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UNIT – I Introduction to Macroeconomic issues and National
Income Accounting Basic issues studied in macroeconomics, measurements of gross domestic product, income, expenditure and the circular flow; real versus nominal GDP; price indices; national income accounting for open economy, balance of payments accounts; cur- rent, capital and financial accounts. |
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UNIT – II Money Functions of money; quantity theory of money; demand
for money; determination of money supply and demand; credit creation; tools
of monetary policy. |
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UNIT – III Simple Theory of
Income Determination Classical and Keynesian systems; simple Keynesian model of income determination |
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UNIT – IV IS-LM Analysis and Aggregate Demand Derivations of the IS and LM curves; fiscal and monetary multipliers; derivation of aggregate demand |
