Introduction to Macroeconomics

Chapter 1: Introduction

• Circular Flow:
  • Simple Circular Flow
  • Stock Flow
  • Real Flow
  • Money Flow

Chapter 2: Basics of National Income

100-Day Challenge

• Complete all topics in 100 days.
• Playlist structure: Account on Day-1, Account on Day-2, Economics on Day-3.

Domestic Territory

• Definition:

  • Political boundaries of a country.
  • Includes additional income in national income calculation.

• Included in Domestic Territory:

  • Country's boundaries.
  • Ships and aircraft operated by Indian residents.
  • Fishing vessels and floating platforms.
  • Oil and natural gas rigs.
  • Indian embassies and consulates.
  • Military establishments set up abroad.

• Not Included in Domestic Territory:

  • Foreign embassies, consulates, military establishments.

Normal Resident

• Definition:

  • Individuals or institutions residing in a country for more than one year.
  • The economic interest must center in that country.

• Inclusion and Exclusion:

  • Visitors coming for tourism, recreation, medical treatment, study, or conferences are not included.
  • The residence for employees of international organizations is the country where they live.

Main Concepts

• Study of the concept of Domestic Territory.
• Study of the concept of Normal Resident.

Questions and Answers

• Indian officer working in Indian Embassy in the US: Normal Resident.
• Japanese tourist staying in India for two months: Not Normal Resident.
• Australian player in IPL: Not Normal Resident.
• Indian working in UN office: Normal Resident.
• Study questions and discuss via comments.

Pay special attention to these points and practice related questions. If there are any issues, ask in the comments. See you in the next class.