Macroeconomics – I (Sem 3, Tamil Nadu)

The book “MACROECONOMICS-I”, an introductory textbook on Macroeconomics, covers the syllabus of the course MACROECONOMICS-I prescribed by the Tamil Nadu State Council for Higher Education (TANSCHE) for
U.G. Economics Programme. This book fulfils the requirements of the average students.

Distinct Features of the Book –

• Written in simple and easily understandable language.
• Precise and concise description of the principles, laws and theories.
• Exercises in the form of multiple choice type questions including UGC – NET questions given at the end of the respective chapters to enable the students for preparing for the UGC Test for Junior Research Fellowship (JRF) and National Eligibility Test (NET) / State Level Eligibility Test (SET) for Lectureship.

Contents –

1. NATIONAL INCOME
• Meaning of National Income • Definitions of National Income • National Income Concepts • Gross National Product (GNP) • Net National Product (NNP) • National Income at Factor Cost • Gross Domestic Product (GDP) • GDP at Market Price • GDP at Factor Cost • Net Domestic Product (NDP)• Potential GDP • Nominal GDP Real GDP • GDP Gap • GDP Deflator • Green GDP • Green NNP • Personal Income • Disposable Income • Per Capita Income • National Income Measurement • Expenditure Method • Income Method • Value Added Method • National Income Accounting • Happiness Index • Circular Flow of Income and Expenditure
2. FULL EMPLOYMENT: CLASSICAL THEORY
• Introduction • Meaning of Full Employment • Definitions of Full Employment • Aggregate Demand • Aggregate Supply • Assumptions of Classical Theory • Say’s Law • Wage and Price Flexibility • Employment and Output Determination in Classical Model • Three Ranges in Aggregate Supply (AS) Curve
3. UNDEREMPLOYMENT: KEYNESIAN THEORY
• Keynes’ Critique of Classical Theory • Involuntary Unemployment • Wage Rigidity • Underemployment Equilibrium • Effective Demand • Components • Liquidity Preference • Consumption Function • Meaning • Attributes • Saving • Investment • Marginal Efficiency of Capital • Multiplier
4. THEORIES OF CONSUMPTION
• Keynesian Absolute Income Hypothesis • Duesenberry’s Relative Income Hypothesis • Friedman’s Permanent Income Hypothesis • Modigliani’s Life Cycle Hypothesis
5. INFLATION
• Meaning of Inflation • Definitions of Inflation • Features of Inflation • Related Terms of Inflation Types of Inflation • Causes for inflation • Effects of Inflation • Control of Inflation • Calculation of Inflation Rate • Consumer Price Index • Wholesale Price Index • Producer Price Index • Headline Inflation • Core Inflation • Phillips Curve