Macroeconomic theories were designed to cope up with the economic turmoil, such as Great Depression, so as to stabilize the economy. This book comprehensively explains the broad aggregates and their interactions such as national income and output, the unemployment rate, and price inflation, and sub-aggregates like total consumption and investment spending, and their components.

Divided into six parts, the textbook elaborates various aspects of macro-economics—circular flow and its effects on national income, monetary theory, business cycle theory and macroeconomic policies—in detail. The book makes clear the difference between three approaches to economics—Keynesian economics, which focuses on demand; New-classical economics, which is based on rational expectations and efficient markets; and Innova-tion economics, which is focused on long run growth through innovation.

A prominent feature of this text is the use of simple algebraic expressions and formulations to reinforce analytical expositions of complex macroeconomic theories in students. The book also explicates how macroeconomic models and their forecasts can be utilized by both governments and large corporations to assist in the development and evaluation of economic policy. The chapters are incorporated with real-life examples giving practical insight on the subject.

Primarily intended for the undergraduate and postgraduate students of economics, this book can also be beneficial for the students opting for the courses in commerce.

CONTENTS
Preface
Part I
INTRODUCTION
1. Microeconomics and Macroeconomics
2. Basic Concepts in Macroeconomics
Part II
CIRCULAR FLOW AND
NATIONAL INCOME
3. Circular Flow of Income
4. The National Income and Its Distribution
Part III
MACROECONOMIC THEORY
5. The Classical Theory of Employment
6. Say’s Law of Market
7. The Keynesian Theory of Income and Employment
8. The Multiplier
9. Balanced Budget Multiplier and Foreign Trade Multiplier
10. The Acceleration Principle
11. Super Multiplier
12. Consumption Function
13. Theories of Consumption Function
14. Savings and Investment
15. Rate of Interest
16. Keynes’ Theory of Money and Prices Reformulation of the Quantity Theory of Money
17. Evaluation of Keynesian Theory of Employment
Part IV
MONETARY THEORY
18. IS-LM Function: General Equilibrium of Product and Money Markets
19. Inflation
20. Theories of Inflation
21. The Phillips Curve
Part V
THEORIES OF BUSINESS CYCLE
22. Business Cycles
23. Some Alternative Theories of Trade Cycle
Part VI
MACROECONOMIC POLICY AND THEORIES OF DISTRIBUTION
24. Macroeconomic Policy
25. Monetary Policy
26. Fiscal Policy
27. Incomes Policy
28. Rational Expectations
29. Monetarism vs Keynesianism
30. Supply Side Economics
31. New Classical Macro-economics
32. Macro Theories of Distribution
Index