Aggregate Demand and Related Concepts

Aggregate Demand and Its Components

Aggregate Demand and Its Components — Learn the meaning of AD as planned aggregate expenditure, its four components in an open economy, and the simplified two-sector model. CBSE Class 12 Macroeconomics notes with AD schedule and curve analysis, numerical examples, and key exam points on autonomous consumption and investment.

Aggregate Supply and the 45-Degree Line

Aggregate Supply and the 45-Degree Line — Learn the meaning of AS as planned production, the identity AS = Y = C + S, and the significance of the 45-degree line in Keynesian analysis. CBSE Class 12 Macroeconomics notes.

The Consumption Function

The Consumption Function — Learn C = f(Y), the consumption schedule, break-even point, autonomous consumption, APC, MPC, and Keynes's Psychological Law of Consumption. CBSE Class 12 Macroeconomics notes.

The Saving Function

The Saving Function — Learn S = f(Y), the saving schedule and curve, dissaving at zero income, break-even point, APS, and MPS. CBSE Class 12 Macroeconomics notes.

Consumption-Saving Relationships and Equations

Consumption-Saving Relationships and Equations — Learn the relationship between APC and APS, MPC and MPS, and derived equations connecting consumption, saving, and income. CBSE Class 12 Macroeconomics notes.

Investment Function

Investment Function — Learn the meaning of investment, types (autonomous vs induced), determinants, and the relationship between investment and income. CBSE Class 12 Macroeconomics notes.

Full Employment and Ex-ante / Ex-post Concepts

Full Employment and Ex-ante/Ex-post Concepts — Learn the meaning of full employment, involuntary unemployment, and the distinction between ex-ante (planned) and ex-post (actual) values. CBSE Class 12 Macroeconomics notes.