Economics is an interesting and scoring subject. About 50-60% of economics from the syllabus is macroeconomics. Macroeconomics is the study of an economy’s overall performance, structure, behavior, and decision-making.. Class 12 economics is not too difficult to master if one understands it systematically. This article discusses a few ways to study macroeconomics for class 12.
- Focus on one book and follow it throughout instead of using multiple books for references because having multiple references can make the topics super confusing which may lead to a dilemma right before the exam. Revise the book 2 to 3 times to gain perfect control over it.
- One of the recommendations for a macroeconomics book is by Sandeep Garg who is one of the best authors and his content is equivalent to that of NCERT (nothing less, nothing more). It is more than enough to score great in exams and the book is also based on the NCERT track with an explanation.When you’re stuck on a question, look up Sandeep Garg Macroeconomics Class 12 Solutions. It’s super helpful and the solutions are written in an easy-to-understand manner.
- Instead of revising it one chapter at a time, try to complete the syllabus before moving on to the 2-3 revision. Do the extra questions that are present on the last page and of the book as they are super helpful.
- There are several YouTube and Telegram channels dedicated to macroeconomics. There are spaces where you can solve questions of other students and also learn new concepts along with quizzes which will help with the revision. Or everyone can bring up tricky questions to the table and crack the answer. It will also boost confidence and motivate you.
- Concentrate on the subject rather than trying to understand everything.
- Finally, analyze the exam design and chapter-by-chapter mark distribution. This will offer you a general notion of the chapter on which you were required to concentrate more or less.
- Finally, complete the previous year’s CBSE question paper as well as the most recent sample paper. This will instill confidence in you and make the route easier for you.
- Finally, a day or two before the exam, stop studying new topics that you haven’t covered in the previous two days. Simply review your notes and complete a three-hour paper the day before the exam, exactly as you will in the exam, and you will ROCK.
Chapter wise introduction
Chapter 1: Circular Flow of Income
The following subjects are included in the circular flow of revenue in an economy:
- Goods and services markets.
- Factors of production markets.
- Suppliers or businesses.
- Certain items necessitate the use of labour. As a result, they look for production factors on the market. They recruit household labour and make items. After that, they sell their product at the products and services market. This is clearly explained in the first chapter of Sandeep Garg Macroeconomics Class 12. Stock, flow, real flow, money flow, and other concepts are covered in this session.
Chapter 2:Basic Concepts of Macroeconomics
The principles of macroeconomics are covered in this lesson. It mentions factors of production, for example, as well as related instances. Then you’ll obtain a rundown on current transfers and gross investment. This page also includes a chart that distinguishes between capital and consumer commodities. Following that, in the second chapter of Sandeep Garg Macroeconomics Class 12, numerous factors for asset depreciation are discussed.
Chapter 3: National Income and Related Aggregate
One of the most important chapters in the Macroeconomics syllabus for Class 12 is National Income Accounting. The following topics, as well as their formulas, will be covered in this chapter:
GDP (Gross Domestic Product) (NDP).
Gross National Product (GNP) is a measure of the (GNP).
Gross Domestic Product (GDP) is a measure of how (GDP).
National Income (Net) (NNP).
Chapter 4: Measurement of National Income
The following items are included in the chapter:
At market price, there is a net value enhancement.
Addition of Gross Value (factor cost).
Consumption in the middle.
The worth of the output.
Chapter 5: Money
Sandeep Garg Class 12 Macroeconomics explains barter trading clearly and understandably. characteristics of money, the supply of money, Demand Deposit Account (DDA), and bank money.
Banking – Commercial Banks and Central Banks (Chapter 6)
The Cash Reserve Ratio (CRR), the Statutory Liquidity Ratio (SLR), margin money, credit creation, RBI functions, and the bank of the issue are all covered in this chapter.
Chapter 7: Aggregate Demand and Related Concepts
The following topics have been explored in this chapter of Sandeep Garg Macroeconomics Class 12:
Average Savings Propensity
Average Consumption Propensity
Marginal Propensity to Save (MPS).
Marginal Propensity to Consume (MPC).
Chapter 8: Income Determination and Multiplier
The numerical solutions in this chapter show you how to use MPC and MPS to discover multipliers.
Chapter 9: Excess Demand and Deficient Demand
When an economy’s resources are finite but demand is high, excess demand occurs. Inflationary and deflationary gaps, margin requirements, insufficient demand, and other related concerns are discussed.
Chapter 10: Government Budget and the Economy
An economy’s budget is based on the following factors:
Receipt of Revenue
Expenditure on revenue.
Primary Deficiency is a condition in which there is a lack of
Capital Expenditure is a term used to describe how much money is spent on something.
Chapter 11: Foreign Exchange Rates
Countries sell their currencies for another in the foreign exchange market. The activities of the FOREX market, spot exchange, FOREX institutions, and so on are discussed in Chapter 11 of Sandeep Garg Macroeconomics Class 12.
Chapter 12: Balance of Payments
Two accounts are used to calculate the balance of payment. They are as follows:
A capital account is a type of investment account.
This chapter discusses the trade deficit, surplus, and balance of trade, among other topics.