ECONOMICS FOR MANAGERS
UNIT- 5
Macro Economic Indicators
National income- Concept- Methods of
measurement- Consumption- Saving and
Investment Function- Balance of payment- Fiscal
and Monetary policy-Inflation- Deflation-
Multiplier and Accelerator- Business cycles- Phases
of trade cycle. Profit concept and theories of profits.
Risk & Uncertainty bearing theory. Employment
determination classical theory, Neo-classical
theory.
, National Income
• Macro Economics is concerned with the
utilization of the country’s resource for
development and growth of the nation.
• National Income gives information about the
nation’s productive capacity and economic
strength.
• National Income study will reveal the extent of
utilization of a country’s resources and the
extent of unemployment.
, Definition of National Income
• According to Marshall defined national
income thus: “The labour and capital resources
of a country acting on its natural resources
produce annually a certain net aggregate of
commodities, material and immaterial
including services of all kinds. This is the true
net annual income or revenue of the country or
the national dividend”.
, National Income Accounts
• The basic quantities or aggregates in social
accounting are:
1.Gross National Product (GNP)
2.Net National Product (NNP)
3.National Income (NI)
4.Personal Income (PI)
5.Disposable Personal Income (DPI)
UNIT- 5
Macro Economic Indicators
National income- Concept- Methods of
measurement- Consumption- Saving and
Investment Function- Balance of payment- Fiscal
and Monetary policy-Inflation- Deflation-
Multiplier and Accelerator- Business cycles- Phases
of trade cycle. Profit concept and theories of profits.
Risk & Uncertainty bearing theory. Employment
determination classical theory, Neo-classical
theory.
, National Income
• Macro Economics is concerned with the
utilization of the country’s resource for
development and growth of the nation.
• National Income gives information about the
nation’s productive capacity and economic
strength.
• National Income study will reveal the extent of
utilization of a country’s resources and the
extent of unemployment.
, Definition of National Income
• According to Marshall defined national
income thus: “The labour and capital resources
of a country acting on its natural resources
produce annually a certain net aggregate of
commodities, material and immaterial
including services of all kinds. This is the true
net annual income or revenue of the country or
the national dividend”.
, National Income Accounts
• The basic quantities or aggregates in social
accounting are:
1.Gross National Product (GNP)
2.Net National Product (NNP)
3.National Income (NI)
4.Personal Income (PI)
5.Disposable Personal Income (DPI)
