Macroeconomics Theory 1 EET 101 Pdf notes

Macroeconomics Theory 1 EET 101 Pdf notes

COURSE OUTLINE

  1. INTRODUCTION
  • Definition of key terms
  • Macroeconomic models
  • Importance of Macroeconomics
  • Major goals of macroeconomic policy
  • Limitations of macroeconomics
  1. NATIONAL INCOME, OUTPUT AND EXPENDITURE
  • The circular flow of income
  • Three approaches to measurement of National income
  • GDP and its related concepts
  • Difficulties in measuring National income
  • Factors determining size of an economy’s National Income
  • Uses of National income accounting
  • National income and social welfare
  1. CONSUMPTION, SAVINGS AND INVESTMENT
  • The consumption function
  • The savings function
  • Theories of Consumption
  • Determinants of Consumption Spending
  • Types of Investments
  • Determinants of Investment
  • Theories of investment
  1. THE KEYNESSIAN MODEL OF INCOME DETERMINATION

    (EQUILIBRIUM INCOME DETERMINATION)

  • Equilibrium in the goods market
  • The S = I equilibrium condition of the goods market
  • The IS Equation and curve
  • Dis-equilibrium Income
  • The Multiplier concept
  • Paradox of Thrift
  • Inflationary and Deflationary Gaps3
  1. THE MONEY MARKET
  • Money and its Basic Functions
  • Properties of Money
  • Creation of Money
  • Financial Institutions
  • Demand for Money
  • Money supply
  • Equilibrium in the money market
  • General equilibrium
  • Open economy and the extended IS-LM model
  1. FOREIGN EXCHANGE MARKETS
  • Definitions
  • Exchange rate regimes
  • The J – Curve Phenomenon
  • Methods used to correct trade deficit
  • Effects of Devaluation of a Currency
  1. UNEMPLOYMENT AND INFLATION

Unemployment

  • Definition
  • Types of unemployment
  • Causes of Unemployment
  • Policies for curing Unemployment

Inflation

  • Definitions
  • Forms of Inflation
  • Types of Inflation
  • Measurement of Inflation
  • Causes of Inflation
  • Effects of Inflation
  • Remedies of Inflation

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