Question
can you please give details summary covering for all these topics please. :) 1. Market Failure and Government Intervention (Chapter 7): definitions, reasons for market
can you please give details summary covering for all these topics please. :)
1. Market Failure and Government Intervention (Chapter 7): definitions, reasons for market failure, and government intervention in the market, free market output and externality, socially optimal output, imposition of taxes to internalise the externalities, Public goods, merit goods, publicly provided goods, their characteristics, consumer surplus, producer surplus.
2. Macroeconomics (Chapter 9): GDP - definitions, actual and potential, different measures of GDP, AE function, major components of Aggregate Expenditure/Aggregate demand and equilibrium income. Disposable Income, tax, savings and consumption, investment, government expenditure, exports and imports functions. Multiplier- concept and calculation, government spending multiplier, investment multiplier, open economy multiplier. Output determination and employment (Chapter 10): Income expenditure model. Illustrating the consumption, investment, government expenditure and net export function, finding equilibrium income, finding open economy multiplier, output employment relationship.
3. Output determination and Inflation (Chapter 12): AD-AS (Aggregate demand and Aggregate Supply) model, effects of changes in AD and or AS on the output, employment and price level. Demand and supply shocks and effects on the output, employment and price level. Demand pull and cost push inflation. Recessionary and inflationary gap. Monetary and Fiscal policies (Chapter 13): Major tools and types of fiscal policy, effect of fiscal policy and monetary policy on output employment and price level, objectives and trend of monetary policy, determinants of economic growth.
4. Supply side of the economy and supply side policies. Objectives of supply side policies and long run economic growth and their determinant. International Sector (Chapter 14 and 15): Balance of payments, participants in the foreign exchange market, current, capital and financial account; effect of demand management policies (fiscal and monetary) on the external trade balance and exchange rate; exchange rate and foreign exchange market, participants, appreciation/depreciation of exchange rates and its impact on exports/imports and overall economic output, employment and prices; change in cash rate and value of domestic currency.
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