,MACROECONOMICS
THEORY AND POLICY
(For Postgraduate (M.A., M.Com.) and B.A. (Hons.) Students of Economics,
Commerce, Business Management and Competitive Examinations)
ADVANCED ANALYSIS OF
• Income and Employment Determination
• Theories of Consumption Function and Investment
• Monetary Demand & Supply
• Money, Prices and Inflation
• Theories of Business Cycles and Stabilisation Policies
• New Classical Macroeconomics based on Rational Expectations
• New Keynesian Economics
• Relevance of Keynesian Economics for Developing Countries
• Government Budget Constraint, Fiscal Policy and Fiscal Deficit
• Open Economy Macroeconomics : Balance of Payments,
Foreign Exchange Rate and International Economic Linkages
• Theories of Economic Growth : Harrod-Domar Model;
Neoclassical Growth Theory; New Theory of Growth, and
Lewis’ Model of a Labour-Surplus Economy
• Nature of Unemployment and Development Strategies for
Labour-Surplus Developing Countries.
• Bhagwati Vs. Sen : Debate on Growth and Distribution
Dr. H.L. AHUJA
M.A. Ph.D. (DSE)
Formerly, Senior Reader
Department of Economics
Zakir Husain Delhi College
University of Delhi
Delhi
THOROUGHLY REVISED TWENTIETH EDITION
S Chand And Company Limited
(ISO 9001 Certified Company)
, S Chand And Company Limited
(ISO 9001 Certified Company)
Head Office: Block B-1, House No. D-1, Ground Floor, Mohan Co-operative Industrial Estate,
New Delhi – 110 044 | Phone: 011-66672000
Registered Office: A-27, 2nd Floor, Mohan Co-operative Industrial Estate, New Delhi – 110 044
Phone: 011-49731800
www.schandpublishing.com; e-mail:
Branches
Ahmedabad : Ph: 27542369, 27541965;
Bengaluru : Ph: 22354008, 22268048;
Bhopal : Ph: 4274723, 4209587;
Bhubaneshwar : Ph: 2951580;
Chennai : Ph: 23632120;
Guwahati : Ph: 2738811, 2735640;
Hyderabad : Ph: 40186018;
Jaipur : Ph: 2291317, 2291318;
Jalandhar : Ph: 4645630;
Kochi : Ph: 2576207, 2576208;
Kolkata : Ph: 23357458, 23353914;
Lucknow : Ph: 4003633;
Mumbai : Ph: 25000297;
Nagpur : Ph: 2250230;
Patna : Ph: 2260011;
Ranchi : Ph: 2361178;
Sahibabad : Ph: 2771238;
© S Chand And Company Limited, 1986
All rights reserved. No part of this publication may be reproduced or copied in any material form (including
photocopying or storing it in any medium in form of graphics, electronic or mechanical means and whether or not
transient or incidental to some other use of this publication) without written permission of the copyright owner. Any
breach of this will entail legal action and prosecution without further notice.
Jurisdiction: All disputes with respect to this publication shall be subject to the jurisdiction of the Courts, Tribunals
and Forums of New Delhi, India only.
First Edition 1986
Subsequent Editions and Reprints 1988, 90, 94, 96, 98, 99, 2001, 2002, 2004 (Twice), 2006, 2007, 2008 (Twice),
2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017 (Twice), 2018 (Twice), 2019
LPSPE 2019
LPSPE 2020
ISBN: 978-93-5283-732-8 Product Code: H5MAC41ECON10ENAT19L
, Dedicated to My Guru
Dr. J.D. Varma
with Reverence and Affection
THEORY AND POLICY
(For Postgraduate (M.A., M.Com.) and B.A. (Hons.) Students of Economics,
Commerce, Business Management and Competitive Examinations)
ADVANCED ANALYSIS OF
• Income and Employment Determination
• Theories of Consumption Function and Investment
• Monetary Demand & Supply
• Money, Prices and Inflation
• Theories of Business Cycles and Stabilisation Policies
• New Classical Macroeconomics based on Rational Expectations
• New Keynesian Economics
• Relevance of Keynesian Economics for Developing Countries
• Government Budget Constraint, Fiscal Policy and Fiscal Deficit
• Open Economy Macroeconomics : Balance of Payments,
Foreign Exchange Rate and International Economic Linkages
• Theories of Economic Growth : Harrod-Domar Model;
Neoclassical Growth Theory; New Theory of Growth, and
Lewis’ Model of a Labour-Surplus Economy
• Nature of Unemployment and Development Strategies for
Labour-Surplus Developing Countries.
• Bhagwati Vs. Sen : Debate on Growth and Distribution
Dr. H.L. AHUJA
M.A. Ph.D. (DSE)
Formerly, Senior Reader
Department of Economics
Zakir Husain Delhi College
University of Delhi
Delhi
THOROUGHLY REVISED TWENTIETH EDITION
S Chand And Company Limited
(ISO 9001 Certified Company)
, S Chand And Company Limited
(ISO 9001 Certified Company)
Head Office: Block B-1, House No. D-1, Ground Floor, Mohan Co-operative Industrial Estate,
New Delhi – 110 044 | Phone: 011-66672000
Registered Office: A-27, 2nd Floor, Mohan Co-operative Industrial Estate, New Delhi – 110 044
Phone: 011-49731800
www.schandpublishing.com; e-mail:
Branches
Ahmedabad : Ph: 27542369, 27541965;
Bengaluru : Ph: 22354008, 22268048;
Bhopal : Ph: 4274723, 4209587;
Bhubaneshwar : Ph: 2951580;
Chennai : Ph: 23632120;
Guwahati : Ph: 2738811, 2735640;
Hyderabad : Ph: 40186018;
Jaipur : Ph: 2291317, 2291318;
Jalandhar : Ph: 4645630;
Kochi : Ph: 2576207, 2576208;
Kolkata : Ph: 23357458, 23353914;
Lucknow : Ph: 4003633;
Mumbai : Ph: 25000297;
Nagpur : Ph: 2250230;
Patna : Ph: 2260011;
Ranchi : Ph: 2361178;
Sahibabad : Ph: 2771238;
© S Chand And Company Limited, 1986
All rights reserved. No part of this publication may be reproduced or copied in any material form (including
photocopying or storing it in any medium in form of graphics, electronic or mechanical means and whether or not
transient or incidental to some other use of this publication) without written permission of the copyright owner. Any
breach of this will entail legal action and prosecution without further notice.
Jurisdiction: All disputes with respect to this publication shall be subject to the jurisdiction of the Courts, Tribunals
and Forums of New Delhi, India only.
First Edition 1986
Subsequent Editions and Reprints 1988, 90, 94, 96, 98, 99, 2001, 2002, 2004 (Twice), 2006, 2007, 2008 (Twice),
2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017 (Twice), 2018 (Twice), 2019
LPSPE 2019
LPSPE 2020
ISBN: 978-93-5283-732-8 Product Code: H5MAC41ECON10ENAT19L
, Dedicated to My Guru
Dr. J.D. Varma
with Reverence and Affection
