Concepts of Macro Economics and National Income Determination

Definitions importance, growth, limitations of macro-economics, macro-

economic variables. Circular flow of income in two, three, four sector
economy, relation between lea ages and in!ections in circular flow.
National Income"Concepts, definition, methods of measurement,
National income in India, problems in measurement of national income
# precautions in estimation of national income.
$nit II lectures"-%& lectures"-'
Macro Maret (nalysis )heory of full employment and income"
classical, modern *+eynesian, approach, consumption function,
relationship between saving and consumption. Investment function,
concept of marginal efficiency of capital and marginal efficiency of
investment. National income determination in two, three and four sector
models. Multiplier in two, three and four sectors model.
$nit III lectures"-'
Money Maret -unctions and forms of money, demand for money-
classical, +eynesian and -riedmanian approach, measures of money
supply, .uantity theory of money, inflation and deflation.
$nit I/ lectures"-'
E.uilibrium of 0roduct and Money Maret )he I1-2M model, product
maret and money maret, derivation, shift. E.uilibrium of I1-2M
curve. (pplication of I1-2M model in monetary and fiscal policy.