Class 12 Macroeconomics is a branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as national income, gross domestic product, unemployment, inflation, etc.
ome of the main topics covered in Class 12 Macroeconomics are:
– Introduction to Macroeconomics and its Concepts: This chapter introduces the basic concepts and variables of macroeconomics such as consumption, investment, government expenditure, exports, imports, etc. It also explains the circular flow of income and the methods of measuring national income.
– National Income and Related Aggregates: This chapter explains the concepts of gross domestic product, net domestic product, gross national product, net national product, personal income, disposable income, etc. It also discusses the various methods of calculating national income such as the product method, the income method, and the expenditure method.
– Money and Banking: This chapter deals with the functions and forms of money, the supply and demand of money, the role of the central bank, the commercial banks, and the money market. It also explains the concepts of money multiplier, credit creation, and monetary policy.
– Aggregate Demand and Its Related Concepts: This chapter analyzes the determinants and components of aggregate demand, such as consumption function, saving function, investment function, etc. It also explains the concepts of marginal propensity to consume, marginal propensity to save, average propensity to consume, average propensity to save, etc.
– National Income Determination and Multiplier: This chapter establishes the relationship between aggregate demand and aggregate supply, and how they determine the equilibrium level of national income and output. It also introduces the concept of multiplier and its working mechanism.
– Excess Demand and Deficient Demand: This chapter examines the situations of excess demand and deficient demand in the economy, and their effects on output, employment, and price level. It also discusses the fiscal and monetary measures to correct these situations and restore the equilibrium.
– Government Budget and the Economy: This chapter explains the objectives and components of the government budget, such as revenue, expenditure, deficit, surplus, etc. It also evaluates the impact of
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