Introductory Microeconomics and Macroeconomics, XII by Jain T.RT. R. Jain and V. K. Ohris Introductory Macroeconomics, published by VK Global Publications, is a comprehensive set of two books for Class 12 that conforms to the latest CBSE syllabus. Volume I discusses: What We Study in Macroeconomics and How Significance it is?, Some Basic Concepts of Macroeconomics, National Income and Related Aggregates, Methods of Calculating National Income, Money and Supply of Money, Banking: Commercial Banks and The Central Bank, Aggregate Demand and its Components, Short Run Equilibrium Output, Problem of Deficient Demand and Excess Demand, Government Budget and the Economy, Foreign Exchange Rate, Balance of Payments, Solved Numericals, Unsolved Numericals, HOTS, True or False Questions, and Value-based Questions. Volume II discusses: Economics, Economy and Central Problems of an Economy, Consumers Equilibrium-Utility Analysis, Consumers Equilibrium-Indifference Curve Analysis, Theory of Demand, Price Elasticity of Demand, Production Function and Returns to a Factor, Concepts of Cost, Concept of Revenue, Producers Equilibrium, Theory of Supply, Forms of Market, Market Equilibrium Under Perfect Competition and Effects of Shifts in Demand and Supply, Solved Numericals, Unsolved Numericals, HOTS, True or False Questions, and Value-based Questions.
Circular Flow of Income and Methods of Calculating National Income
In this lesson, we will be learning:. Circular flow of national income. Value added method of calculating national income Income method. Expenditure method. What is the circular flow of national income?
Question 1. Methods of calculation of national income are : a Production method b Income method c Expenditure method d All of these Answer: d. Question 2. Which goods and services are included in calculation of national income in India? Question 3.
Flow of Money
Circular Flow of Income — Through the circular flow of income, we will learn how the simple economy functions without government, trading, and saving. It is assumed that the household does not save any earning or pay any tax to the government or buy any imported goods. Household disposes of all their earnings by buying goods and services produced by the domestic firm. In economic terms, aggregate consumption by the household in the economy is equal to aggregate expenditure incurred by the firm on producing goods and services in the economy. Again, the firm will produce goods and services and distribute factor of payments.