Class 12 Macro Economics: Determination of Income and Employment

Aggregate Demand and Related Concepts

Chapter 7: Aggregate Demand and Related Concepts — understand the foundations of income determination including the AD-AS framework, consumption and saving functions, investment function, and the distinction between ex-ante and ex-post values. CBSE Class 12 Macroeconomics notes covering 7 topics: Aggregate Demand and Its Components, Aggregate Supply and the 45-Degree Line, The Consumption Function, The Saving Function, Consumption-Saving Relationships and Equations, Investment Function, and Full Employment and Ex-ante/Ex-post Concepts.

Income Determination and Multiplier

Chapter 8: Income Determination and Multiplier — learn equilibrium output determination using the AD-AS approach and Saving-Investment approach, the concept of investment multiplier, its working with diagrams, and the reverse operation of the multiplier. CBSE Class 12 Macroeconomics notes covering 9 topics: Equilibrium Condition and Approaches, AD-AS Approach, Saving-Investment Approach, Types of Equilibrium, Equilibrium Output at Fixed Price, Concept of Investment Multiplier, Working and Diagrammatic Multiplier, Reverse Operation of Multiplier, and Summary of Important Formulas.

Excess Demand and Deficient Demand

Chapter 9: Excess Demand and Deficient Demand — learn the meaning, causes and impact of excess and deficient demand, inflationary and deflationary gaps, and the fiscal and monetary policy measures used to correct them. CBSE Class 12 Macroeconomics notes covering 7 topics: Excess Demand, Deficient Demand, Comparison of Excess and Deficient Demand, Policy Measures to Correct Excess Demand, Policy Measures to Correct Deficient Demand, Three-Sector Economy, and Economic Cycles and Fiscal Policy.