Macroeconomics: Theory and Policy

Contents

List of Figures

Preface

UNIT I INTRODUCTION

1 An Introduction to Macroeconomics

Macroeconomics and Microeconomics

Background of Macroeconomics

Need to Study Macroeconomics

Concepts in Macroeconomics

Summary

Review Questions

2 The Circular Flow of Income and Expenditure

Introduction

The Circular Flow of Income in a Two Sector Economy

The Circular Flow in a Three Sector Economy

The Circular Flow of Income in a Four Sector Economy

Summary

Review Questions

UNIT II NATIONAL INCOME AND ITS DETERMINATION

3 National Income

Introduction

National Income Aggregates

Measurement of National Income

Summary

Review Questions

4 The Classical Model of Income Determination

Introduction

Say’s Law

Output and Employment in the Classical Model

A Criticism ...