- Background of Macro Economics : 1.1 Macro Economics – a) Definition of Macro Economics, b) Nature of Macro Economics, c) Scope of Macro Economics, d) Importance of Macro Economics, e) Limitations of Macro Economics, 1.2 Development in Macro Economics, 1.3 Paradox of Macro Economics
- Basic Concepts of National Income : 2.1 Various Concepts of National Income – a) Meaning of National Income, b) Gross Domestic Product (GDP) at market price, c) Net National Product (NNP) at market price, d) Gross National product (GNP) at market price, e) Disposable Income (DI) at market price, 2.2 Circular Flow of Income – a) Meaning, b) Circular flow of Income in two sector economy, c) Circular flow of Income in three sector economy, d) Circular flow of Income in four sector open economy, 2.3 Withdrawals & Injections in National Income
- The Classical Theory of Employment & Output : 3.1 Say’s law of market & its implications, 3.2 Implications of the classical theory, 3.3 Criticism by Keynes on Classical theory
- Modern Keynesian approach to the equilibrium of the economy : 4.1 Principle of effective demand, 4.2 Full employment & unemployment equilibrium, 4.3 Inflationary & deflationary gap, 4.4 Saving-Investment approach in two sector economy, 4.5 Paradox of thrift
- Consumption & Saving Functions : 5.1 Consumption function : meaning & importance, 5.2 Determinants of consumption function, 5.3 Concept of Average propensity to consume (APC), Marginal propensity to Consume (MPC), Average propensity to save (APS) & Marginal propensity to Save (MPS), 5.4 Keynes psychological law of consumption, 5.5 Investment multiplier : Concept, Process of multiplier, Importance & Limitations
- Investment Functions : 6.1 Concept of Capital & Investment, 6.2 Gross & Net investment, Autonomous & Induced investment, 6.3 Marginal efficiency of Capital (MEC), 6.3.1 Rate of Interest, Capital Accumulation, 6.4 The acceleration theory of Investment
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