Introduction Macroeconomics New NCERT XII Class (Original Book) English Medium

Introduction Macroeconomics New NCERT XII Class (Original Book) English Medium

Total Booklets :- 110

Table of Contents
FOREWORD iii
1. INTRODUCTION 1
1.1 Emergence of Macroeconomics 5
1.2 Context of the Present Book of Macroeconomics 6
2. NATIONAL INCOME ACCOUNTING 9
2.1 Some Basic Concepts of Macroeconomics 9
2.2 Circular Flow of Income and Methods of
Calculating National Income 14
2.2.1 The Product or Value Added Method 17
2.2.2 Expenditure Method 21
2.2.3 Income Method 22
2.2.4 Factor Cost, Basic Prices and Market Prices 24
2.3 Some Macroeconomic Identities 25
2.4 Nominal and Real GDP 29
2.5 GDP and Welfare 30
3. MONEY AND BANKING 36
3.1 Functions of Money 36
3.2 Demand for Money and Supply of Money 37
3.2.1 Demand for Money 37
3.2.2 Supply of Money 38
3.3 Money Creation by Banking System 39
3.3.1 Balance Sheet of a Fictional Bank 40
3.3.2 Limits to Credit Creation and Money Multiplier 40
3.4 Policy Tools to Control Money Supply 42
4. DETERMINATION OF INCOME AND EMPLOYMENT 53
4.1 Aggregate Demand and its Components 53
4.1.1 Consumption 54
4.1.2 Investment 56
4.2 Determination of Income in Two-sector Model 56
4.3 Determination of Equilibrium Income in the Short Run 57
4.3.1 Macroeconomic equilibrium with price level fixed 57
4.3.2 Effect of an autonomous change in aggregate
demand on income and output

4.3.3 The Multiplier Mechanism 61
4.4 Some More Concepts 64
5. GOVERNMENT BUDGET AND THE ECONOMY 66
5.1 Government Budget – Meaning and its Components 66
5.1.1 Objectives of Government Budget 67
5.1.2 Classification of Receipts 68
5.1.3 Classification of Expenditure 69
5.2 Balanced, Surplus and Deficit Budget 70
5.2.1 Measures of Government Deficit 71
6. OPEN ECONOMY MACROECONOMICS 85
6.1 The Balance of Payments 86
6.1.1 Current Account 86
6.1.2 Capital Account 88
6.1.3 Balance of Payments Surplus and Deficit 88
6.2 The Foreign Exchange Market 91
6.2.1 Foreign Exchange Rate 91
6.2.2 Determination of the Exchange Rate 92
6.2.3 Merits and Demerits of Flexible and Fixed
Exchange Rate Systems 95
6.2.4 Managed Floating 95
GLOSSARY