You are viewing all question papers of macro economics (BBA 2nd)

Syllabus

 Macroeconomics: Meaning, nature and scope. Basic concepts used: Stock and flow variables, partial and

general equilibrium, static and dynamic analysis. Circular flow of income and expenditure. National income:

Concepts, measurement , difficulties and importance

Unit-II (12 Hrs.)

Theory of Income and employment: Classical theory of output and employment, Say‟s law of markets.

Keynsian theory of income determination. Consumption Function: Meaning, determinants and importance.

Theory of consumption: Absolute income hypothesis, Relative income hypothesis, Permanent income

hypothesis, life Cycle Hypothesis.

Unit-III (12 Hrs.)

Theory of Investment: Types of investment, determinants of investment, marginal efficiency of capital, net

present value, internal rate of return, Interest rate determination: Classical, Neo-classical and Keynesian

theories. Theory of Multiplier: Static and dynamic multiplier, tax multiplier, foreign trade multiplier, balanced

budget multiplier, leakages from multiplier,Importance and limitations

Unit-IV (12 Hrs.)

Inflation: Meaning, types, and theories. Stabilization policies: Monetary and fiscal policies. Money: Its

function and role: Quantity theory of money, Fisher and Cambridge equations. Keynes views about money and

prices.

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