public class Category
{
    public int CategoryId { set; get; }
    public string CategoryName { set; get; }

    [JsonIgnore]
    public IList<Product> Products { set; get; }
}


public class Product
{
    public int ProductId { set; get; }
    public string ProductName { set; get; }
}

namespace AngularTemplateDrivenFormsLab.Controllers
{
    [Route("api/[controller]")]
    public class ProductController : Controller
    {
        [HttpGet("[action]")]
        public async Task<IActionResult> GetCategories()
        {
            await Task.Delay(500);

            return Json(CategoriesDataSource.Items);
        }

        [HttpGet("[action]/{categoryId:int}")]
        public async Task<IActionResult> GetProducts(int categoryId)
        {
            await Task.Delay(500);

            var products = CategoriesDataSource.Items
                            .Where(category => category.CategoryId == categoryId)
                            .SelectMany(category => category.Products)
                            .ToList();
            return Json(products);
        }
    }
}

 >ng g m Product -m app.module --routing

 >ng g c product/product-group

>ng g cl product/product
>ng g cl product/Category
>ng g cl product/product-group-form

export class ProductGroupForm {
  constructor(
    public categoryId?: number,
    public productId?: number
  ) { }
}

export class Product {
  constructor(
    public productId: number,
    public productName: string
  ) { }
}

export class Category {
  constructor(
    public categoryId: number,
    public categoryName: string
  ) { }
}

 >ng g s product/product-items -m product.module

import { Injectable } from "@angular/core";
import { Http, Response, Headers, RequestOptions } from "@angular/http";

import { Observable } from "rxjs/Observable";
import "rxjs/add/operator/do";
import "rxjs/add/operator/catch";
import "rxjs/add/observable/throw";
import "rxjs/add/operator/map";
import "rxjs/add/observable/of";

import { Category } from "./category";
import { Product } from "./product";

@Injectable()
export class ProductItemsService {

  private baseUrl = "api/product";

  constructor(private http: Http) { }

  private handleError(error: Response): Observable<any> {
    console.error("observable error: ", error);
    return Observable.throw(error.statusText);
  }

  getCategories(): Observable<Category[]> {
    return this.http
      .get(`${this.baseUrl}/GetCategories`)
      .map(response => response.json() || {})
      .catch(this.handleError);
  }

  getProducts(categoryId: number): Observable<Product[]> {
    return this.http
      .get(`${this.baseUrl}/GetProducts/${categoryId}`)
      .map(response => response.json() || {})
      .catch(this.handleError);
  }
}

export class ProductGroupComponent implements OnInit {

  categories: Category[] = [];
 model = new ProductGroupForm();

  constructor(private productItemsService: ProductItemsService) { }

  ngOnInit() {
    this.productItemsService.getCategories().subscribe(
      data => {
        this.categories = data;
      },
      err => console.log("get error: ", err)
    );
  }

<div class="container">
  <h3>Cascading Drop-down Lists</h3>
  <form #form="ngForm" (submit)="submitForm(form)" novalidate>
    <div class="form-group">
      <label class="control-label">Category</label>
      <span class="glyphicon glyphicon-refresh glyphicon-spin spinner" *ngIf="categories.length == 0"></span>
      <select class="form-control" name="categoryCtrl" #categoryCtrl (change)="fetchProducts(categoryCtrl.value)"
        [(ngModel)]="model.categoryId">
        <option value="undefined">Select a Category...</option>
        <option *ngFor="let category of categories" value="{{category.categoryId}}">
          {{ category.categoryName }}
        </option>
      </select>
    </div>

  products: Product[] = [];
  isLoadingProducts = false;

  fetchProducts(categoryId?: number) {
    console.log(categoryId);

    this.products = [];

    if (categoryId === undefined || categoryId.toString() === "undefined") {
      return;
    }

    this.isLoadingProducts = true;
    this.productItemsService.getProducts(categoryId).subscribe(
      data => {
        this.products = data;
        this.isLoadingProducts = false;
      },
      err => {
        console.log("get error: ", err);
        this.isLoadingProducts = false;
      }
    );
  }

 <option value="undefined">Select a Category...</option>

 public categoryId?: number

 model = new ProductGroupForm();

    <div class="form-group">
      <label class="control-label">Product</label>
      <span class="glyphicon glyphicon-refresh glyphicon-spin spinner" *ngIf="isLoadingProducts"></span>
      <select class="form-control" name="productCtrl" [(ngModel)]="model.productId">
        <option value="undefined">Select a Product...</option>
        <option *ngFor="let product of products" value="{{product.productId}}">
          {{ product.productName }}
        </option>
      </select>
    </div>

/* Spinner */
.spinner {
  font-size:15px;
  z-index:10
}

.glyphicon-spin {
    -webkit-animation: spin 1000ms infinite linear;
    animation: spin 1000ms infinite linear;
}
@-webkit-keyframes spin {
    0% {
        -webkit-transform: rotate(0deg);
        transform: rotate(0deg);
    }
    100% {
        -webkit-transform: rotate(359deg);
        transform: rotate(359deg);
    }
}
@keyframes spin {
    0% {
        -webkit-transform: rotate(0deg);
        transform: rotate(0deg);
    }
    100% {
        -webkit-transform: rotate(359deg);
        transform: rotate(359deg);
    }
}

>npm install
>ng build --watch

>dotnet restore
>dotnet watch run