BUSINESS ECONOMICS ( Macro) (Major) MAKAUT BBA SECOND SEM

Module 1: Introduction to Macro Economics

1.1.

Introduction to Macro-Economics

13

1.1.1.

Meaning and Definition of Business Economics

13

1.1.2.

Meaning and Definition of Macro Economics

13

1.1.3.

Nature of Macro Economics

14

1.1.4.

Scope of Macro Economics

15

1.1.5.

Role of Macro Economic Analysis in Formulation of Business Decisions

16

1.1.6.

Importance of Macro Economics

17

1.1.7.

Limitations of Macro Economics

17

1.2.

Aggregate Demand and Aggregate Supply

18

1.2.1.

Introduction

18

1.2.2.

Concept of Aggregate Demand

18

1.2.2.1.

Components of Aggregate Demand

19

1.2.2.2.

Aggregate Demand Curve

20

1.2.2.3.

Aggregate Demand Curve Slope Downwards

20

1.2.2.4.

Aggregate Demand Curve Might Shift

22

1.2.3.

Concept of Aggregate Supply

23

1.2.3.1.

Aggregate Supply Curve

24

1.2.3.2.

Long-Run Supply Curve

24

1.2.3.3.

Long-Run Aggregate Supply Curve Might Shift

24

1.2.3.4.

Short Run Supply Curve

26

1.2.3.5.

Short-Run Aggregate Supply Curve Might Shift

27

1.2.4.

Macroeconomic Equilibrium-Model of Aggregate Demand and Aggregate Supply

28

1.3.

Marginal Propensity to Consume (MPC)

29

1.4.

APC (Average Propensity to Consume)

29

1.5.

MPS (Marginal Propensity to Save)

30

1.6.

MPI (Marginal Propensity to Invest)

31

1.7.

Paradox of Thrift

32

1.7.1.

Introduction

32

1.7.2.

Paradox of Thrift in Recession

34

1.7.3.

Criticisms of Paradox of Thrift

34

1.8.

Introduction to Sustainable Economics

34

1.8.1.

Meaning and Definition of Sustainable Economics

34

1.8.2.

4 Pillars of Sustainability

35

1.9.

Environmental Externalities

38

1.9.1.

Meaning of Environmental Externalities

38

1.9.2.

Types of Environmental Externalities

38

1.9.3.

Market Failure and Environmental Externalities

39

1.10.

Economics of Natural Resource

39

1.10.1.

Introduction

39

1.10.2.

Types of Natural Resources

40

1.11.

Blue Economics (Economics of Sea)

44

1.11.1.

Meaning and Definition of Blue Economics/ Economy

44

1.11.2.

Need of Blue Economy

45

1.11.3.

Factors affecting Blue Economy

46

1.11.4.

Importance of Blue Economy

46

1.12.

Exercise

47

Module 2: National Income and Business Cycle

2.1.

National Income

48

2.1.1.

Meaning and Definition of National Income

48

2.1.2.

Features of National Income

48

2.1.3.

Concepts of National Income

49

2.1.4.

Gross National Product (GNP)

49

2.1.5.

Gross Domestic Product (GDP)

51

2.1.6.

Net National Product (NNP)

52

2.1.7.

Net Domestic Product (NDP)

52

2.1.8.

Personal Income (PI)

53

2.1.9.

Disposable Income (DI)

54

2.1.10.

Per Capita Income

54

2.2.

Measurement of National Income

58

2.2.1.

Output or Production Method

58

2.2.2.

Income Method

59

2.2.3.

Expenditure Method

62

2.3.

Factors that Determine the Size of National Income

65

2.4.

Double Counting and Concept of Value Added

66

2.4.1.

Concept of Double Counting

66

2.4.2.

Methods to Avoid Double Counting

67

2.4.3.

Final Output Method

67

2.4.4.

Value Added Method

67

2.5.

Real and Nominal GNP

68

2.5.1.

Concept of Real GNP

68

2.5.2.

Concept of Nominal GNP

69

2.6.

Deflator

70

2.6.1.

Concept of GNP Deflator

70

2.6.2.

Calculation of GNP Deflator

70

2.6.3.

Importance of GNP Deflator

71

2.6.4.

Limitations of GNP Deflator

71

2.7.

Concept of Business Cycle

72

2.7.1.

Meaning and Definition of Business Cycle

72

2.7.2.

Characteristics of Business Cycle

72

2.7.3.

Different Phases of Business Cycle and their Basic  Characteristics

73

2.8.

Exercise

78

Module 3: Monetary Economics, Banks & International Financial Institutions

3.1.

Money

79

3.1.1.

Evolution of Money

79

3.1.2.

Meaning and Definition of Money

81

3.1.3.

Nature of Money

81

3.1.4.

Functions of Money

82

3.1.5.

Importance/Role of Money

84

3.1.6.

Types of Money

85

3.1.7.

Paper Currency/Money

85

3.1.8.

Metal Money

86

3.1.9.

Plastic Money

87

3.2.

Indian Money Market

88

3.2.1.

Concept of Money Market

88

3.2.2.