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CBSE Class 12 Macroeconomics Notes

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  • Last Updated : 02 Feb, 2023
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Macroeconomics deals with the study of the national economy as a whole. In Class 11th notes, we covered the study of individuals through microeconomics, now we will learn about the whole economy through Macroeconomics. GeeksforGeeks has designed Notes for Cass 12 Macroeconomics in a way that provides detailed knowledge about the subject and the related topics. The notes of Macroeconomics contain six chapters covering important topics, like National Income, Circular Flow of Income, Balance of Payment, Government Budget, and many more. 

 

Chapter 1: Introduction

The first chapter, ‘Introduction’ of Class 12 Macroeconomics notes gives a brief introduction to macroeconomics and the important terms used in this field of study. 

Chapter 2: National Income Accounting

National Income is the total amount of income generated by a country with the production of goods and services throughout a financial year. The second chapter, ‘National Income Accounting’ of Class 12 Macroeconomics covers detailed information about national income and related topics. The notes of this chapter consist of important topics, like Stock, Flow, Methods of Calculating National Income, National Income Aggregates, GDP, and many more. The learners can gain knowledge about National Income through the quick links mentioned below.

Chapter 3: Money and Banking

Money is usually accepted as a measure of exchange, besides other things, and plays a major role in the functioning of an economy. The third chapter of Class 12 Macroeconomics ‘Money and Banking’ covers important topics, like Functions of Money, Money Supply, Money Creation, Central Bank and Commercial Banks. 

Chapter 4: Determination of Income and Employment

The notes of the fourth chapter of Class 12 Macroeconomics ‘Determination of Income and Employment’ contains detailed information about important topics, like Aggregate Demand, Income in Two-Sector Model, Equilibrium Income, Multiplier, Autonomous Change and related topics. 

  • Components of Aggregate Demand
  • Aggregate Supply
  • Consumption Function
  • Types of Propensities to Consume
  • Difference between APC and MPC
  • Saving Function
  • Types of Propensities to Save
  • Difference between APS and MPS
  • Relationship between different propensities
  • Derivation of Saving Curve from Consumption Curve
  • Investment Function
  • Difference between Induced Investment and Autonomous Investment
  • Ex-ante and Ex-post Saving and Investment
  • Full Employment and Involuntary Unemployment
  • Determination of Equilibrium Level of Income 
  • Aggregate Demand-Aggregate Supply (AD-AS) Approach
  • Saving-Investment (S-I) Approach
  • How can we acheive equilibrium level?
  • Investment Multiplier
  • Working of Multiplier
  • Short-run fixed price analysis of product market
  • Excess Demand
  • Deficient Demand
  • Difference between Excess Demand and Deficient Demand
  • Measures to control Excess Demand and Deficient Demand
  • Excess and Deficient Demand in Three-Sector Economy
  • What is Fiscal Policy and how does it correct Excess Demand and Deficient Demand?
  • Trade Cycle

Chapter 5: Government Budget and the Economy

A budget means planning in advance how to spend a given amount of money during a specific time period. Preparation of a budget is essential for everyone, whether it is a household, business or government. The fifth chapter of Class 12 Macroeconomics, ‘Government Budget and the Economy’, covers detailed information about the Objectives and Components of the Government Budget, the Classification of Receipts and Expenditure, and the Measures of the Government Budget. 

Chapter 6: Balance of Payments

Every country has receipts and payments to and from the outside world of that country, and it is essential to record those transactions. Balance of Payments is the statement that contains all of these transactions and helps an economy in determining its economic condition during a financial year. The notes of the last chapter of Class 12 Macroeconomics, ‘Balance of Payment’ cover everything required to know about Balance of Payment. It consists of important topics, like Capital and Current Account, Balance of Trade, Surplus, Deficit, and Balanced BOP, Foreign Exchange Rate, Foreign Exchange Market and Determination of Foreign Exchange Rate. 


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