Week 1: National accounts, measurement of GDP, circular flow, AD/AS basics — practice diagrams and definitions. Week 2: Consumption, investment, money demand/supply — solve IS-LM derivations and monetary policy examples. Week 3: Fiscal policy, multipliers, budget deficits/debt dynamics — numerical problems and policy evaluation. Week 4: Inflation, Phillips curve, expectations — practice short-run vs long-run trade-offs and costs of inflation. Week 5: Open-economy macro: exchange rates, balance of payments, Mundell-Fleming — comparative statics exercises. Week 6: Growth models, development indicators, revision of past HL exam questions and timed practice.
Unlike many Western texts, it analyzes theories like Keynesianism with a specific lens on the Indian economy and emerging markets. macroeconomics theory and policy hl ahuja pdf better
Recent editions include critical discussions on contemporary Indian developments such as Demonetization and the implementation of GST . Week 1: National accounts, measurement of GDP, circular
Detailed analysis of income and employment determination. Week 4: Inflation, Phillips curve, expectations — practice
| | Topics | Pedagogical Strength | | :--- | :--- | :--- | | National Income | Circular flow, GDP measurement (expenditure, income, value-added), real vs. nominal | Numerous solved numerical examples | | Classical & Keynesian Debate | Say’s Law, wage-price flexibility, Keynes’ critique, effective demand | Compares Classical & Keynesian models side-by-side | | Consumption & Savings | Keynesian psychological law, Kuznets puzzle, Duesenberry (relative income), Friedman (permanent income), Modigliani (life-cycle) | Extensive derivation of consumption functions | | Investment | MEC vs. MEI, accelerator principle, Tobin’s q | Includes business cycle integration | | IS-LM Model | Derivation, slopes, shifts, policy effectiveness (liquidity trap, classical range) | Graphical shifts for fiscal vs. monetary policy | | Aggregate Demand & Supply | AD derivation from IS-LM, SRAS & LRAS (Keynesian, Classical, New Classical) | Clear explanation of supply shocks | | Inflation & Unemployment | Phillips curve (original, expectations-augmented), NAIRU, stagflation | Compares Friedman/Phelps with Keynesian views | | Open Economy | Mundell-Fleming model (IS-LM-BP), exchange rate regimes (fixed vs. floating) | Policy implications for small vs. large economies |