"Basics of Macroeconomics" by Anupam Sarma is a comprehensive textbook designed specifically for B.A. 2nd Semester students pursuing Economics (Major & Minor) under the FYUGP NEP syllabus of various Indian universities, including Dibrugarh University. Published by Mahaveer Publications, this book covers essential macroeconomic concepts such as national income, inflation, unemployment, fiscal and monetary policies, and economic growth with clarity and academic rigor.

The book emphasizes conceptual understanding, real-world application, and exam-oriented content, making it a reliable guide for undergraduate students of economics. Each chapter includes clear explanations, relevant examples, and review questions to aid learning and revision.

Ideal for students preparing for university examinations, this book is a valuable academic companion for understanding the foundational aspects of macroeconomics.CHAPTER-1 BASIC OF MACROECONOMICS ..................................... 1-47

• 1.1 Introduction
• 1.2 Nature of Macro Economics
• 1.3 Scope and Importance of Macro Economics
• 1.5 Difference between Micro and Macro Economics
• 1.6 Macroeconomic Objectives and Instruments

CHAPTER-2 NATIONAL INCOME ACCOUNTING ................................. 8-47

• 2.1 Economic Activity and its Constituents
• 2.2 Meaning of National Income
• 2.3 Views of Prominent Economists
  • 2.3.1 Views of Marshall on National Income
  • 2.3.2 Pigou's views on National Income
  • 2.3.3 Fisher's views on National Income
• 2.4 Some Related Concepts of National Income
• 2.5 National Income and Gross National Product
• 2.6 National Income at current prices and National Income at constant (base) prices
• 2.7 Gross Domestic Product (GDP)
• 2.8 Net National Product at Market Price and Net National Product (NNP) at Factor Cost
• 2.9 Net Domestic Product (NDP)
• 2.10 Private Income
• 2.11 Personal Income
• 2.12 Disposable Personal Income
• 2.13 Components of National Income
• 2.14 Methods of Estimating National Income
• 2.15 Reconciliation between Different Methods of Estimating National Income
• 2.16 Circular Flow of Income in a Two-Sector Economy
• 2.17 Circular Flow of Income in Three Sector Economy
• 2.18 Circular Flow of Income in Four Sector Economy
• 2.19 Practical Difficulties of Estimating National Income
• 2.20 National Income and Economic Welfare

CHAPTER-3 THEORY OF EMPLOYMENT ....................................... 48-75

• 3.1 Say's Law of Market (Classical Model)
• 3.2 Full Employment under Classical Economy
• 3.3 Full Employment Output under Classical Economy
• 3.4 Saving Investment Balance Under Classical Economy
• 3.5 Effect of Change in Investment on Rate of Interest
• 3.6 Classical Theory of Employment
• 3.7 Keynesian Theory
  • 3.7.1 Aggregate Demand
  • 3.7.2 Aggregate Supply
  • 3.7.3 Principle of Effective Demand
  • 3.7.4 Importance of Effective Demand
• 3.8 Full Employment Theory of Keynes
• 3.9 Criticisms of Keynesian Theory of Effective Demand
• 3.10 Keynesian Theory of Income and Output
• 3.11 Keynesian Equilibrium Level of Income Through Saving and Investment
• 3.12 Comparison Between Keynesian and Classical Economies
• 3.13 Implications of Keynesian Theory
• 3.14 Basic Assumptions of Keynesian Theory
• 3.18 Criticisms of Keynesian Theory

CHAPTER-4 CONSUMPTION FUNCTION ....................................... 76-97

• 4.1 Consumption Function (Propensity of Consume)
• 4.2 Derivatives and Propensity to Consume and Save
• 4.3 Relationship Between MPC and MPS
• 4.4 Derivation of MPC and MPS as Slope of Consumption Function and Saving Function
• 4.5 Psychological Law of Consumption
• 4.6 Implications
• 4.7 Technical Attributes of Consumption Function
• 4.8 Relationship between APC and MPC
• 4.9 Paradox of Thrift
• 4.10 Subjective and Objective Factors Affecting Consumption
• 4.11 Different Types of Consumption Function
• 4.12 Measures to Raise Propensity to Consumer
• 4.13 Fisher's Model of Intertemporal Consumption
• 4.14 Permanent Income Hypothesis
• 4.15 Life Cycle Hypothesis
• 4.16 Random Walk Model of Consumption

CHAPTER-5 INVESTMENT ................................................ 98-124

• 5.1 Investment and Its Different Types
• 5.2 Differences between Gross Investment and Net Investment
• 5.3 Differences between Autonomous (public) Investment and Induced (private) Investment
• 5.4 Marginal Efficiency of Capital (MEC)
• 5.5 Relationship between MEC and Investment
• 5.6 Responsible Factors Affecting the Inducement to Investment or MEC

CHAPTER-6 MONEY ..................................................... 125-156

• 6.1 Evolution of Money
• 6.2 Definitions of Money
• 6.3 Stages in the Evolution of Money
• 6.4 Characteristics of Money
• 6.5 Classification of Money
• 6.6 Modern Forms of Money
• 6.7 Importance of Money
• 6.8 Value of Money
• 6.9 Near-Money and Its Different Forms
  • 6.9.1 Similarities Between Money and Near-Money
  • 6.9.2 Difference Between Money and Near-Money
  • 6.9.3 Significance of Near-Money
• 6.10 Functions of Money

CHAPTER-7 SUPPLY OF MONEY AND THE CENTRAL BANK ........................ 125-156

• 7.1 Definition of Money Supply
• 7.2 Determinants of Money Supply
  • 7.2.1 Money Stock Measures in India
• 7.3 High-powered Money and the Money Multiplier
• 7.4 Functions of Reserve Bank of India
• 7.5 Demonetisation of ₹500 and ₹1000: Notes Surgical Strike on Black Money
• 7.6 Regulatory and Promotional Roles of Reserve Bank of India
• 7.7 Policy of Credit Control
• 7.8 Selective Credit Control
  • 7.8.1 Types of Selective Credit Controls
• 7.9 Meaning of Monetary Policy
  • 7.9.1 Objectives of Monetary Policy
  • 7.9.2 Role of Monetary Policy in Developing Countries
  • 7.9.3 Instruments of Monetary Policy
• 7.10 Commercial Banking
  • 7.10.1 Classification of Banks
  • 7.10.2 Different Stages of Development of Indian Banking System

CHAPTER-8 DEMAND FOR MONEY .......................................... 157-167

• 8.1 The Classical View of the Demand for Money
• 8.2 Keynes' View of the Demand for Money
• 8.3 Keynesian Liquidity Preference Theory of Interest
  • 8.3.1 Policy Implications of Liquidity Preference Theory
• 8.4 General Equilibrium of Real and Money Markets
  • 8.4.1 Changes in General Equilibrium

CHAPTER-10 INFLATION ............................................... 183-207

• 10.1 Introduction
• 10.2 Meaning of Inflation
• 10.3 Demand Pull Inflation
• 10.4 Cost-Push Inflation
  • 10.4.1 The Inflationary Gap
  • 10.4.2 How can the inflationary gap be wiped out?
  • 10.4.3 Importance
• 10.5 Causes of Inflation
• 10.6 Measures to Control Inflation
• 10.7 Effects of Inflation

CHAPTER-11 MONETARY POLICY ......................................... 208-210

• 11.1 Meaning of Monetary Policy
• 11.2 Objectives of Monetary Policy
• 11.3 Role of Monetary Policy in Developing Countries
• 11.4 Instruments of Monetary Policy

CHAPTER-12 FISCAL POLICY .......................................... 211-219

• 12.1 Introduction
• 12.2 Fiscal Policy for Full Employment
• 12.3 Role of Fiscal Policy in Developing Economy

CHAPTER-13 BALANCE OF PAYMENT ...................................... 220-240

• 13.1 Open-Economy Macro Economics
• 13.2 Net Exports and Output in the Open Economy
• 13.3 Short run Impact of Trade on GDP/Determination of Equilibrium GDP in an Open Economy
• 13.4 The Foreign Trade Multiplier
• 13.5 Meaning of Balance of Payment
• 13.6 Structure of Balance of Payment/Accounting in Balance of Payment/Components of Balance of Payment
• 13.7 Components of Current Account
• 13.8 Constituents of Capital Account
• 13.9 Balance of Payment and Balance of Trade
• 13.10 Causes of Disequilibrium in the Balance of Payments
• 13.11 Correction of Adverse Balance
• 13.12 Monetary Approach to Balance of Payments

CHAPTER-14 INFLATION, UNEMPLOYMENT AND EXPECTATIONS ................... 168-182

• 14.1 Introduction of Phillips Curve
• 14.2 Explanation of Phillips Curve
• 14.3 Lipsey's Theory of Phillips Curve
• 14.4 Slope and Position of Phillips Curve
• 14.5 Policy Implications of Phillips Curve
• 14.6 Long run Phillips Curve: Friedman's View/Adaptive Expectations Hypothesis
• 14.7 Alternative Approach of Natural Rate of Unemployment/Aggregate Demand and Aggregate Supply Approach of Natural Rate of Unemployment
• 14.8 Criticisms of Long run Phillips Curve