Topics of Macro Economics

LIST OF TOPICS OF MACRO ECONOMICS

1. INTRODUCTION AND NATIONAL INCOME 1. 2. 3. 4. 5.

The Nature Nature And And Scop Scopee of Macro Macro Econom Economics ics Nationa Nationall Income Income – Meanin Meaning g and and Measure Measuremen mentt Econom Economic ic Welfar Welfaree and and Natio National nal Income Income Natio Nationa nall Inco Income me Acco Accoun untin ting g The The Circ Circul ular ar Flo Flow w of of Inco Income me

2. NATIONAL INCOME AND ITS DETERMINATION 1. The Classica Classicall Theo Theory ry of of Empl Employm oyment ent 2. Say’ Say’ss Law Law of Marke arkett 3. The Principle Principle of Effective Effective Demand Demand:: Aggregate Aggregate Demand Demand and Aggreg Aggregate ate Supply 4. The Keynesian Keynesian Model of of Income Determination Determination in a Two Two Sector Sector Economy Economy 5. Shifts Shifts in the the Aggrega Aggregate te Demand Demand And And the the Multipl Multiplier  ier  6. The Keynesian Keynesian Model of of Income Determination Determination in a Three Three Sector Econom Economy y 7. The Keynesian Keynesian Model of of Income Determination Determination in a Four Four Sector Sector Economy Economy 3. CONSUMPTION – INVESTMENT – SAVING FUNCTIONS 1. The The Consu Consump mptio tion n Funct Functio ion n 2. Theory Theory of the the Cons Consump umption tion Functio Function n 3. The The Inv Invest estme ment nt Funct Functio ion n 4. The The Con Conce cept pt of Multi Multipl plier  ier  5. Comp Comple lex x Mult Multip ipli lier erss 6. Fore Foreign ign Trad Tradee Mul Multip tiplie lier  r  7. The Princ Principle iple Accel Accelerati eration on and and the Super Super Multi Multiplie plier  r  8. Some Some New New The Theor ories ies of of Inves Investme tment nt 9. The The Savi Saving ng Func Functi tion on 10. Saving and and Investment Investment Equality Equality 11. The Model Model of National Income Income Determination Determination 12. The Keynesian Theory Theory of Income, Output and Employment 13. The Classical Vs. Keynesian Keynesian Models of Income and Employme Employment nt 14. Unemploym Unemployment ent and Full Employment Employment 15. Applicability Applicability of Keynes’s Theory to underdeveloped underdeveloped Countries Countries 4. MONETARY THEORY 1. 2. 3. 4. 5. 6. 7. 8. 9.

Money Chan Change gess in the the Valu Valuee of Mone Money y The Keynesi Keynesian an Theo Theory ry of Money Money and Prices Prices Friedma Friedman’s n’s Restate Restatemen mentt of Quantity Quantity Theo Theory ry of Money Money The The Su Supply pply of Mone Money y Credit Credit Creatio Creation n by by Comm Commerci ercial al Bank Bankss Central Central Banki Banking: ng: Func Function tionss and Cred Credit it Control Control The The Dem Deman and d for for Mon Money ey Theo Theorie riess of of Inte Interes restt Rate Rate

10. Term Structure of Interest Rate 11. The Real Balance Effect and Pigou Effect 12. Wage-Price Flexibility and Full Employment 13. Inflation and Deflation 14. Business Cycles 5. GROWTH MODELS AND MACRO ECONOMICS IN OPEN ECONOMY 1. The Harrod – Domar Models 2. The Solow Swan Model of Growth 3. The Endogenous Growth Theory 4. Steady State Growth 5. The Golden Rule of Accumulation 6. Balance of Payments: Meaning and Components 7. Adjustment Mechanisms of Balance of Payments 8. Double Entry Book Keeping and Equilibrium Balance Payments 9. Foreign Exchange Rate 10. Foreign Exchange Rate Policy 6. MACRO ECONOMICS POLICIES 1. 2. 3. 4. 5. 6. 7. 8. 9.

Macro Economic Policy Monetary Policy Classical, Keynesian and Modern Views on Monetary Policy The Liquidity Theory of Money Fiscal Policy Monetarism Versus Keynesianism IS and LM Functions: General Equilibrium Product and Money Market Extensions of IS-LM Model Effectiveness of Monetary and Fiscal Policy