Introduction To Macroeconomics

The field of macroeconomics is one of the most interesting and fiercely disputed in all of economics. The business cycle, inflation, and unemployment are only some of the macroeconomic issues discussed. These are some of economics’ most fundamental problems. The social, political, and economic consequences of governments’ attempts to solve them via economic policy are substantial. Thus, macroeconomic disputes are contentious, sometimes veering into extremely political and technical territory. This book presents both Keynesian & neoclassical versions of simple macroeconomic models, reflecting the contested nature of the field. This accomplishes two goals: it introduces the long-standing divide in macroeconomics, and it facilitates an educated debate of the differences between market clearing (neoclassical) and Keynesian models. This book demonstrates how different models can help clarify critical macroeconomic concerns. The standard view of neoclassical economists is that the macroeconomy would automatically and smoothly reach a state of full employment if market forces are allowed to function freely. This book’s major goal is to use simple graphs, rather than advanced mathematics, to demonstrate that rival theories are rational constructions with distinct underlying premises. secondary goal is to present Indian instances and explain the thought processes behind fundamental ideas.