Mastering the big picture of the economy? Our blog post unpacks the Class 12 Macroeconomics syllabus, covering national income, money & banking, government's role, and more! Get ready to dive into economic concepts that shape our world. ECONOMICS SYLLABUS OF CLASS - XII 2024-25 PartsUnitsMarksPeriodsPart AIntroductory MacroeconomicsNational Income and Related Aggregates 1030Money and Banking 0615Determination of Income and Employment 1230Government Budget and the Economy 0617Balance of Payments 061840syllabus of Macroeconomics class 12 Unit 1: National Income and Related Aggregates - Syllabus of Macroeconomics class 12 What is Macroeconomics? Basic concepts in macroeconomics: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation. Circular flow of income (two sector model); Methods of calculating National Income - Value Added or Product method, Expenditure method, Income method. Aggregates related to National Income: Gross National Product (GNP), Net National Product (NNP), Gross Domestic Product, (GDP) and Net Domestic Product (NDP) - at market price, at factor cost; Real and Nominal GDP, GDP Deflator, GDP and Welfare. Unit 2: Money and Banking - Syllabus of Macroeconomics class 12 Money – meaning and functions, supply of money - Currency held by the public and net demand deposits held by commercial banks. Money creation by the commercial banking system. Central bank and its functions (example of the Reserve Bank of India): Bank of issue,Govt. Bank, Banker's Bank, Control of Credit through Bank Rate, Cash Reserve Ratio(CRR), Statutory Liquidity Ratio (SLR), Repo Rate and Reverse Repo Rate, OpenMarket Operations, Margin requirement. Unit 3: Determination of Income and Employment - Syllabus of Macroeconomics class 12 Aggregate demand and its components. Propensity to consume and propensity to save (average and marginal). Short-run equilibrium output; investment multiplier and its mechanism. Meaning of full employment and involuntary unemployment. Problems of excess demand and deficient demand; measures to correct them - changes in government spending, taxes and money supply. Unit 4: Government Budget and the Economy - Syllabus of Macroeconomics class 12 Government budget - meaning, objectives and components. Classification of receipts - revenue receipts and capital receipts; Classification of expenditure – revenue expenditure and capital expenditure. Balanced, Surplus and Deficit Budget – measures of government deficit. Unit 5: Balance of Payments - Syllabus of Macroeconomics class 12 Balance of payments account - meaning and components; Balance of payments – Surplus and Deficit Foreign exchange rate - meaning of fixed and flexible rates and managed floating. Determination of exchange rate in a free market, Merits and demerits of flexible and fixed exchange rate. Managed Floating exchange rate system
