Class name Subject Book title Chapter number Content Created at
Class XII Economics Introductory Macroeconomics 3 to obtain commodities worth Rs 100 from a shop, the value of the paper itself is negligible – certainly less than Rs 100. Similarly, the value of t...
Class XII Economics Introductory Macroeconomics 3 Certificates) where, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks. The word ‘net’ im...
Class XII Economics Introductory Macroeconomics 3 etc. This move received both appreciation and criticism. There were long queues outside banks and ATM booths. The shortage of currency in circulati...
Class XII Economics Introductory Macroeconomics 3 the public, the commercial banks of the country and RBI are responsible for changes in the supply of money in the economy. RBI regulates money supp...
Class XII Economics Introductory Macroeconomics 3 77 – 89, Oxford I University Press, New Delhi. Reprint 2026-27 . The Sum of an Infinite Geometric Series 3 We want to find out the sum of an infini...
Class XII Economics Introductory Macroeconomics 3 2026-27 . Changes in the Composition of the Sources of Monetary Base Over Time 3 Components of Money Stock x d n Table 3.5: Sources of Change in Mo...
Class XII Economics Introductory Macroeconomics 4 Chapter 4 Determination of Income and Employment We have so far talked about the national income, price level, rate of interest etc. in an ad hoc m...
Class XII Economics Introductory Macroeconomics 4 These terms have dual connotations. In Chapter 2 they were used in the accounting sense – denoting actual values of these items as measured by the ...
Class XII Economics Introductory Macroeconomics 4 consumption and income. The simplest consumption function assumes that consumption changes at a constant rate as income changes. Of course, even if...
Class XII Economics Introductory Macroeconomics 4 C=100+0.8Y . This indicates that even when Imagenia does not have any income, its citizens still consume Rs. 100 worth of goods. Imagenia’s autonom...
Class XII Economics Introductory Macroeconomics 4 goods like raw materials. Machines produced in an economy in a given year are not ‘used up’ to produce other goods but yield their services over a ...
Class XII Economics Introductory Macroeconomics 4 the planned supply of final goods. On the other I hand, the expression on the right hand side denotes ex ante or planned aggregate demand for final...
Class XII Economics Introductory Macroeconomics 4 on the right hand side of the accounting identity . At this point, we can introduce a government in this economy. The major economic activities of ...
Class XII Economics Introductory Macroeconomics 4 stage, n we allow the price level to vary and again, analyse macroeconomic equilibrium. o What is the justification for taking the price level as f...
Class XII Economics Introductory Macroeconomics 4 there C, I d are two sources of final demand, t the first is consumption and the I second is investment. The investment function was shown as I = I...
Class XII Economics Introductory Macroeconomics 4 line has the Fig. 4.5 c feature that every point on it m has the same horizontal and ° e Aggregate supply curve with 45 line. vertical coordinates....
Class XII Economics Introductory Macroeconomics 4 investment: we have assumed that investment is c o autonomous. However, it just means that it does not depend on c income. There are a number of va...
Class XII Economics Introductory Macroeconomics 4 is, therefore, the new equilibrium point. The new equilibrium values of output * and aggregate demand are Y and2 AD ,2respectively. Note that in th...
Class XII Economics Introductory Macroeconomics 4 expenditure goes up by (0.8)10, since people spend 0.8 (= mpc) fraction of their additional income on consumption. Hence, in the next round, aggreg...
Class XII Economics Introductory Macroeconomics 4 (0.8) 10 (0.8) 10 (0.8) 10 . . . . . . . . . . . . . . . etc. The increment in equilibrium value of total output thus exceeds the initial increment...
Class XII Economics Introductory Macroeconomics 4 the mps of the economy increases, or, alternatively, the mpc decreases from 0.8 to 0.5. At the * * initial income level of AD 1 = Y 1 250, this sud...
Class XII Economics Introductory Macroeconomics 4 up the infinite series 75 o + (0.5) 75 + (0.5) 75 + ........ ¥ and the total reduction in output turns out m e to be 75 = 150 1– 0.5 But that means...
Class XII Economics Introductory Macroeconomics 4 market reaches its m equilibrium. Aggregate demand for final goods consists of ex ante consumption, u ex ante investment, government spending etc. ...
Class XII Economics Introductory Macroeconomics 4 economy m i is in equilibrium or not (cite reasons). y t e n 6. Explain ‘Paradox of Thrift’. t f ? c m Suggested Readings e 1. Dornbusch, R. and S....
Class XII Economics Introductory Macroeconomics 5 Chapter 5 Government Budget and the Economy We introduced the government in chapter one as denoting the state. We stated that apart from the privat...