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CH 1 - Determination of National Income
CH 1 - Determination of National Income
*Limitations
- It does not consider health, safety,
pollution, standard of living, education etc.
Gross GNP = GDP + Net Factor Income From Abroad.
Production - Per Capita Income could be incorrect.
GDP = Irrespective of Nationality, Goods &
GNP (value added) - Illegal services are not considered
Services Produced Within Domestic Territory
GDP Of a Country are to be Considered. - unreported income is also not considered.
Prd- It is a sum total of
net value added at factor - Volunteer work is ignored.
cost across all producing
Net NNP = GNP - Depreciation units within domestic ternyory.
Less - Intermediate Purchase
MNP NDP NDP = GDP - Depreciation
+
2,50,000
2 4
+
2,50,000
40,000 +
Firm
- 12,000+
Household household
Y= C+I Government
3 export /
Firm import
Household Y= C+I+G+NET EXP
Government i.e Export - import
Y= C+I+G
Misc
ie. C = Consumption
I = Investments CONSUME MULTIPLIER
G = Government Multiplier refers to the phenomenon whereby a
MPC APC change in an injection of expenditure will lead to a
C proportionally large change in the level national income.
MPC = C
Y APC =
Y
More leakage= less Multiplier.
MPC = 1-MPS APC = 1-APS
SAVE CONSUMPTION
FUNCTION
Money Market
- Convenient medium - For Expenses. QTM / Cambridge Keynesian Theory Inventory Demand For
Friedman
of Exchange. - To have Command Fisher Approach Money
- It is a Common over Real Goods.
measure of Value. - For unforeseen
MV=KPV - People Hold Money Cost Of Consider Liquidity
- It is a standard of Situation. MV=PT
(Constant for 3 motives Brokerage Permanent Pref/ Tobin
Deferred Payment.
Saving) 1)DSY TO STAY ( Should Income
- 2)Precautionary be Considered -If Interest
it focus 3)I Speculative while Deposit - Determinate rate is high
on stoke Demand for in bonds ) of Demand then the
future for supply Invest in
opportunity. - ROI - Wealth bond or
-Brokerage - Price else hold
- Optimum - Inflation - More
Combination - ROI Interest
of Bonds Rate =
& Cash. More
Bonds
2,10,000+
Total Views - 20 Million
+
2,50,000
40,000 +
B) The
A) Rationale of
Sources of
Measuring Money
Money
Supply
Supply
i) Components
A) Definition The Objectives of Monetary Policy
of Monetary Analytics of Monetary Policy
Policy
Operating Procedures and Instruments
B) The
Monetary Policy ii) Instruments for implementing Monetary
Framework Policy
C) The
Organisational Cash Reserve Ratio (CRR)
Structure for Statutory Liquidity Ratio (SLR)
Monetary Policy Liquidity Adjustment Facility (LAF)
Decisions Marginal Standing Facility (MSF)
Market Stabilisation Scheme (MSS)
Open Market Operations
CH. 4 – INTERNATIONAL TRADE
A) The B) The
Mercantilist Theory of
s’ View of Absolute
Internation Advantage
al Trade
Unit 1 -
Theories of
E) New International
C) The
Trade Trade Theory of
Theory – An Comparative
Introduction Advantage
D) The
Heckscher-
Ohlin
Theory of
Trade
Unit 2 - The Instruments of Trade Policy
Specific Tariff
Ad valorem tariff Technical Measures Non-technical Measures
Mixed Tariffs
Compound Tariff or a Compound • Sanitary and • Import Quotas
Duty Phytosanitary • Price Control Measures
Technical/Other Tariff (SPS) Measures • Non-automatic Licensing and
Tariff Rate Quotas • Technical Barriers To Prohibitions
Most-Favored Nation Tariffs Trade (TBT) • Financial Measures
Variable Tariff • Measures Affecting Competition
Preferential Tariff • Government Procurement Policies
Bound Tariff • Trade-Related Investment Measures
Applied Tariffs • Distribution Restrictions:
Escalated Tariff • Restriction on Post-sales Services:
Prohibitive tariff • Administrative Procedures
Important subsidies • Rules of origin
Tariffs as Response to Trade • Safeguard Measures
Distortions • Embargos
Anti-dumping Duties
Countervailing Duties
Chapter 4 - Unit 3 – Trade Negotiations
• Standard • General
• Employment
• Income
• GDP Goods Services Intellectual
• Demand
Chapter 4 - Unit 4 – Exchange Rate and Its Economic Effects
Decided by Changes
Govt. from time
to time
Unit 5 - International Capital Movements