m ^1 | ? m




c

  m




¦m  m mmm
mmm   m m ¦m mm  mmmm   m  m mm mmm   m  m ¦m  m mm 
mmm m Working of the multiplier: m   m *mmm Fm ¦m  
   ¦m 
   5m Dmm m m


F m orward working: 6m *m  m    m m m  m  
m m m
m  
 m m m  m m  
 mmm   mm  mmm  mmmm  m m 
m m m  m  mmm m  
m m 6m m *mm1 m  m  m mm mmm mm 
m m   m m m  m m    m   m m   m m  m
 m m '  m m  m m m  
m < 3m  m 

m m   m   mmm  m'  mm m 
mm) m mm m 
m m  m  mm m m  *mmm mm mm' m  m *
mm   mm mmm m'   m m  m m m  m 
 m   m m m m Qm m m  m  m m #CC  mm

m   m  mm mm  m  mm m m#CC   m Qm m m m m 

m m    m  m m m m
 m m 

m  m m   mm  m  mm mm m m  mm m We may explain it help of the following 457m

Pm <5!::5m P9m m <5!::5m P!8!P9m 5m5G: :53m 5m5!:3m !8CBm

Cm #m Km %m >m Bm m

#CCm m m m m m

^r | ? m




#CCm BCm KBm #KBm LKBm Cm

BCm KBm #KBm LKBm %#Km Cm

P m m
c

  m




m m m   m m m  m m  m m m #CC  m m m m m   m

 m  mm m  m  mmmmm m BCm   mm  m  m m BC  m

m m m m m
m m   m m  m m  m m m m  m

 A m m  
m  m m m
 m m m m K  m % m >m  m Bm

 m m m mmmmCm 
mmCm  mmm2  m )8P9APm P9m Pm mmmm mm m  mm
mm


m  m Fm P98)Pm KCC8Km#CC m 6 m)8Km<?!8#AK3m P8#CC  m
m 

 m   m  *
m m m    m 6m  m ' mmmm mmm


m
 F m m m mmmm m m m  m 
 m m '/ 'm m   m m m  m m m IDm  m 

m m?!mm1 mmQm!8mmmm mm mm1 m  m m<>Bm 
m  3m m m :m m  m m 9Dm m m m m m  m m  m   m   m m m m !;;Pm m  m  m 

m  m m 1 m  m  m m :-m  m m m  m9Dmm9-mm
mmPm9mmmm  mm!;m  m!;;P m m m m m ^^ | ? m




c

  m




mm
m&mmm *mm? mmm  m

mm  m m *
m?!m&mmm m m m' m   m m m *
m? mm mI Dmmm 
mmm m mmCBm m m ? m m Qm m m m  m m  m m m I Dm m m :Dm m :Dm m m  m 1  mm  m9Dmmmm  m mm  mm;Pmmmm m m

m m:-mm9-m  mm$m  mmmm9D9-mm'  m  mm  mmmP m B‘KWRD O?ERV|OÊ O MULV|?L|ER/RE ERSE O?ERV|OÊ:    mm m  m
 m mm *mmm * m  m mm mmm  m  m  
m m  m  m m    m m m 
 m  m m 

m m  m m
m m m 

m   m m m m m m m 

m   m  m  m  m m 6m m m  m m m  m ?!m   m
  m m  m m    m  m
  m m  m  m m m  m m m  * m  m m m    m 6m  m' mmm mmm
 F m m m m m m m m 
 m m m m  
m  m m m m m  m m  m  m m  
m  m mmm:#mm9#m  mmm6mm  m mmmDmmm

m  m m9#mm9Km  mmm1  m

mm:K9Km mmm   m m9#9Km mm m  mmmm   m m  mm m Leakages of the multiplier E *
m mm m  m mmm  mm m m *mm   m m m m m  m m  m   m m m  m  m m  *
m m    mm Fm

Õm Y  "
 mm 
m

 mm2mm    m

Õm Y       
 mm 1  m   m * m

mmm   m  m m ^ü | ? m




c

  m




Õm ?       m2mmm    m

m

mm m

mmm '  mm m m m *m  m m m Õm     m   m m

mm

 mmm  m  m mmm
 m m Õm ?     ? m  m m  m   m  *
m  m m    m 6m m  m m m   m   m m m  m m m m  m   m  m 

m  m m mm  mm   m  m m Õm Ê
    m  mmmmmmm  mm  m
 mm m m m  *
mmmm mm  m m Õm •      4   m  m m m  m  m m  m m m  m '  m m m
 mm  *mm   m m m Õm V   ' m  mm  m  m  mm *mm   m  m m Õm ?       5m m m mm 
m mmm  m   m
 mmm   m  m  mm  m m m

m  mm   m  m m |mportance of the multiplier m m m    m m m m m   m  m m ) m m m  m  m   m m ;m m mmmm m  m ;m 
m  mm1  m ;m   mmm   m ;m m m

m  m ;m m    mm mm m  m  m m 
 m Limitations 5m m m   m m    m  m m m  m m m m m ) m  m   *
m mm mm mm mm m  mm  mm m  m ^o | ? m




c

  m




 m m   m &m m m m m m  
 m m m m ) m m m   m m 2 mmmm   m  mm  mm


m
  m ¦m |t is not a dynamic ‘OʑE?V )  mmm   mmm m  mm& mm  mmm  m mmmm m m ¦m  L|B|L|V O VHE ‘OÊSUMER goods m mmm
 mmmmm     mm m
 m  mmm    m 

m  *m 

m &m m  m 

m m     m m m  m
 m m *
m  m m  m   mm m m  m m ¦m Simple assumptions m m m mm   mm m mm m m
mm m m  mDm 2 m m m ¦m Strange and vague concept ? m " 2 m  m  2 m m m m    m  
m m m m 

m m m m  
m m m m m  mm m m
 m m ¦m Vautological   
m  m   m  
m m    m  m m  m  m m  mm mm*m mm mm  m m 

m  m mm m mmm m m' 
mmmm    m m ¦m Deficit financing m
m m  mmm  mm m 
mmm  m

m m m  m m  m  m&m) m
  m m m m m m m m m

^M | ? m




c

  m Unit-ü




Q.r. Do you think that Keynesian system applicable to under development! Or |s Keynesian theory applicable to underdeveloped country? . |ntroduction0/m)  m mmm    mm m mmmmm m  mm   m  m   m m  
m m  m  m  

m )  m m m  
mm mm   mmm 
m mm m m  mmm mm m &m mm:
m mm 
mm m  m
m  m m

mm  mm mmm m m ) m m  m & m m  m m     m m )  m m m     m  m m m  m m  m m m m )  m m  m m ' m m m  m m m m     mm    m m mm ssumption Of Keynesian Vheory:âm )  m mm  mm'mm   m  m âm m)  m mm m m m  m âm m)  m mm  mm  m m âm )  m m'm mm  m âm E  m 2 mm  mmm

m 
m

m m m m m )  m  m m   m m m    m m m  m    
m m   m   m m5mmm mmm mm  m  mmm )  m m m m  m   mm  m   m mm m 0/m Õm :m7  m Õm ?   mm!m Õm


m

Õm 
 m mmm  m Õm  mm m Õm m   m

^ë | ? m




c

  
 m Effective Demand0m/m4  mm  m mm  mmm   mm mm  m

) m 

 m m 
m m m m  m /m '  m 4   m m     m m mmm/  m  mm mm m 
 m  mm   m   m  m   m  m m  m m *m m m   m m m  m   m   m  m   m m   m m m *m m   m  m m )  m mmm   mmm    mm  m   m m ?roportionate to ‘onsumem 0/m  m   m  m m )  m m m m    m m m6m' mm  mmm  mHmm mmm  m m m  mm m mm mmm&mm    m mm

 mmm m
 m& m m m m m  mm mm  m m  m  m m m
 m  m  m   m m m m  m  

 m  m  m  m

 m
 m  mmmm m
m m mm  m m Saving:-  
m m ) m  
m m  m m  m m m 'm m  
m  m  m m m  m m


m   mm  mmm    mm    m m m 
mm m m     m  m !  m   m m m * m m m  m  m   m   m m  m  
m    m  
m m m  m m  m m m )  m m m    m m     m m m  m   m m 
mm m mmm Marginal Efficiency of ‘apital:-m  m   m   m m m )  m m m 
 m  m m   m  
m m ) m m m m   m   m m m m m :m m   m  m m m  m  m m m  m :m m   m 

m  m m m   m:mm  m   mm    m mm mm  mmm    m m mm m  m m m:mm  m m mmm mm *mm  m  m m  m  mm

m2mm *mm

mm  m*mm m m m  m Rate of |nterest :-mm mm mmm m   mmmmm)  m mm

mm m  mm 1  m  mm 
mm) m  mm mm m
 m

m m 1  m   m  m 
 m m m m  m  m m 1  m   m &m m   m   m  m m m m m    m  m m 1  m   m  m   m  m    m mm m
mm m m m m m m 1  m  m m  mm ' m m mm mm m

^w | ? m




c

  
 m Vhe multiplier :- m   m mm  mm m m  mmm  mm

 m   m m m


m m ) m
m m  m m m    m  m m    m  m    m mm mmm 
m 
mm mmm  m  m mmm m   mm  m mmm) m m  *
m m mm mmm mm m  m  m  m   m mm  m   m  
m m 7 m  m m +) m  m    m m m   m m     m  m  m  m m m m   m m m  m  m  m m m  m m   m m  m m   m  m m  m   m  m m m    m m mm m    m m *m  m  m mmm  0/m m

  m  mmm m

m

m mm
  m  m/
  mmm m

?olicy Measure:-m m   m m  m m  m  m ) m m    m m   m   m  m& mm    m m mm  m m mmm mmm  m m

m mm m  m mmm mm  m  m mm *mm  m  m m

mm  m) mmmm  mm m ‘onclusion:mmmm m m m m m m  m )  m  m m m m    m m     m  m m mm m  mmm *m
 m m7 m, m m m m m m m  mmm    mmm m *m  m mm
 mmm  2
m  m 
mm  mm     m m  m m m m m 
m  m   m  m  m
  m  
mm)  m   m

m

m m mm

^G | ? m




c

  m

m m m m

ü0 | ? m