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EC213 Macroeconomics

Second Year B.Comm

Basic concepts of National Income Accounting. Aggregate Demand and Supply. Equilibrium and disequilibrium. Saving-Investment relationship. Consumption function. The multiplier. The determinants of investment. Liquidity preferences and theory of interest. The principle of acceleration. The Government sector and National Income and Output. Foreign trade and the national income. Balance of payments. Exchange rates. Incomes, output, employment, prices. The classical theory. Keynesian and Post-Keynesian theories. General Price Level. Index numbers. The inflationary process. Economic growth. Investment and employment. Cyclical fluctuations. Monetary and fiscal policies.

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