,Contents
List of Figures
Preface
UNIT I INTRODUCTION
1 An Introduction to Macroeconomics
Macroeconomics and Microeconomics
Background of Macroeconomics
Need to Study Macroeconomics
Concepts in Macroeconomics
Summary
Review Questions
2 The Circular Flow of Income and Expenditure
Introduction
The Circular Flow of Income in a Two Sector Economy
The Circular Flow in a Three Sector Economy
The Circular Flow of Income in a Four Sector Economy
Summary
Review Questions
UNIT II NATIONAL INCOME AND ITS DETERMINATION
3 National Income
Introduction
National Income Aggregates
Measurement of National Income
, Summary
Review Questions
4 The Classical Model of Income Determination
Introduction
Say’s Law
Output and Employment in the Classical Model
A Criticism of the Classical Model
Summary
Review Questions
5 The Keynesian Model of Income Determination in a Two Sector Economy
Introduction
Aggregate Demand in a Two Sector Economy
Consumption
Saving as a Counterpart of the Consumption Function
Determination of Equilibrium Income or Output in a Two Sector Economy
Summary
Review Questions
6 Shifts in the Aggregate Demand and The Multiplier
Introduction
Shifts in Aggregate Demand and the Multiplier
Uses and Limitations of the Multiplier
Applicability of the Multiplier to Less Developed Countries
The Multiplier and the Paradox of Thrift
, Summary
Review Questions
7 The Keynesian Model of Income Determination in a Three Sector Economy: Introduction of
the Government Sector
Introduction
Determination of Equilibrium Income or Output in a Three Sector Economy
Multipliers in a Three Sector Economy–The Fiscal Multipliers
Summary
Review Questions
8 The Keynesian Model of Income Determination in a Four Sector Economy: Introduction of
the Foreign Sector
Introduction
Determination of Equilibrium Income or Output in a Four Sector Economy
Equilibrium Income and Output
Introduction of Government Transfer Payments in a Four Sector Model
Multiplier in a Four Sector Economy–The Foreign Trade Multiplier
Summary
Review Questions
UNIT III THEORIES OF CONSUMPTION AND INVESTMENT SPENDING
9 Theories of Consumption
Introduction
Absolute Income Hypothesis
Relative Income Hypothesis
Permanent Income Hypothesis
List of Figures
Preface
UNIT I INTRODUCTION
1 An Introduction to Macroeconomics
Macroeconomics and Microeconomics
Background of Macroeconomics
Need to Study Macroeconomics
Concepts in Macroeconomics
Summary
Review Questions
2 The Circular Flow of Income and Expenditure
Introduction
The Circular Flow of Income in a Two Sector Economy
The Circular Flow in a Three Sector Economy
The Circular Flow of Income in a Four Sector Economy
Summary
Review Questions
UNIT II NATIONAL INCOME AND ITS DETERMINATION
3 National Income
Introduction
National Income Aggregates
Measurement of National Income
, Summary
Review Questions
4 The Classical Model of Income Determination
Introduction
Say’s Law
Output and Employment in the Classical Model
A Criticism of the Classical Model
Summary
Review Questions
5 The Keynesian Model of Income Determination in a Two Sector Economy
Introduction
Aggregate Demand in a Two Sector Economy
Consumption
Saving as a Counterpart of the Consumption Function
Determination of Equilibrium Income or Output in a Two Sector Economy
Summary
Review Questions
6 Shifts in the Aggregate Demand and The Multiplier
Introduction
Shifts in Aggregate Demand and the Multiplier
Uses and Limitations of the Multiplier
Applicability of the Multiplier to Less Developed Countries
The Multiplier and the Paradox of Thrift
, Summary
Review Questions
7 The Keynesian Model of Income Determination in a Three Sector Economy: Introduction of
the Government Sector
Introduction
Determination of Equilibrium Income or Output in a Three Sector Economy
Multipliers in a Three Sector Economy–The Fiscal Multipliers
Summary
Review Questions
8 The Keynesian Model of Income Determination in a Four Sector Economy: Introduction of
the Foreign Sector
Introduction
Determination of Equilibrium Income or Output in a Four Sector Economy
Equilibrium Income and Output
Introduction of Government Transfer Payments in a Four Sector Model
Multiplier in a Four Sector Economy–The Foreign Trade Multiplier
Summary
Review Questions
UNIT III THEORIES OF CONSUMPTION AND INVESTMENT SPENDING
9 Theories of Consumption
Introduction
Absolute Income Hypothesis
Relative Income Hypothesis
Permanent Income Hypothesis
