Economics Mega Marathon

Introduction

• The Macro Economics Mega Marathon on August 5, 2024
• Promise to clear all concepts
• Schedule: Chapter 1 and 5 from 6 PM, and Chapter 4 (Money and Inflation) at 10 PM

Macro Economics

Definition

• Macro Economics: Study of the overall economy
• Micro Economics: Study of individual units
  • Example: Individual demand, supply

Components of Macro Economics

• Economic Growth
  • Study of the country’s economic progress and investments
• Inflation and Deflation
  • Inflation: Rising prices
  • Deflation: Falling prices
• Unemployment
  • Different types of unemployment and government responsibility
• Monetary Policy
  • Role of the central bank (RBI)
• Fiscal Policy
  • Study of government expenditure and taxes

Objectives of Macro Economics

1. Economic Growth
2. Full Employment
3. Price Stability
4. Balance of Trade
5. Equitable Income Distribution
6. Sustainable Development

Indicators of Macro Economics

• GDP: Sum of goods and services produced in a year
• Unemployment Rate
• Inflation Rate
• Interest Rate
• Trade Balance

Government Budget

Definition

• Government Budget: Financial statement presented by the government
  • Details of projected revenue and planned expenditure

Components of the Budget

1. Revenue Budget
   • Revenue expenditure and revenue receipts
2. Capital Budget
   • Capital expenditure and capital receipts

Objectives of the Budget

• Economic Stability
• Proper allocation of resources
• Income Redistribution
• Economic Growth
• Fiscal Discipline

Deficit

• Revenue Deficit
• Fiscal Deficit
• Primary Deficit

Conclusion

• Today's session ended, future classes will discuss money and inflation.