Economics

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ECONOMICS

conimists- 16th and 17th centuries.
hysiocrats (farmers)
ercantalists (traders)

Father of Economics/ Father of the classical school of economic thought- Adam Smith (In 1776, he wrote 'An enquiry into the nature and causes of the Wealth of Nations') According to Smith, self interest was an invisible hand which would work for the common benefit of the community.

The Great Depression of 1929 was a phase in which supply exceeded demand. John Maynard Keynes (a British economist) helped overcome the great depression. He created jobs by asking people to dig up trenches (and fill them up). This resulted in an increase in income - increase in demand- production and supply increase Keynes also suggested 'Pump Priming' which meant investment in infrastructure. This , he said would rovide jobs

e long term
abour intensive
elpful
se capital of one's country. nobody else would be investing
In 1936, Keynes introduced his 'General Theory of employment interest and money'

NOBEL PRIZE :
agnar Frisch (coined the term 'macro' and 'micro' economics) AND Jon Tinberger 970- Paul Samuelson
987- Amartya Sen
Chief Economic Advisor- Raghuram Rajan
Father of Micro Economics- Alfred Marshall

MICRO AND MACRO ECONOMICS

MICRO ECONOMICSMACRO ECONOMICS
FatherAlfred MarshallJohn Maynard Keynes
TheoryPrice TheoryIncome Theory
MethodSlicing Method (Worm's eye view)Lumping Method (Bird's eye view) Deals withDemand and supplyProduction and Income
DefinitionIndividual economic behaviour of a person/individual/ firm/industryAggregate of economic behaviour of a nation Deals withPartial EquilibriumGeneral Equilibrium
Based onSeveral assumptions (ceteris parabus- all things remaining constant )Not based on any assumptions

Syllabus from Notes (On demand):
emand- definition
eatures of demand
haracteristics of demand
aw of demand
tatement of law
chedule of the law
emand curve
ssumptions of the law
xceptions of the law
lasticity of...
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