Here’s a detailed breakdown of topics based on the syllabus for Macro Economics (B.
Com, Tax Planning and Management, II Semester):
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UNIT - I
1. Introduction to Macro Economics and Its Importance
Meaning and scope of macroeconomics.
Difference between microeconomics and macroeconomics.
Importance of macroeconomics in policy-making and economic analysis.
2. National Income
Concepts of National Income:
Gross Domestic Product (GDP).
Gross National Product (GNP).
Net National Product (NNP).
Personal Income (PI).
Disposable Income (DI).
Per Capita Income.
Methods of Measuring National Income:
Production Method: Calculating GDP by summing the value of goods and services.
Income Method: Summing all incomes earned in an economy.
Expenditure Method: Adding all expenditures made in the economy.
Problems of Measurement:
Existence of non-monetary transactions.
Underdeveloped infrastructure in underdeveloped countries.
Difficulty in valuing unpaid services, informal sectors, etc.
3. Classical Theory of Employment
Assumptions of classical theory.
Say’s Law of Markets: "Supply creates its own demand."
Wage-price flexibility and its role in ensuring full employment.
Criticism of classical theory.
4. Keynesian Theory of Income, Output, and Employment
Key concepts:
Aggregate Demand (AD).
Aggregate Supply (AS).
Effective Demand and equilibrium output.
Keynes’ criticism of classical theory.
Role of government in managing aggregate demand.
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UNIT - II
1. Consumption Function
Meaning and significance of consumption function.
Difference between Average Propensity to Consume (APC) and Marginal Propensity to Consume (MPC).
Psychological law of consumption (Keynes):
Propensity to consume increases with income, but at a diminishing rate.
2. Multiplier
Definition and concept of the multiplier.
Formula and significance: Multiplier = 1 / (1 - MPC).
Operation of the multiplier in increasing income and output.
Limitations:
Time lags.
Leakage through savings, imports, and taxation.
3. Investment Function
Meaning and types of investment:
Induced investment (based on income changes).
Autonomous investment (independent of income changes).
Marginal Efficiency of Capital (MEC):
Concept and importance.
Relation between interest rate and MEC.
Limitations and factors affecting investment decisions.
4. Inflation
Definition and causes of inflation:
Demand-pull inflation: Excess demand over supply.
Cost-push inflation: Rising input costs (wages, raw materials).
Types of inflation:
Creeping, walking, galloping, hyperinflation.
Effects of inflation on various sectors (economy, business, consumers).
Anti-inflationary measures: Monetary and fiscal policies.
5. Trade Cycles
Meaning and significance of trade cycles.
Phases of trade cycles:
Boom: Economic prosperity and high demand.
Recession: Decline in output and investment.
Depression: Severe downturn in economic activity.
Recovery: Gradual improvement leading back to boom.
Causes and consequences of trade cycles.
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This detailed list covers all the topics mentioned in your syllabus. Let me know if you need help with specific sections, notes, or explanations!
