CHAPTER 1: INTRODUCTION: This
chapter gives an
account of how macroeconomics differs from the microeconomics
CHAPTER 2: NATIONAL INCOME ACCOUNTING
: This chapter explains the concept of national income and ways for calculating
it.
UPSC 2018: Increase in
absolute and per capita real GNP do not connote a higher level of economic
development, if
(a) industrial output fails to keep pace with
agricultural output.
(b) agricultural output fails to keep pace with
industrial output.
(c) poverty
and unemployment increase.
(d) imports grow faster than exports.
Ans: C
CHAPTER 3: MONEY AND BANKING: This
chapter explains the concept of demand for money and supply of money, how money creation occurs in
banking system and Limits to Credit Creation and Money Multiplier.
UPSC 2019: The money
multiplier in an economy increases with which one of the following?
(a)
Increase in the cash
reserve ratio
(b)
Increase in the
banking habit of the population
(c) Increase in the
statutory liquidity ratio
(d) Increase in the
population of the country
Ans:
B
CHAPTER 4: DETERMINATION OF INCOME AND EMPLOYMENT: This chapter explains the determination of National Income under
the assumption of fixed price of final goods and constant rate of interest in
the economy. The theoretical model used in this chapter is based on the theory
given by John Maynard Keynes.
CHAPTER 5: GOVERNMENT BUDGET AND THE ECONOMY: This chapter explains the components of the government budget to bring out the sources of
government revenue and avenues of government spending alongwith the concept of
deficits.
CHAPTER 6: OPEN ECONOMY MACROECONOMICS: This chapter introduces the concept of open economy
by explaining the
Balance of Payments and the Foreign Exchange Market mechanism.
UPSC 2019: Which one of the following is not
the most likely measure the Government/ RBI takes to stop the slide of Indian
rupee?
(a)
Curbing imports of
non-essential goods and promoting exports
(b) Encouraging
Indian borrowers to issue rupee denominated Masala Bonds
(c) Easing
conditions relating to external commercial borrowing
(d) Following an
expansionary monetary policy
Ans:
D