MACROECONOMICS

 
CODE: BBF1201

LECTURER: DHANYA JAGADEESH

BAISAGO UNIVERSITY COLLEGE
Introduction to Macroeconomics
Macroeconomic objectives and policy instruments
 Economic growth
 Full Employment
 Price stability
 Balance of Payments Stability
 Equitable distribution of Income
• Policy Instruments Are :
 Fiscal policy
 Monetary Policy
The interdependence between the major Flows,
major sectors ,and Markets in the economy
Difference Between Stock and Flow variable.
Major Flows in the Economy
Major sectors in the economy
Major markets in the economy
Difference Between Stock and Flow variable.
Stock variables are measured at a particular point of Time,
Flow variables , which are measured over a period of Time
Major flows in the economy
Production, Income, & Spending

Production

Spending Income
Major markets in the economy
Goods market
Factor market
Financial /stock Market
Foreign market
Major sectors in the Economy
Household
Firm
Government
Foreign Sector
Financial Sector
Circular flow of income , Spending & Production
including Firms, Households, Government.
Goods & services Factors of production
Firm Sp
en
m e din
o g
Inc

Goods Market Govt Factor Market

Sp e
m
en co
d ing In

House Hold
Factors of production
Goods services
Circular flow of income , Spending & Production
including Firms, Households, Government, Financial institutions and Foreign sector.

FIRMS

Z S I
C G

FOREIGN FINANCIAL GOVERNME

SECTOR SECTOR NT
C
T
X
S

HOUSE HOLD