Macroeconomic Theory

• Basic terms and concepts explained with great clarity
• Completely revamped chapters with updated information
• Two new chapters - 'Taxation and Public Debt' and the 'Foreign Exchange Rate'
• Separate name and subject indexes at the end of the book
• Simple language to facilitate understanding of difficult concepts
• Examination-oriented review questions at the end of each chapter for the readers to assess their knowledge

Part One: Introduction: 1. The Nature and Purpose of Economic Theory, 2. The Development and Types of Economic Theory, 3. The Development and Types of Macro Economics, 4. Economic Concept, Part Two: Macroeconomic Accounting: 5. Output (Income) and Expenditure Flows in a Simple Economy, 6. National Income and Product, 7. Sector Accounts, 8. The Measurement of National Product, 9. National Income and Social Welfare, 10. Problems in The Measurement of National Product, Part Three: Macroeconomic Theory: 11. Output and Employment, 12. The Aggregate Demand and Aggregate Supply, 13. The Classical Theory of Income, 14. Equilibrium Income and Output: Two-Sector Economy, 15. Change in Income and Output: Investment Multiplier, 16. Complex Multipliers, 17. Foreign Trade Multiplier, 18. Income-Consumption Relationship, 19. Other Determinants of Consumption, 20. Pigou Effect, 21. Investment Demand, 22. Saving Supply, 23. Equilibrium of Economy's Real and Monetary Sectors, 24. The Keynesian Theory of Income, Output and Employment, 25. Keynes Versus The Classics, 26. Keynesian Economics and The Developing Countries, 27. Acceleration Principle, Part Four: Money, Interest and Prices: 28. The Nature and Functions of Money, 29. The Supply of Money, 30. Money and Interest, 31. Theories of Interest, 32. The Natural Rate and The Market Rate of Interest, 33. The Term Structure of Interest Rates, 34. The Quantity Theory of Money, 35. Keynesianism Versus Monetarism, 36. Milton Friedman's Quantity Theory of Money, 37. Keynes's Theory of Money and Prices, 38. Inflation, Part Five: Macroeconomic Policy, Foreign Exchange Rate and Banking: 39. Macroeconomic Policy, 40. Monetary Policy, 41. Monetary Policy and Inflation Targetting, 42. Fiscal Policy, 43. Taxation and Public Debt, 44. Foreign Exchange Rate, 45. Evolution of Banking, 46. Credit Creation, 47. Control of Credit, 48. Central Bank, 49. The Indian Monetary Policy, Part Six: Trade Cycle and Economic Growth: 50. Theories of Trade Cycle, 51. Control of Trade Cycle, 52. Economic Growth, 53. Theories of Economic Growth, 54. The Supply-Side Economics • Name Index • Subject Index