SYLLABUS

UNIT-I

Nature and scope of macroeconomics, circular flow of income; national income – alternative concepts and the measures, income and their interrelationship, stock and flow variables, aggregate demand, supply and macroeconomic equilibrium, nature of a trade cycle, causes of booms and recessions.

UNIT-II

Macro analysis of consumer behavior, cyclical and secular consumption, income consumption relationship, absolute, relative and permanent income hypothesis, simple Keynesian Model of income determination; multiplier analysis.

UNIT-III

Nature of fiscal policy, fiscal deficits, fiscal policy in relation to growth and price stability, basic issues in fiscal deficit management, nature and management of public debt; business taxes – types, rationale and incidence.

UNIT-IV

Money supply measures; credit creation process and money multiplier, instruments of monetary policy; promotional and regulatory role of central bank; monetary policy – types, causes, effects and control measures.