Economics Class 12

Meaning of macroeconomics, difference from microeconomics, circular flow of income, economic agents and sectors

GDP, GNP, NNP, NI, PI, DI; methods of measurement — output, income and expenditure; real vs nominal GDP

Functions and supply of money, money creation by banks, credit multiplier, RBI and its functions, monetary policy tools

Aggregate demand and supply, consumption and investment functions, equilibrium output, multiplier effect

Government budget, components, types of receipts and expenditure, fiscal deficit, revenue deficit, primary deficit, fiscal policy

Balance of payments, current and capital account, foreign exchange market, exchange rate systems, managed floating

Full employment and under-employment equilibrium, inflationary and deflationary gap, excess and deficient demand, remedies

Meaning of AD, consumption function, APC, MPC, savings function, APS, MPS, investment and government spending

Concept of multiplier, relationship with MPC and MPS, working of multiplier, leakages, importance in income determination

Colonial exploitation, state of agriculture, industry and foreign trade before 1947, demographic conditions, infrastructure

Goals of Five Year Plans, agriculture (Green Revolution), industry (licensing, PSUs), trade policy, import substitution

1991 reforms, meaning of LPG, demonetisation, GST, WTO, outsourcing, impact on Indian economy, critique of reforms

Meaning, absolute and relative poverty, poverty line, causes, trends in poverty, government anti-poverty programmes

Meaning of human capital, importance, sources (education, health, migration), role of government, comparison with physical capital

Significance, credit and marketing reforms, agricultural diversification, organic farming, land reforms, rural infrastructure

Workers and employment types, formal and informal sectors, unemployment types, government employment schemes, workforce participation

Meaning and importance, energy sector, health infrastructure, types of infrastructure, India's infrastructure challenges and progress

Environment as public good, global warming, environmental degradation, sustainable development, strategies for sustainable development in India