Macro Economics

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The primary objective of this curriculum is to provide students with a clear understanding of how these components influence a nation’s economy. It aims to familiarize them with diverse economic...

Name : Macro Economics
Vendor : Prashant Publication
Type : S.Y.B.COM. | SEM - III
Manufacturing : 2026 / 04 / 13
Barcode : 9788199249639

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The primary objective of this curriculum is to provide students with a clear understanding of how these components influence a nation’s economy. It aims to familiarize them with diverse economic concepts, help them comprehend the functioning of the economy, and enhance their ability to make informed economic decisions.
We are delighted to present this textbook and reference guide for Macroeconomics Semester-III. The book offers a detailed exposition of macroeconomics based on the prescribed curriculum and relevant reference materials. We have made every effort to present the concepts in simple and accessible language to enhance understanding for both students and researchers. Each topic is systematically and comprehensively explained, incorporating the latest updated information, relevant tables, lists, and diagrams wherever necessary.

In writing this book, we have diligently referred to the recommended books suggested by the Board of Studies in Economics. Additionally, we have consulted research papers by various experts, Open University materials, and reliable online sources. To aid in exam preparation, objective multiple-choice questions, aligned with the university’s evaluation pattern, are included at the end of each chapter. We are confident that this book will be beneficial to students across all universities.

1. Introduction of Macro Economics...................................7
1.1 Origin of Macro Economics.
1.2 Principles of Macro Economics: Maximum Production, Responsible Consumption and Equal Distribution.
1.3 Macro-economic variables and concepts: Growth, Employment/Self Employment/Unemployment, Inflation Meaning, Concept of Wholesale Price.
1.4 Index and Consumer Price Index (WPI and CPI): Consumption, Savings and Investment, Foreign Trade (Export and Import).
1.5 Role of Macro-economists: Forecasting, Analysis, Research and Data Collection.

2. National Income.............................................71
2.1 Concepts of GDP,GNP,NDP, NNP, National Income Disposable Income.
2.2 Real and Nominal GDP/GNP:GDP Deflator
2.3 Measurement of National Income: Three Methods (Value added ,Income and Expenditure)
2.4 Circular Flow of National Income: Three-sector model (including government &taxation), four-sector model(Export and Import)
2.5 Difficulties Measurement of National Income

3. Keynesian Model of Income Determination............114
3.1 Introduction to Simple Keynesian Model
3.2 Consumption and Saving Function: APC and MPC, APS and MPS, Factors influencing consumption, Alternate theories of Consumption (Life Cycle, Permanent Income and Kuznets), Shifts in aggregate spending and the Multiplier 3.3 Investment Demand (ID): Meaning and types of investment (Capital stock), Keynesian MEC/Rate of interest and ID
3.4 Aggregate Demand and Supply Equilibrium

4. Business Cycle.......................................................183
4.1 Phases of Business Cycle
4.2 Features of Business/Trade Cycle
4.3 Theories of Business Cycle: Hawtrey’s Theory of Business Cycle, Low/under consumption theory of Keynes, Samuelson’s theory of Business Cycle, Hicks Theory of Business Cycle
4.4 Real Business Cycle (RBC)

References.............................................................................231