Macro Economics
Guru Ghasidas Vishwavidyalaya · LL.B. Semester 5 · LAIETT6N
Unit I — Foundations of Macroeconomics
Origin, nature and scope of macroeconomics · Microeconomics vs Macroeconomics · Circular flow of income: Two-sector, Three-sector, Four-sector models · Key concepts: Stock and Flow; Static, Dynamic, and Comparative Static analysis · Equilibrium and Disequilibrium · Partial vs General Equilibrium analysis
Unit II — National Income and Public Finance
National Income · National income concepts: Gross/Net, Domestic/National, Market Price/Factor Cost · Aggregates: GDP, NDP, NNP, Personal and Disposable Income · Methods of measurement: Product, Income, and Expenditure approaches · Challenges in national income estimation in developing economies · Public Finance : · Nature and scope · Public vs Private finance · Principle of Maximum Social Advantage · Union Budget : · Classification: Revenue and Capital Budget · Budget preparation process and legal framework · Concepts of Budget Deficits: Fiscal, Revenue, and Primary · Highlights of the Latest Union Budget and its macroeconomic significance
Unit III — Money, Banking and Macroeconomic Thought
Money: Meaning, types, and functions · Quantity Theory of Money: Fisher and Cambridge approaches · Keynesian Theory of Demand for Money; Liquidity Preference and Liquidity Trap · Commercial Banks: Functions, Credit Creation, Money Multiplier · Central Bank: Functions and instruments of monetary control · Macroeconomic Models: · Classical Theory: Say’s Law, Full Employment, Aggregate Supply · Keynesian Model: Aggregate Demand, Consumption Function, Investment Multiplier, Paradox of Thrift
Unit IV — Inflation, Unemployment and Economic Stabilization
Inflation: Meaning, causes (Demand-pull and Cost-push), and effects · Inflationary Gap and Stagflation · Unemployment: Types, Natural Rate of Unemployment · Phillips Curve: Relationship between inflation and unemployment · Business Cycles: Phases, Types, and Theories · Economic Stabilization Policies : · Monetary Policy: Tools, objectives, and recent trends · Fiscal Policy: Role in managing aggregate demand and public expenditure · Legal framework and institutional context (RBI, Finance Ministry)
Unit V — Balance of Payments and Foreign Exchange Market
Balance of Payments (BoP): Meaning, structure, and components · Causes and consequences of disequilibrium in BoP · Exchange Rate Regimes: Fixed vs Floating · Determination of Exchange Rates under different regimes · Key Currency Concepts: · Depreciation and Appreciation · Devaluation and Revaluation · Institutional overview: Role of RBI, FEMA, IMF, and WTO in external sector management