UNIT-I
Nature and scope of macroeconomics, circular flow of income; national income – alternative
concepts of income and their interrelationship, measurement of national income, stock and flow
variables, aggregate demand, supply and macroeconomic equilibrium, features and phases of
business cycle.
UNIT-II
Macro analysis of consumer behaviour, income consumption relationship, absolute, relative and
permanent income hypothesis; Concept of Investment & its types, Investment function.
UNIT-III
Fiscal policy: Objectives, Instruments and its role in growth and price stability, Public debt: nature
and management; business taxation – types, rationale and incidence.
UNIT-IV
Money supply measures; credit creation process and money multiplier, instruments of monetary
policy; promotional and regulatory role of central bank; Inflation – types, causes, effects and
control measures.
SUGGESTED READINGS: (Latest Edition of books will be followed)
1. D’souza, Errol, Macroeconomics, Pearson Education, New Delhi
2. Edward Shapiro, Macroeconomic Analysis, Galgotia, New Delhi
3. Gupta S.B., Monetary Economics: Theory, Policy and Institutions, S. Chand, New Delhi
4. Gupta, G.S., Macroeconomics – Theory and Applications, Tata McGraw Hill, New Delhi
5. Vaish, M.C., Macroeconomic Theory, Vikas Publications, New Delhi