Macro Economics

The Macro Economics book has been published strictly according to the syllabus of B.Com. Semester V of Lucknow University, Lucknow.

This book is the outcome of my experience of three and a half decades of the teaching of Macro-economics to graduate and post-graduate students. The concepts are articulated in such a manner that the learners would learn them quickly and easily. The book is in simple language in detail and presented in a lucid style. While writing this book, it has been especially kept in mind that complicated and complex concepts are made into pleasurable reading and learning experience which shall truly help the students in getting complete command over the subject. An attempt has been made to keep the writing style simple and clearly understandable for readers. Though the book has been presented in the traditional format, the analysis covers all important recent developments.

Macro Economics book For B.Com. Semester V of Lucknow University

UNIT I: Concept and scope of Macro Economics; Macroeconomic Paradoxes: wage-employment paradox and the paradox of thrift, The Circular flow of income and expenditure. The Analysis and Measurement of Economic Activity–National Income Accounting: Concept and Definitions of National Income. Various components of National Income, Methods of Measurement of National Income and Welfare.

Unit II: Classical Macroeconomic Models—Say’s Law, Quantity Theory of Money, Wage-Price Flexibility, and Full employment. Aggregate Expenditure–Consumption Function: Concepts of propensities of consumption and saving. Absolute Income Hypothesis, Relative Income Hypothesis; Consumption Puzzle, and Permanent Consumption Hypothesis. Investment Function: Types, Marginal Efficiency of Capital (MEC), and Marginal Efficiency of Investment (MEI).

Unit III: The Concept of Multiplier; National Income Determination in an Open Economy IS-LM Analysis–Derivation of IS and LM Functions; Joint determination of National Income and rate of Interest and Shift and IS and LM Curves.

Unit IV: Theory of Inflation–Meaning, types and measurement, Demand-Pull, and Cost-Push Inflation. The Philips Curve, Effects of Inflation, Anti-Inflation Policies – Monetary and Fiscal Policies. Business Cycles – concept, types, and phases; Keynes, Hawtrey, Hicks Models.

Macro Economics Book Contents

1. Concept and Scope of Macro Economics
2. The Circular Flow of Income and Expenditure
3. National Income Accounting (Social Accounting)
4. National Income (Concept, Components, and Measurement)
5. National Income and Economic Welfare
6. Classical Macro-Economic Model’S (Say’S Law, Wage-Price Flexibility and Full Employment)
7. Keynesian Theory of Employment
8. Quantity Theory of Money and Keynes’S Theory of Money and Prices
9. Consumption Function
10. Theories of Consumption Function
11. Investment Function and Marginal Efficiency of Capital
12. The Concept of Multiplier
13. National Income Determination in an Open Economy
14. IS-LM Analysis
15. Theory of Inflation
16. Measurement of Inflation: Price Index Numbers
17. he Principle of Acceleration and The Super Multiplier
18. Business Cycles