Macroeconomics

Macroeconomics is a part of economics that focuses on how general economies, markets, or different systems that operate on a large scale behave. Macroeconomics concentrates on phenomena like inflation, price levels, rate of economic growth, national income, gross domestic product (GDP) and changes in unemployment.

Chapter 1: Introduction

1. Introduction to Macroeconomics 
2. Basic Concepts of Macroeconomics
3. What is Factor Income and Transfer Income?
4. Consumption Goods and Capital Goods
5. Final Goods and Intermediate Goods
6. What is Net Indirect Tax (NIT)?
7. What is Net Factor Income from Abroad (NFIA)?
8. Circular Flow of Income: Meaning, Phases, Types, and Significance
9. Difference between Real Flow and Money Flow
10. Circular Flow of Income
11. Leakages and Injections in Circular flow of Income

Chapter 2: National Income Accounting

1. National Income and Related Aggregates
2. Domestic Income and Personal Income
3. Private Income: Meaning, Types and Steps
4. Personal, National, and Gross National Disposable Income
5. Difference between Stock and Flow
6. Circular Flow of Income and Methods of Calculating National Income
7. Product or Value Added Method of Calculating National Income
8. Expenditure Method of Calculating National Income
9. Income Method of Calculating National Income
10. Three Methods of calculating National Income: Value added Method, Expenditure Method and Income Method
11. Treatment of Different Items in National Income
12. Treatment of Different Items in Domestic Income
13. National Income at Current Price and Constant Price
14. Difference between Nominal GDP and Real GDP
15. GDP and Welfare
16. GDP Deflator

Chapter 3: Money and Banking

1. What is Barter System and Double Coincidence of Wants?
2. Evolution and Definitions of Money
3. Significance of Money
4. Functions of Money
5. Contingent, Static and Dynamic Functions of Money
6. Classification of Money
7. Demand for Money
8. Monetary System in India
9. Money Supply – Features and Measures
10. Functions of Commercial Bank: Primary Functions and Secondary Functions
11. Commercial Banks: Advantages and Disadvantages
12. Credit Creation
13. Money Multiplier
14. Functions of Central Bank
15. Difference between Commercial Bank and Central Bank

Chapter 4: Determination of Income and Employment

1. Components of Aggregate Demand
2. Explain the Components of Aggregate Supply or National Income.
3. What is Consumption Function (Propensity to Consume)?
4. Types of Propensities to Consume
5. Difference between APC and MPC
6. What is Saving Function (Propensity to Save)?
7. Types of Propensities to Save
8. Difference between APS and MPS
9. Relationship between different propensities (APC, MPC, APS and MPS)
10. Explain the Derivation of Saving Curve from Consumption Curve.
11. Investment Function: Induced Investment, Autonomous Investment and Determinants of Investment
12. Difference between Induced Investment and Autonomous Investment
13. Ex-Ante and Ex-Post Investment
14. Full Employment and Involuntary Unemployment
15. Determination of Equilibrium Level of Income: AD-AS Approach and S-I Approach
16. Aggregate Demand-Aggregate Supply (AD-AS) Approach
17. Saving-Investment (S-I) Approach
18. How can we achieve equilibrium level?
19. What is Investment Multiplier?
20. Explain the working of Investment Multiplier.
21. Short-run Fixed Price Analysis of Product Market
22. What is Excess Demand?
23. What is Deficient Demand?
24. Difference between Excess Demand and Deficient Demand
25. How to control Excess Demand?
26. How to Control Deficient Demand?
27. What are the different measures to control Excess Demand and Deficient Demand?
28. Excess and Deficient Demand in Three-Sector Economy
29. What is Fiscal Policy and how does it correct Excess Demand and Deficient Demand?

Chapter 5: Government Budget and the Economy

• Government Budget and the Economy: Characteristics, Objectives and Components of Budget
• Revenue Receipt and Revenue Expenditure: Meaning and Classification
• Difference between Direct and Indirect Tax
• Capital Receipt and Capital Expenditure: Meaning and Sources of Capital Receipts
• Difference between Revenue Receipt and Capital Receipt
• Difference between Revenue Expenditure and Capital Expenditure
• Measures of Government Deficit: Revenue Deficit, Fiscal Deficit and Primary Deficit
• Difference between Fiscal Deficit and Revenue Deficit
• Difference between Primary Deficit and Fiscal Deficit
• Plan and Non-plan Expenditure
• Developmental and Non-developmental Expenditure

Chapter 6: Open Economy Macroeconomics

• Foreign Exchange Rate: Meaning and Types
• Currency Depreciation and Currency Appreciation
• Types of Foreign Exchange Rate
• Demand and Supply for Foreign Exchange
• Determination of Exchange Rate
• Foreign Exchange Market: Functions and Types
• Fixed Exchange Rate System | Meaning, Methods, Merits and Demerits
• Flexible Exchange Rate System | Meaning, Merits and Demerits
• Managed Floating Exchange Rate System | Meaning, Objectives, Merits and Demerits
• Devaluation of Currency| Reasons, Effects, Example and Critical Evaluation
• Depreciation of Currency | Effects, Examples and Critical Evaluation
• Difference between Devaluation and Depreciation
• Balance of Payment and its Components: Capital and Current Account
• Difference between Current Account and Capital Account of BoP
• Difference between Balance of Payment and Balance of Trade
• Balance of Payments: Surplus and Deficit, Autonomous and Accommodating Transactions, Errors and Omissions

Important Formulas:

Important Formulas in Macroeconomics | Class 12

• CBSE Class 12 Economics Solved Question Paper 2020 – Set 1
• CBSE Class 12 Economics Solved Question Paper 2020 (Set 58/1/2)
• Class 12 Economics Solved Question Paper 2020 (Set 58/1/3)
• CBSE Class 12 Economics Solved Question Paper 2020 – Set 2
• CBSE Class 12 Economics Solved Question Paper 2020 – Set 2 (58/2/2)
• CBSE Class 12 Economics Solved Question Paper 2020 – Set 2 (58/2/3)
• CBSE Class 12 Economics Solved Question Paper 2020 – Set 3
• CBSE Class 12 Economics Solved Question Paper 2020 – Set 3 (58/3/2)
• CBSE Class 12 Economics Solved Question Paper 2020 – Set 3 (58/3/3)
• CBSE Class 12 Economics Solved Question Paper 2020 – Set 4 (Code No. 58/4/1)
• CBSE Class 12 Economics Solved Question Paper 2020 – Set 4 (58/4/2)
• CBSE Class 12 Economics Solved Question Paper 2020 – Set 4 (58/4/3)
• CBSE Class 12 Economics Solved Question Paper 2020 – Set 5 (58/5/1)
• CBSE Class 12 Economics Solved Question Paper 2020 – Set 5 (58/5/2)
• CBSE Class 12 Economics Solved Question Paper 2020 – Set 5 (58/5/3)