Macroeconomic Theory By Ml Jhingan Pdf 88
Macroeconomic Theory by ML Jhingan: A Comprehensive Guide
Macroeconomic theory is the study of the behavior and performance of the economy as a whole. It deals with issues such as national income, economic growth, unemployment, inflation, business cycles, fiscal policy, monetary policy, and international trade. Macroeconomic theory helps us understand how different policies and events affect the aggregate level of output, income, employment, prices, and exchange rates in the economy.
One of the most popular and widely used textbooks on macroeconomic theory is Macroeconomic Theory by ML Jhingan. This book covers all the major topics and concepts in macroeconomics, such as consumption function, investment function, multiplier, aggregate demand and supply, IS-LM model, balance of payments, foreign exchange rate, economic growth models, rational expectations hypothesis, and more. The book also provides a historical perspective on the development of macroeconomic thought and analysis, from classical to Keynesian to modern macroeconomics.
macroeconomic theory by ml jhingan pdf 88
Macroeconomic Theory by ML Jhingan is suitable for undergraduate and postgraduate students of economics, as well as for researchers and practitioners who want to learn more about the theoretical foundations and empirical applications of macroeconomics. The book is written in a clear and concise manner, with numerous examples, diagrams, tables, and exercises to enhance the understanding of the readers. The book also includes references to other relevant books and articles for further reading.
If you are looking for a comprehensive guide on macroeconomic theory by ML Jhingan, you can download the PDF version of the book online for free. The PDF version of the book has 420 pages and was published in 2003 by Vrinda Publications[^1^]. You can also find other editions of the book online or in your local library or bookstore.
Macroeconomic theory is an essential subject for anyone who wants to understand how the economy works and how to improve its performance. By reading Macroeconomic Theory by ML Jhingan, you will gain a solid knowledge and appreciation of the principles and applications of macroeconomics.
Consumption Function and Saving Function
The consumption function is the relationship between the level of income and the level of consumption expenditure. It shows how much households spend on goods and services out of their disposable income. The consumption function can be expressed as C = a + bYd, where C is consumption, a is autonomous consumption (the minimum level of consumption that does not depend on income), b is the marginal propensity to consume (the fraction of additional income that is spent on consumption), and Yd is disposable income (income after taxes and transfers).
The saving function is the relationship between the level of income and the level of saving. It shows how much households save out of their disposable income. The saving function can be derived from the consumption function by subtracting consumption from disposable income. The saving function can be expressed as S = -a + (1-b)Yd, where S is saving, -a is autonomous saving (the minimum level of saving that does not depend on income), and 1-b is the marginal propensity to save (the fraction of additional income that is saved).
The consumption function and the saving function are important for macroeconomic analysis because they determine the level of aggregate demand and output in the economy. They also show how changes in income, taxes, transfers, and expectations affect the consumption and saving behavior of households.
Investment Function and Multiplier
The investment function is the relationship between the level of output and the level of investment expenditure. It shows how much firms spend on capital goods such as machinery, equipment, buildings, and inventories out of their expected profits. The investment function can be expressed as I = f(r), where I is investment, r is the real interest rate (the nominal interest rate adjusted for inflation), and f(r) is a downward-sloping function that reflects the negative relationship between the interest rate and investment.
The multiplier is the ratio of the change in output to the change in autonomous expenditure. It shows how much output increases or decreases as a result of an increase or decrease in autonomous expenditure such as government spending, exports, or autonomous consumption or investment. The multiplier can be calculated as k = 1/(1-b), where k is the multiplier and b is the marginal propensity to consume.
The investment function and the multiplier are important for macroeconomic analysis because they determine the level of equilibrium output and income in the economy. They also show how changes in interest rates, expectations, fiscal policy, and monetary policy affect the investment and output behavior of firms. c481cea774