The document provides an overview of topics covered in a macroeconomics and business environment course including national output and income, consumption, investment, aggregate demand, monetary and fiscal policy, and the business environment. It also outlines the internal evaluation process for the course including midterm exams, quizzes, presentations, and participation. Key concepts in macroeconomics are defined such as GDP, GNP, aggregate supply and demand, and how national output and income are measured.

1. MACROECONOMICS
AND BUSINESS
ENVIRONMENT

2. Detailed Curriculum
Sl. No. Topics Session
1 Overview of macroeconomics
2 Measuring national output and national income
3 Consumption, saving and investment
4 Aggregate demand and the multiplier
5 Money and banking
6 Monetary and fiscal policy
7 Business cycle and unemployment
8 Price stability
9 The open economy and forex
10 Business Environment- Technological
11 Business Environment- Social
12 Business Environment- Political
13 Business Environment- Economic

3. Internal Evaluation
Sl. No. Category Marks
1 Mid Term (if any) 20
2 Quiz 10
3 Presentation 5
4 Viva 5
5 Discipline and Class Participation 5+5
Total 50

4. MACROECONOMICS
INTRODUCTION

5. Economics: As a Science
• Economics is the study of the allocation of our
limited resources to satisfy our unlimited wants.
• Resources are inputs that are used to produce
goods and services.
• Scarcity forces us to make choices on how
to make the best use our limited resources.

6. Macroeconomics And Microeconomics
• Microeconomics deals with the smaller units
within the economy.
• It attempts to understand the decision making
behavior of firms and households and their
interaction in markets for particular goods or
services.
• Microeconomics looks at the trees while
macroeconomics looks at the forest.

7. Macroeconomics And Microeconomics
• Macroeconomics deals with the aggregate or
total economy.
• It looks at economic problems as they influence
the whole society, including the topics of inflation,
unemployment, business cycles and economic
growth.

8. Goals of Macroeconomic Policies
• Employment
• High living standards
• Price Stability
• Reduction of economic inequality and removal of
poverty.
• Rapid Economic Growth (GDP)
• External Balance (Foreign Trade Balance)

9. Stocks and Flows
• Stocks: Specified point of time
• For example: Money Supply
Given at a point in time e.g. on 3 April 2005
or 3 April 2006
• Flows: Specified Period of time
• Flow variables expressed in per unit of time
e.g. per hour, per week, per month, or per
year (GDP, consumption, Saving,
Investments Exports, Imports etc.)

10. Aggregate Supply and Aggregate Demand
• Aggregate Supply: the amount of output that an
economy can produce with its given resources and
technology available.
• Aggregate Demand: the total demand for goods by
consumer, by industry, by the government and be
foreign countries (export) etc.
• The Aggregate Supply (AS) curve represents the
quantity of output firms are willing to supply at each
given price.
• The Aggregate Demand (AD) curve represents the
quantity of output the consumers, investors etc. are
willing to buy at each given price.
• to consume, for new investment, for goods purchased

11. Measuring National Output and
National Income
• Concepts of National Product
• GDP : the value of all final goods and services produced
in the country within a given period.
• Gross Domestic Product (GDP) at market price
• Gross Domestic Product (GDP) at factor cost
GNP: GDP+ Net income from abroad
Gross National Product (GNP) at market price
• Gross National Product (GNP) at factor cost

12. • Net Domestic Product (NDP) at market price
• Net Domestic Product (NDP) at factor cost
• NDP= GDP-Depreciation

13. • Net National Product (NNP) at market price
• Net National Product (NNP) at factor cost

14. • GNP =
Market value of Domestically produced goods
and Services + Income earned by the residents
of a country in foreign countries - Income earned
by the Foreigners in the country
GDP=
Market value of Domestically produced goods
and Services + Income earned by the
Foreigners in the country -Income earned by the
residents of a country in foreign countries

15. • NNP = GNP- Depreciation
• Personal Income
is Sum of all kinds of incomes received by
the individuals from all sources of incomes
e.g. wage and salaries, fees and
commission, bonus, fringe benefits,
dividends, interest earnings and earnings
from self employment.

16. • GNP market price= GNPfactor cost +Net Indirect
taxes – Depreciation
• NNP market price = GNP - Depreciation
• NNPfactor cost = NNP market price – Indirected
Taxes + Subsidies
• Disposable Income = Personal Income –
Direct taxes