Class name Subject Book title Chapter number Content Created at
Class XII Economics Introductory Macroeconomics 1 is not from the benevolence of the butcher, the brewer, of the baker, that we expect our dinner, but from their regard to their own interest. We ad...
Class XII Economics Introductory Macroeconomics 1 go beyond economic objectives and try to direct the deployment of economic resources for such public needs as we have listed above. Such activities...
Class XII Economics Introductory Macroeconomics 1 25 per cent (unemployment rate may be defined as the number of people who are not working and are looking for jobs divided by the total number of p...
Class XII Economics Introductory Macroeconomics 1 the product in t the market. The money that is earned is called revenue . Part of the I revenue is paid out as rent for the service rendered by lan...
Class XII Economics Introductory Macroeconomics 1 of land does not exist; the land may belong to the whole tribe. In such societies the analysis that we shall present in this book will not be appli...
Class XII Economics Introductory Macroeconomics 1 which is called the household sector. By a household we mean a single individual who takes decisions relating to her own consumption, or a group of...
Class XII Economics Introductory Macroeconomics 1 of the economy, assuming that the rest of the economy remains the same. Macroeconomics emerged as a separate subject in the 1930s due to Keynes. Th...
Class XII Economics Introductory Macroeconomics 2 National Income Accounting In this chapter we will introduce the fundamental functioning of a simple economy. In section 2.1 we describe some prima...
Class XII Economics Introductory Macroeconomics 2 generating a flow of production and how, as a consequence, income and wealth are generated from that process. Let us now dwell upon this flow of pr...
Class XII Economics Introductory Macroeconomics 2 do we call this a final good? Because once it has been sold it passes out of the active economic flow. It will not undergo any further transformati...
Class XII Economics Introductory Macroeconomics 2 get transformed in the production process. They are also final goods yet they are not final goods to be ultimately consumed. Unlike the final goods...
Class XII Economics Introductory Macroeconomics 2 don’t end up in final consumption and are not capital goods either. Such goods may be used by other producers as material inputs. Examples are stee...
Class XII Economics Introductory Macroeconomics 2 of stocks and flows. u Often we hear statements like the average salary of someone is Rs 10,000 or the i g output of the steel industry is so many ...
Class XII Economics Introductory Macroeconomics 2 can be measured over specific time periods. A particular machine can be part of the capital stock for many years (unless it wears out); but that ma...
Class XII Economics Introductory Macroeconomics 2 So new addition to capital stock in an economy is measured by net investment o or new capital formation, which is expressed as c Net Investment = G...
Class XII Economics Introductory Macroeconomics 2 thousands of enterprises with widely varying periods of life of their equipment, in any particular year, some enterprises are actually making the b...
Class XII Economics Introductory Macroeconomics 2 therefore would help in the greater production of consumer goods. N But aren’t we contradicting ourselves? Earlier we have seen how, of the total t...
Class XII Economics Introductory Macroeconomics 2 all goods and services that are produced for the market, the crucial factor enabling such sale is demand for such products backed by purchasing pow...
Class XII Economics Introductory Macroeconomics 2 – without a government, external trade or o any savings – may function. The households receive their payments from the a M firms for productive act...
Class XII Economics Introductory Macroeconomics 2 consumption expenditure that they receive as sales revenue. In the next period the firms will once again produce goods Fig. 2.1: Circular Flow of I...
Class XII Economics Introductory Macroeconomics 2 goods and services, the firms will produce more goods and services to meet this extra demand. Since they will produce more, the firms must also pay...
Class XII Economics Introductory Macroeconomics 2 describes the functioning of an imaginary o economy is called a macroeconomic model. It is clear that a model does o not describe an actual economy...
Class XII Economics Introductory Macroeconomics 2 and services produced by all the firms in an economy? The following example will help us to understand. Let us suppose that there are only two kind...
Class XII Economics Introductory Macroeconomics 2 If we do not do this we shall commit the mistake of ‘double counting’. This is because Rs 50 worth of wheat will be counted twice. First it will be...
Class XII Economics Introductory Macroeconomics 2 example and make it more realistic and complicated. For example, the farmer may be using fertilisers or pesticides to produce wheat. The value of t...