Macro Economics ( 195+Mcq )

                                                                                                                                    Syllabus

Paper III: P22-MACRO ECONOMICS

UNIT- I            

Concept and Scope of Macro-Economics; Macro-Economic Paradoxes: Wage-Employment Paradox and Paradox of Thrift, The Circular Flow of Income and Expenditure.

The Analysis and Measurement of Economic Activity - National Income Accounting: Concept and Definitions of National Income. Various components of National Income, Methods of Measurement of National Income and Welfare.

UNIT- II

Classical Macroeconomic Models – Say’s Law, Quantity Theory of Money, Wage-Price Flexibility and Full employment.

Aggregate Expenditure – Consumption Function: Concepts of Propensities of Consumption and Saving. Absolute Income Hypothesis, Relative Income Hypothesis; Consumption Puzzle and Permanent Consumption Hypothesis. Investment Function: Types, Marginal Efficiency of Capital (MEC) and Marginal Efficiency of Investment (MEI).

UNIT- III

The Concept of Multiplier; National Income Determination in an Open Economy IS-LM Analysis - Derivation of IS and LM Functions; Joint Determination of National Income and rate of Interest and Shift and IS and LM Curves.

UNIT- IV

Theory of Inflation – Meaning, Types and measurement, Demand Pull and Cost Push Inflation. The Philips Curve, Effects of Inflation, Anti-Inflation Policies – Monetary and Fiscal Policies.

Business Cycles – Concept, Types and Phases; Keynes, Hawtrey, Hicks Models.