Advanced Macroeconomic Theory – I

·         National income – Aggregates

·         Circular flow of income

·         Measurement of National Income

·         Recent Changes in National Income Estimation in India,

·          National Income and Economic Welfare,

·         Flaws in conventional system of National Income Accounting,

Green Accounting

·      Keynes’ Psychological law of Consumption;

·      Short run and Long run consumption functions;

·      Kuznets’ Consumption Puzzle,

·      Irving Fisher and Inter-temporal Choice;

·      Consumption function  hypotheses–Absolute Income Hypothesis, Relative Income Hypothesis, Life-Cycle Hypothesis and Permanent Income Hypothesis 

·         Demand for Money – Classical and Keynesian Approach; Post Keynesian theories of demand for Money - Baumol, Tobin and Friedman.

·         Supply of Money - RBI’s approach to money supply, H theory of Money Supply

·         Interest Rate - Monetary Equilibrium & Rate of Interest, Interest Rate theories – Classical theory, Loanable Funds theory & Liquidity Preference theory.

·         Theory of Investment - Components of investment; Marginal efficiency of capital and Marginal efficiency of investment; Accelerator theory

·         Simple Classical Model –determination of equilibrium output and employment;

·         Say’s law of Market and Quantity Theory of Money;

·         Effect of - Changes in money supply, labour supply, labour demand and rigid wages - on the full employment equilibrium values;

·         Classical Model with savings and investment

Criticisms of the Classical model

·         Equilibrium in the Product Market – The aggregate demand and aggregate supply approach, Savings- Investment approach;

·         Multiplier-  Meaning & Working,

·         Concept of Static and Dynamic Multiplier

·          Government Expenditure Multiplier, Tax Multiplier, Balanced Budget Multiplier;

·          Keynesian Theory of Employment,

·         Complete Keynesian Model