CONTENTS :
PART ONE-INTRODUCTION
1 The Nature and Scope of Macroeconomics 1
PART TWO-NATIONAL INCOME
2 National Income : Meaning and Measurement 11
3 Economic Welfare and National Income 28
4 National Income Accounting 33
5 The Circular Flow of Income 49
PART THREE-MACROECONOMIC THEORY
6 The Classical Theory of Employment 54
7 Say's Law of Market 62
8 The Principle of Effective Demand : Aggregate Demand and Aggregate Supply 65
9 The Consumption Function 71
10 Theory of the Consumption Function 80
11 The Investment Function 91
12 The Concept of Multiplier 101
D Complex Multipliers 110
14 Foreign Trade Multiplier 115
15 The Principle of Acceleration and the Super Multiplier 120
16 Some New Theories of Investment 128
17 The Saving Function 144
18 Saving and Investment Equality 149
19 The Model of National Income Determination 154
20 The Keynesian Theory of Income, Output and Employment: A Summary 161
21 The Classical Vs. Keynesian Models of Income and Employment 164
22 Unemployment and Full Employment 172
23 Applicability of Keynes's Theory to Underdeveloped Countries 175
PART FOUR-MONETARY THEORY
24 Money 180
25 Changes in the Value of Money : The Quantity Theory of Money and its Variants 189
26 The Keynesian Theory of Money and Prices 198
27 Friedman's Restatement of the Quantity Theory of Money 202
28 The Supply of Money 207
29 Credit Creation by Commercial Banks 217
30 Central Banking: Functions and Credit Control 222
31 The Monetarist Revolution 235
32 The Demand for Money 239
33 Theories of Interest Rate 252
34 Term Structure of Interest Rate 269
35 The Real Balance Effect and Pigou Effect 280
36 Wage-Price Flexibility and Full Employment 286
PART FIVE-INFLATION AND BUSINESS CYCLES
37 Inflation and Deflation 295
38 Business Cycles 331
PART SIX-GROWTH MODELS
39 The Harrod-Domar Models 361
40 The Solow-Swan Model of Growth 368
41 The Solow-Swan Model of Economic Growth 373
42 The Endogenous Growth Theory 376
43 Steady State Growth 381
44 The Golden Rule of Accumulation 385
PART SEVEN--MACROECONOMIC POLICIES
45 Macroeconomic Policy 389
46 Monetary Policy 404
47 Classical, Keynesian and Modern Views on Monetary Policy 409
48 The Liquidity Theory of Money 413
49 Fiscal Policy 417
50 Monetarism versus Keynesianism 425
51 IS and LM Functions: General Equilibrium of Product and Money Market 432
52 Extensions of IS-LM Model 438
53 Effectiveness of Monetary and Fiscal Policy 449
PART EIGHT-MODERN MACROECONOMICS
54 The Rational Expectations Hypothesis 458
55 Supply-side Economics 463
56 The New Classical Macroeconomics 468
57 The Real Business Cycle Theory 475
58 New Keynesian Economics 480
PART NINE-MACROECONOMICS IN OPEN ECONOMY
59 Balance of Payments : Meaning and Components 491
60 Adjustment Mechanisms of Balance of Payments 501
61 Balance of Payments Policies : Internal and External Balance 512
62 Foreign Exchange Rate 526
63 Foreign Exchange Rate Policy 537