Macroeconomics enriches our knowledge of the functioning of an economy by studying the behaviour of national income, output, investment, saving and consumption. It guides us in solving the larger problems of unemployment, economic instability and slow economic growth. It is in terms of macroeconomics that monetary problems can be analyzed and understood properly. Frequent changes in the value of money, characterized by inflation or deflation affect the economy adversely. Adopting monetary, fiscal and direct control measures based on macroeconomics helps in mitigating the negative impacts.
Advanced Macroeconomics has a wide coverage and comprehensively studies all the topics normally included in the subject, viz. Concept and Calculation of National Income, Classical Theory of Employment, Determination of Income, Output and Employment, Savings, Investment and Multiplier, Consumption Function, Marginal Efficiency of Capital, Rate of Interest, IS-LM Analysis of Demand, Saving-Investment Equality, Principle of Acceleration, Unemployment in an Undeveloped Economy, Secular Stagnation, Money and Prices, Inflation and Deflation, Inflation and Unemployment: Trade-off, Credit Creation and Credit Control, Business Cycles, Economic Stabilization, Monetary Policy, Fiscal Policy, Deficit Financing, Public Debt, Open Economy Macroeconomics, etc. The book incorporates the latest developments in the subject and the chapters are organised in topics that are more or less self-contained.
The focus of this book is on developing simple theoretical models that provide insight into the reasons for fluctuations in aggregate variables such as an economy’s total production of various goods and services, the aggregate level of unemployment, the general level of interest rates, and the overall level of prices. These models explore how shocks or impulses to the economy influence individuals’ behavior in specific markets and analyze the resulting implications in terms of changes in aggregate variables.
A clear, rigorous, primarily graphical and mathematical analysis has been provided in the book. All the pertinent concepts, theories and laws have been presented in a lucid manner and accessible style making the book indispensable for all those who wish to get a good grounding in the subject. Besides providing an exhaustive and elaborate presentation of ideas, another objective of the book is to encourage students to think of policy issues in terms of macroeconomics models.
The book will meet the requirements of B.A. (Hons.) and M.A. Economics students of all the Indian universities. It will also be useful for the students of MBA, CA, ICWA, CS as well as those preparing for competitive examinations such as Indian Administrative Services, Indian Economic Services, etc.
K.R. Gupta is a well-known Economist. He has published over twenty books and contributed more than hundred papers in reputed journals, being published in India and abroad. The books written by him include Advanced Microeconomics (2 vols.); Economic Growth Models; Global Financial Crisis (3 vols.); International Economics (2 vols.); Economics of Development and Planning (2 vols.); and Indian Economy (3 vols., co-authored). His latest edited books are Rural Development in India (4 vols.); and Indian Economic Policies and Data (co-edited). Dr. Gupta had been teaching postgraduate classes and guiding research for about two decades in the University of Jammu and Kurukshetra University. He has also worked as an Economist in private as well as in public sector. His last assignment was as Economic Advisor to the Modi Enterprises.
