SYLLABUS

Macro Economics Policy

1. Introduction to Macroeconomics (Chapter 1) What is Macroeconomics? Macroeconomic Issues in an Economy. 2. Introduction to National Income Accounting (Chapter 2) Concepts of GDP and National Income; Measurement of National Income and Related Aggregates; Nominal and Real Income; Limitations of the GDP Concept. 3. National Income Determination (Chapters 2, 4, 5, 6, 7) Actual and potential GDP; Aggregate Expenditure-Consumption Function, Investment Function: Equilibrium GDP; Concepts of MPS, APS, MPC, APC. Autonomous Expenditure; The Concept of Multiplier. 4. National Income Determination in an Open Economy with Government (Chapter 6, 16) Fiscal Policy-Impact of Changes in Government Expenditure and Taxes; Net Export Function, Net Exports and Equilibrium GDP. 5. GDP and Price Level in Short and Long Run (Chapter 11, 12) Aggregate Demand and Aggregate Supply; Multiplier Analysis with AD Curve and Price Level Changes; Aggregate Supply in Short Run and Long Run. 6. Money in a Modern Economy (Chapter 8, 9, 10, 14, 15, 16) Concept of Money in a Modern Economy; Monetary Aggregates; Demand for Money; Quantity Theory of Money; Liquidity Preference and Rate of Intrest: Money Supply and Credit Creation and Monetary Policy. 7. IS-LM Analysis (Chapter 17) Derivation of IS and LM Functions: IS-LM and Aggregate Demand; Shifts in AD Curve 8. Balance of Payments and Exchange Rate (Chapter 18) Balance of Payments; Market for Foreign Exchange; Determination of Exchange Rates Reference Test Bool Macro Economics by Chaturvedi