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📘 Part A: Introductory Macroeconomics
1️⃣ Unit I: National Income and Related Aggregates
This unit explains the concept of National Income and its measurement. It introduces macroeconomics and key terms such as final goods, intermediate goods, capital goods, depreciation, stock and flow variables, circular flow of income, and domestic territory.
Students learn three main methods of calculating national income:
Value Added Method
Income Method
Expenditure Method
The GDP identity is explained as:
GDP=C+I+G+(X−M)GDP = C + I + G + (X - M)GDP=C+I+G+(X−M)
Y = C + I + G + (X - M)output is the sum of spending categoriesCIGNXhouseholdsfirmsgovernmenttradeeach segment is one source of total demand
The unit also covers Nominal vs Real GDP, GDP Deflator, limitations of GDP as a measure of welfare, and externalities. Practice MCQs, case-based questions, and worksheets are included for exam preparation.
2️⃣ Unit II: Money and Banking
This unit explains the concept and functions of money such as:
Medium of Exchange
Measure of Value
Store of Value
Standard of Deferred Payment
It covers money supply components (M1), credit creation by commercial banks, and the concept of money multiplier:
MoneyMultiplier=1/LRRMoney Multiplier = 1 / LRRMoneyMultiplier=1/LRR
The role and functions of the Reserve Bank of India (RBI) are discussed in detail, including:
Bank Rate
Repo Rate
Reverse Repo Rate
CRR (Cash Reserve Ratio)
SLR (Statutory Liquidity Ratio)
Open Market Operations
This unit helps students understand how the central bank controls inflation and money supply.
3️⃣ Unit III: Determination of Income and Employment
This unit explains aggregate demand (AD), aggregate supply (AS), and equilibrium level of income and employment.
It covers:
Consumption function
Saving function
Investment
Multiplier concept
Excess demand and deficient demand
Students learn how national income is determined in a two-sector and three-sector model.
4️⃣ Unit IV: Government Budget and the Economy
This chapter explains the structure and objectives of a government budget.
It includes:
Revenue and Capital receipts
Revenue and Capital expenditure
Fiscal deficit, Revenue deficit, Primary deficit
Role of taxation and public expenditure
The unit helps students understand fiscal policy and its impact on economic stability.
5️⃣ Unit V: Balance of Payments (BOP) and Foreign Exchange
This section explains:
Meaning and components of Balance of Payments
Current Account and Capital Account
Autonomous and accommodating items
Foreign exchange rate
Fixed and flexible exchange rate systems
Students learn how international transactions are recorded and how exchange rates are determined.
📗 Part B: Indian Economic Development
6️⃣ Unit VI: Development Experience (1947–90) and Economic Reforms since 1991
This unit discusses India’s economic policies after independence, including:
Planning and mixed economy model
Industrial and trade policies
LPG reforms (Liberalization, Privatization, Globalization)
Impact of reforms on Indian economy
It explains how economic reforms transformed India’s growth structure.
7️⃣ Unit VII: Current Challenges Facing Indian Economy
This unit focuses on major developmental challenges:
Human Capital Formation
Rural Development
Employment
Sustainable Economic Development
It highlights issues like unemployment, poverty, environmental degradation, and government initiatives for inclusive growth.
8️⃣ Unit VIII: Development Experience of India – A Comparison with Neighbours
This chapter compares India’s development with neighboring countries such as China and Pakistan.
It analyzes differences in:
Growth rate
Population policies
Sectoral contribution
Human Development indicators
Students understand comparative economic performance and policy outcomes.