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Balance of Payment – CBSE Notes for Class 12 Macro Economics Introduction This chapter gives a detailed account of balance of payment of an economy, it structure and categorisation into current and capital account. Thereafter explaining balance of trade and its differences with the balance of payment, autonomous items, accommodating items and their differences, disequilibrium [...]
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Foreign Exchange Rate – CBSE Notes for Class 12 Macro Economics Foreign Exchange And Its Related Concepts 1. Foreign exchange refers to all the currencies of the rest of the world other than the domestic currency of the country. For example, in India, US dollar is the foreign exchange. 2. The rate at which one [...]
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Government Budget and the Economy – CBSE Notes for Class 12 Macro Economics Introduction This is a descriptive chapter on government budget of Indian economy, wherein its objectives, importance, types, components, budget deficits and its types (Revenue, Fiscal, Primary Deficit) and their implications are studied. Chapter at a Glance Government Budget And Its Related Concepts [...]
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Excess Demand and Deficient Demand – CBSE Notes for Class 12 Macro Economics Excess Demand And Its Related Concepts 1. Excess Demand and Inflationary Gap: (a) When in an economy, aggregate demand exceeds “aggregate supply at full employment level”, the demand is said to be an excess demand. (b) Inflationary gap is the gap showing [...]
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National Income Determination and Multiplier – CBSE Notes for Class 12 Macro Economics Introduction This chapter is a numerical determination of national income under Aggregate demand— Aggregate supply and Saving—Investment approach. Concept of Multiplier, based numerical on it and its working is also highlighted. National Income Determination Under Aggregate Demand And Supply Approach And Saving, [...]
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Aggregate Demand and Its Related Concepts – CBSE Notes for Class 12 Macro Economics Aggregate Demand, Aggregate Supply And Three Components 1. Aggregate Demand: (a) Aggregate demand refers to the total demand for final goods and services in an economy during an accounting year. (b) Aggregate demand is aggregate expenditure on ex-ante (planned) consumption and [...]
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Banking – CBSE Notes for Class 12 Macro Economics Introduction: This is a textual description of commercial bank, credit creation by commercial bank, central bank and its functions. Commercial Bank And Credit Creation By Commercial Bank 1. Commercial bank is a financial institution which performs the functions of accepting deposits from the public and making [...]
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Money – CBSE Notes for Class 12 Macro Economics Barter System And Its Difficulties, Money And Functions Of Money: 1. Barter system of exchange is a system in which goods are exchanged for goods. 2. For example, wheat may be exchanged for cloth; house for horses, etc., or a teacher may be paid wheat or [...]
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National Income and Related Aggregates – CBSE Notes for Class 12 Macro Economics Introduction: This is a numerical based chapter to calculate national income by different methods (Income, expenditure and value added method, their steps and precautions). Numerically to determine private income, personal income, personal disposable income, National disposable income (net and gross) and their [...]
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Introduction to Macroeconomics and its Concepts – CBSE Notes for Class 12 Macro Economics Introduction And Structure Of MacroEconomics: 1. Macroeconomics is the part of economic theory that studies the economy as a whole, such as national income, aggregate employment, general price level, aggregate consumption, aggregate investment, etc. Its main instruments are aggregate demand and [...]