Elective Introductory Macroeconomics
Introductory Macroeconomics notes
9 chapter notes, in syllabus order. Each starts with the key points.
Unit 1
Macroeconomics: Scope, Goals, Methods & Key DifferencesUnit 1 of Introductory Macroeconomics introduces the study of national economies, distinguishing it from microeconomics, explaining its core goals (growth, stability, full employment), and analyzing the tools economists use to measure and influence aggregate outcomes—with real-world applications in Nepal’s economy and 10 min readUnit 2
National Income: Measurement, Methods & GDP AnalysisUnit 2 of Introductory Macroeconomics covers how economists measure national income (GDP, GNP, NNP), the three approaches (production, income, expenditure), circular flow of income, and real-world applications in Nepal’s economy (e.g., NEPSE stock market, Ncell’s revenue, and government budgeting).13 min readUnit 3
Consumption and Investment · note coming
Unit 4
Income Determination: Equilibrium, Multipliers, and Real-World ApplicationsUnit 4 of Introductory Macroeconomics explores how national income is determined through equilibrium in the goods and money markets, the role of multipliers (investment, government, and foreign trade), and how these concepts apply to Nepal’s economy (e.g., NEPSE stock market, Ncell’s demand for labor, or Khalti’s trans10 min readUnit 5
Money, Banking, and Financial Markets: Roles, Functions & PolicyUnit 5 of Introductory Macroeconomics explores the role of money as a medium of exchange, store of value, and unit of account, the structure and functions of commercial and central banks, how financial markets allocate resources, and the tools of monetary policy—with real-world examples from Nepal’s banking sector, eSe18 min readUnit 6
Inflation: Causes, Types, Effects & PoliciesUnit 6 of Introductory Macroeconomics covers inflation—its definitions, types (demand-pull, cost-push, built-in), measurement (CPI, WPI), causes, effects (positive/negative), and policy responses (monetary/fiscal). Includes real-world examples from Nepal (Nepal Rastra Bank, NEPSE) and global firms (Google, WhatsApp).16 min readUnit 7
Unemployment: Types, Causes, Costs & PoliciesUnit 7 of Introductory Macroeconomics explores unemployment—its definitions, types (frictional, structural, cyclical, seasonal), measurement (labor force survey, NPLFS), costs (economic and social), and policy responses (active vs. passive labor market policies). Real-world examples from Nepal (NTC job cuts, Pathao dri12 min readUnit 8
Fiscal Policy: Tools, Effects & Nepal’s BudgetUnit 8 of Introductory Macroeconomics explores fiscal policy—how governments use taxation, spending, and borrowing to stabilize economies, with real-world applications in Nepal’s budget, COVID-19 stimulus, and inflation control.15 min readUnit 9
Monetary Policy: Tools, Transmission, and Real-World ImpactUnit 9 of Introductory Macroeconomics explores how central banks (like Nepal Rastra Bank) use monetary policy tools—open market operations, reserve requirements, and interest rates—to control money supply, inflation, and economic growth, with real-world examples from Nepal’s banking sector and global platforms like Wha8 min readUnit 10
International Trade & Balance of Payments: Theory, Tools & Nepal’s RoleUnit 10 of Introductory Macroeconomics explores the mechanics of international trade (comparative advantage, trade barriers, terms of trade), the balance of payments (current account, capital account, official reserves), exchange rates (fixed vs. floating, PPP), and Nepal’s trade policies—with real-world examples from 13 min read