Business Economics (Macro)

Unit

Name and Content of the Chapter

Purpose & Skills to be Developed

Unit 1

Introduction to Macro Economics

1.1 Meaning and Definition of Macro Economics.

1.2 Nature of Macro Economics.

1.3 Scope of Macro Economics.

1.4 Significance of Macro Economics.

1.5 Limitations of Macro Economics.

1.6 Macro Economic Objectives.

Purpose: To make the students aware of concepts in macroeconomics

Skills: Analyze & think critically, develop writing skills.

Unit 2

National Income

2.1 Meaning and Importance of National Income.

2.2 Concepts:

2.2.1 Gross National Product (GNP )

2.2.2 Net National Product ( NNP)

2.2.3 Gross Domestic Product (GDP)

2.2.4 Per Capita Income ( PCI )

2.2.5 Personal Income ( PI )

2.2.6 Disposable Income ( DI )

2.3 Measurement of National Income: Methods and Difficulties

2.4 Circular Flow of Income: Two sector model

Purpose: To make the students aware of basic concepts in national income

Skills: Analyze & think critically, quantitative aptitude and develop writing skills.

Unit 3

Theories of Output and

Employment:

3.1 The Classical Theory of Employment: J.B.Say

3.2 Keynes Criticism on Classical Theories of Employment.

3.3 Keynesian Theory of Employment.

Consumption, Saving and

Investment:

4.1 The Consumption Function:

4.1.1 Meaning

4.1.2 Marginal Propensity to Consume (MPC)

4.1.3 Keynes’s Psychological Law of Consumption.

4.1.4 Determinants of Consumption.

Purpose: To help the students to understand the concept of Employmentand theory Output.

Skills: Understanding, writing skills, critical thinking.

Unit 4

4.2 The Saving Function:

4.2.1 Meaning,

4.2.2 Marginal Propensity to Save (MPS)

4.2.3 Determinants of Savings

4.2.4 Relationship between Consumption and Saving Function (MPC and MPS)

4.3 Meaning and Types of Investment: Gross, Net, Induced and Autonomous.

4.4 Marginal Efficiency of Capital and its Determinants.

4.5 Concepts of Investment Multiplier and Acceleration Principal

Purpose:

To understand the concepts of Multiplier and Accelerator. To impart knowledge of Consumption Function, Saving and Investment Function

Skills: Understanding, ability to analyze,

quantitative aptitude and writing skills.