Class name Subject Book title Chapter number Content Created at
Class XII Economics Introductory Macroeconomics 2 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 counted ...
Class XII Economics Introductory Macroeconomics 2 it more realistic and complicated. For example, the farmer may be using fertilisers or pesticides to produce wheat. The value of these inputs will ...
Class XII Economics Introductory Macroeconomics 2 so happen that a firm had some initial unsold stock to begin with. During the year that follows it has produced very little. But it has met the dem...
Class XII Economics Introductory Macroeconomics 2 when x = 2) and not always. We cannot write 2 × x ≡ 4. Observe that since production of the firm ≡ value added + intermediate goods used by the fir...
Class XII Economics Introductory Macroeconomics 2 anticipated. Hence there will be unplanned accumulation of inventories. In the opposite case where there is unexpected rise in the sales there will...
Class XII Economics Introductory Macroeconomics 2 firm. This rise is an example of planned accumulation of inventories. On the other hand if the firm had wanted to reduce the inventories from 100 t...
Class XII Economics Introductory Macroeconomics 2 of NNP which actually accrues to the factors of production. Similarly, there may be subsidies granted by the government on the prices of some commo...
Class XII Economics Introductory Macroeconomics 2 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 aggregate amount of goods a...
Class XII Economics Introductory Macroeconomics 2 add up all these values, which means aggregate consumption for this economy will be given by C = c1 +c 2+ ..+ c1000 The summation notation, however...
Class XII Economics Introductory Macroeconomics 2 the final investment expenditure, I , incurred by other firms on the capital goods produced i by firm i. Observe that unlike the expenditure on int...
Class XII Economics Introductory Macroeconomics 2 the domestic firms. Similarly, let I – Imstand for that part of aggregate final investment expenditure that is spent on domestic firms, where I is ...
Class XII Economics Introductory Macroeconomics 2 They have to pay taxes from PI. If we deduct the Personal Tax Payments (income tax, for example) and Non-tax Payments (such as fines) from PI, we o...
Class XII Economics Introductory Macroeconomics 2 the expenditure method. It may i be noted that out of the five variables on the right hand side, investment o expenditure, I, is the most unstable....
Class XII Economics Introductory Macroeconomics 2 different expressions of the same variable, namely GDP, we may represent the equivalence by Fig. 2.2. Now, let us look at a numerical example X – M...
Class XII Economics Introductory Macroeconomics 2 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 and B) and to...
Class XII Economics Introductory Macroeconomics 2 Therefore in order to r arrive at market prices we have to add product taxes (less product subsidies) to a the basic prices. M As stated above, now...
Class XII Economics Introductory Macroeconomics 2 foreigners who are working within our domestic economy, or the payments to the factors of production owned by the foreigners. For example, the prof...
Class XII Economics Introductory Macroeconomics 2 the world. Table 2.4: Basic National Income Aggregates 5 1. Gross Domestic • GDP is the market value of all final goods Product at Market and servi...
Class XII Economics Introductory Macroeconomics 2 switching to new aggregates. India shifted Reprint 2026-27 5. Gross National • GNP MP is the value of all the final goods and services that are pro...
Class XII Economics Introductory Macroeconomics 2 N OMINAL AND R EAL GDP One implicit assumption in all this discussion is that the prices of goods and services do not change during the period of o...
Class XII Economics Introductory Macroeconomics 2 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 moved from the ...
Class XII Economics Introductory Macroeconomics 2 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 express the la...
Class XII Economics Introductory Macroeconomics 2 consumers. Like CPI, the index for wholesale prices is called Wholesale Price Index (WPI). In countries like USA it is referred to as Producer Pric...
Class XII Economics Introductory Macroeconomics 2 beconcentratedinthehandsofveryfewindividualsorfirms.Fortherest,the incomemayinfacthavefallen.Insuchacasethewelfareoftheentirecountry cannot be said...
Class XII Economics Introductory Macroeconomics 2 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 used by the refin...