English Medium

Punjabi Medium

Introduction to Macro Economics

Circular Flow of Income

National Income & related aggregates

Measurement of National Income final

AD&AS in Macro Economy.

Income Employment Output

Investment Multiplier 7 its Working

Problems of Deficient and Excess Demand

Measures to Correct Deficient & Excess Demand

Money Meaning, Evolution &Functions

Banking_Commercial &Central Bank

Govt budget &Economy

Foreign Exchange

Balance of Payment

Ch1 MACROECONOMICS AND SOME BASIC CONCEPTS: This chapter serves as an introduction to macroeconomics, focusing on its scope and fundamental concepts. It explores the difference between microeconomics and macroeconomics and explains why the latter is concerned with the economy as a whole. The chapter introduces key macroeconomic variables, such as national income, employment, inflation, and economic growth. It discusses the significance of aggregate demand and aggregate supply in analyzing overall economic performance. Moreover, it covers essential macroeconomic goals, including full employment, price stability, and sustainable economic growth.

Ch2 CIRCULAR FLOW OF INCOME: This chapter explores the circular flow of income and expenditure, which depicts the flow of money and goods between households, firms, the government, and the foreign sector in an economy. It explains the role of households as consumers and firms as producers and sellers of goods and services. The chapter discusses how households receive income from firms in the form of wages, rent, interest, and profits, while firms receive expenditure from households for their products. It also introduces leakages and injections in the circular flow, such as savings, taxes, imports, and exports, and their impact on economic activity.

Ch3 NATIONAL INCOME AND RELATED AGGREGATES: This chapter delves into the concept of national income and its measurement. It explains how national income is a key macroeconomic indicator used to assess the economic performance of a country. The chapter discusses various approaches to calculating national income, including the income, expenditure, and value-added methods. It covers related aggregates, such as gross domestic product (GDP), gross national product (GNP), net national product (NNP), and national disposable income. It also explores the significance of these measures in understanding the level of economic activity and overall well-being in a country.

Ch4 MEASUREMENT OF NATIONAL INCOME: This chapter focuses on the methods and challenges involved in measuring national income. It explains the process of data collection, estimation, and adjustments required to arrive at accurate and reliable national income figures. The chapter discusses the importance of double counting adjustments, factor cost adjustments, and depreciation considerations in the measurement of national income. It addresses the limitations of national income accounting and the use of price indices to adjust for inflation in GDP calculations.

Ch5 MONEY FUNCTIONS AND MONEY SUPPLY: This chapter explores the functions of money in an economy and its role as a medium of exchange, unit of account, and store of value. It explains the significance of money in facilitating transactions and supporting economic activity. The chapter discusses the components of money supply, including currency (coins and banknotes) and demand deposits held with banks. It also covers the role of the central bank in controlling the money supply through monetary policy tools.

Ch6 BANKING: THE CENTRAL BANK AND COMMERCIAL BANKS: This chapter delves into the banking system, focusing on the roles of the central bank and commercial banks in the economy. It explains the functions of commercial banks, such as accepting deposits, granting loans, and providing various financial services. The chapter discusses the central bank's role as the monetary authority, responsible for formulating and implementing monetary policy to control the money supply and interest rates. It also explores the central bank's regulatory and supervisory functions to maintain financial stability in the economy.

Ch7 AGGREGATE DEMAND AND AGGREGATE SUPPLY: This chapter focuses on aggregate demand and aggregate supply, which are essential concepts in macroeconomics. It explains aggregate demand as the total demand for goods and services in an economy at different price levels. The chapter discusses the components of aggregate demand, including consumption, investment, government spending, and net exports. It also covers aggregate supply as the total output of goods and services produced in the economy. The chapter examines the factors influencing aggregate demand and aggregate supply and their implications for price levels and economic growth.

Ch8 SHORT-RUN EQUILIBRIUM OUTPUT INVESTMENT MULTIPLIER: This chapter explores short-run equilibrium output and the concept of the investment multiplier. It explains how the multiplier effect occurs when an initial change in investment leads to a larger overall change in output and income. The chapter discusses the relationship between investment, income, and aggregate demand, as well as the implications of the multiplier effect on economic fluctuations. It also examines the limitations and assumptions associated with the investment multiplier concept.

Ch9 EXCESS AND DEFICIENT DEMAND: This chapter focuses on the concept of excess and deficient demand in an economy. It explains excess demand as a situation where aggregate demand exceeds aggregate supply, leading to inflationary pressures. Conversely, deficient demand occurs when aggregate demand is lower than aggregate supply, resulting in unemployment and recessionary conditions. The chapter discusses the role of government policies, such as fiscal and monetary measures, in managing excess and deficient demand to achieve economic stability.

Ch10 GOVERNMENT BUDGET AND THE ECONOMY: This chapter delves into the government budget and its impact on the economy. It explains the components of the government budget, including revenue, expenditure, and fiscal deficit. The chapter discusses the role of fiscal policy in influencing aggregate demand and economic growth. It explores the effects of government spending, taxation, and borrowing on private consumption, investment, and overall economic activity. The chapter also addresses the importance of budgetary discipline and fiscal sustainability in achieving macroeconomic stability.

Ch11 BALANCE OF PAYMENTS: This chapter focuses on the balance of payments, which records all transactions between a country and the rest of the world. It explains the components of the balance of payments, including the current account, capital account, and financial account. The chapter discusses the significance of trade balance, current account balance, and balance of payments equilibrium in assessing a country's international economic position. It also explores the factors influencing the balance of payments, such as exports, imports, foreign direct investment, and exchange rates.

Ch12 FOREIGN EXCHANGE RATE: This chapter examines the foreign exchange rate, which determines the value of one currency in terms of another. It explains the concept of exchange rate determination and the factors influencing exchange rate movements, such as interest rates, inflation, and trade balances. The chapter discusses the types of exchange rate systems, including fixed exchange rates and floating exchange rates, and their implications for international trade and capital flows. It also explores the role of the central bank in managing exchange rates through exchange rate intervention and monetary policy.