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UNIT 2. MONEY AND BANKING
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UNIT 3. DETERMINATION OF INCOME AND EMPLOYMENT
- 3.1. Introduction of classical and modern approach
- 3.2. Involuntary unemployment and full employment
- 3.3. Aggregate Demand and its Components
- 3.4. Aggregate supply and its components
- 3.5. Consumption function: Propensity to consume – APC, MPC
- 3.6. Saving function: Propensity to save – APS, MPS
- 3.6. Investment
- 3.7. Ex-ante saving & investment; Ex-post saving and investment
- 3.8. Determination of Equilibrium Income/ output in the Short Run
- 3.9. Investment multiplier and its Mechanism
- 3.10. Problems of excess demand and deficient demand and measures to correct them
- 3.10.1. Changes in government spending, taxes and money supply
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UNIT 4. GOVERNMENT BUDGET AND THE ECONOMY
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UNIT 5. BALANCE OF PAYMENTS
- 5.1. The Balance of Payments – meaning and components
- 5.1.1.Current Account
- 5.1.2. Capital Account
- 5.1.3. Balance of Payments Surplus and Deficit – disequilibrium
- 5.2 The Foreign Exchange Market
- 5.2.1. Meaning and types of exchange rate (Fixed and Flexible) – merits and demerits
- 5.2.2. Determination of the Exchange Rate (floating)
- 5.2.3. Managed Floating
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