Introduction: Macroeconomic variable; functional relationships and parameters; national income and national product accounting; circular flow of income and spending.

Classical Macroeconomics: Say's law of market; the quantity theory of money; saving, investment and the rate of interest to the classical full-employment equilibrium; Wicksell's formulation: monetary and fiscal policy in classical economics. Keynesian Macroeconomics:

The consumption function; the multiplier; simple Keynesian model; liquidity preference and the speculative demand for money; the liquidity trap; extensions of the simple Keynesian model, government - expenditure multiplier; balanced-budget multiplier; investment and foreign-trade multiplier; policy implications of the Keynesian model.

Aggregate Demand and Supply Curves. Theory of Inflation: Demand-pull and cost-push inflation; the dynamics of inflation; hyper-inflation and creeping inflation; Phillips curve; controls of inflation.