Sample Lesson

Economics XII

Introductory Macroeconomics
UNIT-1 INTRODUCTION
 3 Topics
Introduction and structure of macro-economics
Phases of circular flow of income
Circular flow of income in two-sector economy.
UNIT-1 Basic concepts of Macro economics
 5 Topics
Concept of domestic territory
Concept of normal resident
Goods and its type
Transfer income and factor income
Product Method of Calculating National Income
UNIT-1 National income and its related aggregates
 3 Topics
Basic concept of national income
Concept of Depreciation, NFIA and Net indirect taxes
How to solve numerical
UNIT-2 Measurement of national income
11 Topics
National income by expenditure method
Numerical calculation of national income by expenditure method
National income by Income method mathod
Component of Income method
Numerical calculation of national income by income method
National income by Value added method.
Numerical calculation of national income by value added method
Precautions for computation of national income
Treatment of different items in national income
GDP deflator and real GDP and nominal GDP
GDP deflator as a index of welfare and its limitations
UNIT-3 Money
 3 Topics
Barter System of exchange and Introduction of money
Meaning of money and its function
Money supply and Measurement of money supply
UNIT-3 Banking
 5 Topics
Commercial bank and its primary function
Secondary and Other function of commercial bank
Money multiplier and credit creation by commercial bank
Central bank and its function
Credit control function by central bank
UNIT-4 Aggregate demand and its related components
 8 Topics
Aggregate demand and its related components
Consumption function
Investment
saving and saving function
Derivation of saving curve with the help of consumption curve and derivation of consumption curve with the help of saving curve
Agrregate supply
Propensity to consume
Propensity to save and relationship between propensity to save and propensity to comsume
UNIT-4 Income determination and multiplier
 6 Topics
Equilibrium level of income by AD-AS approach.
Equilibrium level of income by S-I approach.
Full employment equilibrium, Under-employment equilibrium and Excess Employment equilibrium
Investment multiplier
working of investment multiplier
numericals
UNIT-4 Excess demand and deficient demand
 5 Topics
Excess demand and its causes
Deficient demand and its causes
effect of Excess demand and deficient demand in the economy
Fiscal policy to correct the problem of excess and deficient demand
Monetary policy to correct the problem of excess and deficient demand
UNIT-5 Government budget and the economy
 3 Topics
Governemet budget and its objective
Component of governemt budget
Revenue receipts and its components
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Propensity to consume

Economics XII UNIT-4 Aggregate demand and its related components Propensity to consume
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