ME Fiscal Policy Notes
1.3 Micro & Macro Economics for Business Decisions
Syllabus of the chapter:
(B) Macro Economics
(1)Fiscal Policy: Basic Economics Indices (National Income, National Production, National Employment, General prices level).
Aggregate Demand (Consumptions, Government Expenditure & Business investment). Aggregate Supply. Determination of Income (or production). Taxation & Fiscal policy.
A Note for MFA (I semester) Students:-The words underlined above are the portions completed till date in the class and are the portions for your second internal examination as well.
Macro Economics
Introduction of Macro Economics
The term ‘macro’ was first used in economics by Ragner Frisch in 1933. But as a methodological approach to economic problems, it originated with the Mercantilists in the 16th and 17th centuries. They were concerned with the economic system as a whole.
In the 18th century, the Physiocrats adopted it in their Table Economies to show the ‘circulation of wealth’ (i.e., the net product) among the three classes represented by farmers, landowners and the sterile class. Malthus, Sismondi and Marx in the 19th century dealt with macroeconomic problems. Walras, Wicksell and Fisher were the modern contributors to the development of macroeconomic analysis before Keynes.
Certain economists, like Cassel, Marshall, Pigou, Robertson, Hayek and Hawtrey, developed a theory of money and general prices in the decade following the First World War. But credit goes to Keynes who finally developed a general theory of income, output and employment in the wake of the Great Depression.
Meaning of Macro Economics
Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole.
The word ‘Macro’ is derived from the Greek word macros meaning large. Macroeconomics deals with aggregative economics. Macroeconomics is defined as the study of overall economic phenomena, such as
Syllabus of the chapter:
(B) Macro Economics
(1)Fiscal Policy: Basic Economics Indices (National Income, National Production, National Employment, General prices level).
Aggregate Demand (Consumptions, Government Expenditure & Business investment). Aggregate Supply. Determination of Income (or production). Taxation & Fiscal policy.
A Note for MFA (I semester) Students:-The words underlined above are the portions completed till date in the class and are the portions for your second internal examination as well.
Macro Economics
Introduction of Macro Economics
The term ‘macro’ was first used in economics by Ragner Frisch in 1933. But as a methodological approach to economic problems, it originated with the Mercantilists in the 16th and 17th centuries. They were concerned with the economic system as a whole.
In the 18th century, the Physiocrats adopted it in their Table Economies to show the ‘circulation of wealth’ (i.e., the net product) among the three classes represented by farmers, landowners and the sterile class. Malthus, Sismondi and Marx in the 19th century dealt with macroeconomic problems. Walras, Wicksell and Fisher were the modern contributors to the development of macroeconomic analysis before Keynes.
Certain economists, like Cassel, Marshall, Pigou, Robertson, Hayek and Hawtrey, developed a theory of money and general prices in the decade following the First World War. But credit goes to Keynes who finally developed a general theory of income, output and employment in the wake of the Great Depression.
Meaning of Macro Economics
Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole.
The word ‘Macro’ is derived from the Greek word macros meaning large. Macroeconomics deals with aggregative economics. Macroeconomics is defined as the study of overall economic phenomena, such as