MACROECONOMICS: POINTS FOR DISCUSSION

First Session

I. INTRODUCTION: AGGREGATE EXPENDITURE AND GDP

Issues relating to Real GDP and Aggregate Expenditure were taken up. In that context, the
following points were discussed:

1. Meaning of value of production, relevance of expenditure in that context;

2. Meaning of GDP i.e. total value of goods and services produced in an economy during a
particular point of time; 
3. How Aggregate income becomes equal to Aggregate Expenditure;
4. Y=C+I+G+[X-M];
5. Four components of aggregate expenditure:[i] Consumption expenditure, [ii] Investment
expenditure;[iii] Government expenditure; and [iv] Net of export earnings and import
payments

You may refer:[i] Economics by Lipsey & Chrystal [Page nos.333-338];

                     [ii] Macroeconomics by R. Glenn Habbard & Anthony Patrick O'Brien [Page
nos.234-240].

II. INTRODUCTION TO MONEY

1. Origin of money.
2. Functions of money.
3. Sources of money supply.
4. Creation of money. 
5. Demand for money.

References:: [i] Macroeconomics by Glenn & O'Brien [Page nos.440-454].

                      [ii] Macroeconomics by Baumol & Blinder [Page nos. 230-245].
                      [iii] Economics by Lipsey & Chrystal [Page nos.447-463].