Business Environment Notes Unit 3

UNIT 3 Concepts of Macro Economics and National Income Determination

• Definition, Importance, Limitations of Macro- Economics
• Macro-economic Variables
• Circular flow in 2, 3, 4 sector
• Multiplier in 2, 3, 4 Sector
• National Income- Concepts, Definition
• Methods of Measurement National Income
• National Income in India
• Precautions in Estimation of National Income
• Theory of Full Employment and Income
• Modern (Keynesian) Approach
• Consumption Function