Class name Subject Book title Chapter number Content Created at
Class XII Economics Introductory Macroeconomics 2 Conversely, it may so happen that a firm had some initial unsold stock to begin with. During the year that follows it has produced very little. But...
Class XII Economics Introductory Macroeconomics 2 of x, (namely when x = 2) and not always. We cannot write 2 × x ≡ 4. Observe that since production of the firm ≡ value added + intermediate goods u...
Class XII Economics Introductory Macroeconomics 2 it had not anticipated. Hence there will be unplanned accumulation of inventories. In the opposite case where there is unexpected rise in the sales...
Class XII Economics Introductory Macroeconomics 2 planned by the firm. This rise is an example of planned accumulation of inventories. On the other hand if the firm had wanted to reduce the invento...
Class XII Economics Introductory Macroeconomics 2 earnings of the foreigners who are working within our domestic economy, or the payments to the factors of production owned by the foreigners. For e...
Class XII Economics Introductory Macroeconomics 2 Depreciation of the firm i (Di) If we sum the gross value added of all the firms of the economy in a year, we get a measure of the value of aggrega...
Class XII Economics Introductory Macroeconomics 2 we have to add up all these values, which means aggregate consumption for this economy will be given by C = c1 +c 2+ ..+ c1000 The summation notati...
Class XII Economics Introductory Macroeconomics 2 their employees (b) the final investment expenditure, I , incurred by other firms on the capital goods produced i by firm i. Observe that unlike th...
Class XII Economics Introductory Macroeconomics 2 is spent on the domestic firms. Similarly, let I – Imstand for that part of aggregate final investment expenditure that is spent on domestic firms,...
Class XII Economics Introductory Macroeconomics 2 calculate that part of NNP which actually accrues to the factors of production. Similarly, there may be subsidies granted by the government on the ...
Class XII Economics Introductory Macroeconomics 2 GDP according to the expenditure method. It may i be noted that out of the five variables on the right hand side, investment o expenditure, I, is t...
Class XII Economics Introductory Macroeconomics 2 and (2.6) are different expressions of the same variable, namely GDP, we may represent the equivalence by Fig. 2.2. Now, let us look at a numerical...
Class XII Economics Introductory Macroeconomics 2 B Wages 20 60 Profits 30 90 Recall that GDP by income method = sum total of factor incomes, which is equal to total wages received (workers of A an...
Class XII Economics Introductory Macroeconomics 2 (less product subsidies). Therefore in order to r arrive at market prices we have to add product taxes (less product subsidies) to a the basic pric...
Class XII Economics Introductory Macroeconomics 2 have complete say. They have to pay taxes from PI. If we deduct the Personal Tax Payments (income tax, for example) and Non-tax Payments (such as f...
Class XII Economics Introductory Macroeconomics 2 the rest of the world. Table 2.4: Basic National Income Aggregates 5 1. Gross Domestic • GDP is the market value of all final goods Product at Mark...
Class XII Economics Introductory Macroeconomics 2 countries are now switching to new aggregates. India shifted Reprint 2026-27 5. Gross National • GNP MP is the value of all the final goods and ser...
Class XII Economics Introductory Macroeconomics 2 Reprint 2026-27 2.4 N OMINAL AND R EAL GDP One implicit assumption in all this discussion is that the prices of goods and services do not change du...
Class XII Economics Introductory Macroeconomics 2 be called the base year) will be 110 × Rs 10 = Rs 1,100. Notice that the ratio of nominal GDP to real GDP gives us an idea of how the prices have m...
Class XII Economics Introductory Macroeconomics 2 purchase of a given basket of commodities in the base year. We also calculate the cost of purchase of the same basket in the current year. Then we ...
Class XII Economics Introductory Macroeconomics 2 purchased by ordinary consumers. Like CPI, the index for wholesale prices is called Wholesale Price Index (WPI). In countries like USA it is referr...
Class XII Economics Introductory Macroeconomics 2 is rising, thewelfaremaynotriseasaconsequence.ThisisbecausetheriseinGDPmay beconcentratedinthehandsofveryfewindividualsorfirms.Fortherest,the incom...
Class XII Economics Introductory Macroeconomics 2 of the refinery is A the amount of oil it refines. We can estimate the value added of the refinery c by deducting the value of intermediate goods u...
Class XII Economics Introductory Macroeconomics 2 three methods (a) measuring the aggregate value of factor payments (income method) (b) measuring the aggregate value of goods and services produced...
Class XII Economics Introductory Macroeconomics 2 by households Transfer payments to the Personal Income (PI) households from the government and firms Personal tax payments Non-tax payments Persona...