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Contents ?FOREWORDiii1. Emergence of Context of the Present Book of Macroeconomics52. NATIONAL INCOME Some Basic Concepts of Circular Flow of Income and Methods ofCalculating National Product or Value Added Some Macroeconomic Goods and GDP and Welfare273. MONEY AND Functions of Demand for Transaction Speculative The Supply of Definitions: Narrow and Broad Creation by the Banking of Monetary Policy and theReserve Bank of India434. INCOME Ex Ante and Ex Movement Along a Curve Versus Shift of a The Short Run Fixed Price Analysis of the Product A Point on the Aggregate Demand of an Autonomous Change on EquilibriumDemand in the Product Multiplier Mechanism565. THE GOVERNMENT: FUNCTIONS AND Components of the Government Revenue Capital of Government Fiscal in Government in Debt716. OPEN ECONOMY The Balance of Surplus and The Foreign Exchange of the Exchange Exchange Exchange Exchange Rate Management:The International The Determination of Income in an Open Income Identity for an Open Output and the Trade Trade Deficits, Savings and Investment93 GLOSSARY98 Chapter 1 IntroductionIntroductionIntroductionIntr oductionIntroductionYou must have already been introduced to a study of basicmicroeconomics.
Macroeconomics tries to address situations facing the economy as a whole. Adam Smith , the founding father of modern economics, had suggested that if the buyers and sellers in each market take their decisions following only their own self-interest, economists will not need to think of the wealth and welfare of the country as a whole separately.
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