NCERT Books for Class 12 Macro Economics

Economics: Macroeconomics

Macroeconomics is concerned with factors such as an economy's total output, the extent to which its resources are used, the size of national income, and the overall price level.

Macroeconomics in Class 12 will cover a variety of topics, including macroeconomic principles, national income, money, banking, aggregate demand and supply, short-run equilibrium output, inadequate and excess demand, government budget, foreign exchange rate, and the balance of payments, among others.

Significance of Macroeconomics NCERT PDF

The core concepts of macroeconomics are crucial in almost every aspect of daily life. When you study NCERT Macroeconomics class 12 PDF books, you can form an understanding of the availability of goods and services. Moreover, by learning NCERT class 12 Macroeconomics, you can assess government welfare and employment.

At the end of each chapter in Macroeconomics NCERT class 12 PDF books, you will find an overview of all the important topics. You can use the same to revise whatever you learned from the chapter itself.

Chapter 1: Introduction to Macroeconomics

This first chapter is a basic introductory note on the subject. Students can read theories postulated by esteemed economists of the past, such as John Maynard Keynes and Adam Smith. 

Through this introductory macroeconomics NCERT chapter, you can expect to learn more about key concepts, such as wage rates, profits, rate of interest, rate of employment and means of production. Four sets of questions accompany this chapter for students to practice. Without a proper understanding of these basic theories, proceeding further into the book can be difficult.

Chapter 2: National Income Accounting

In this chapter of NCERT economics class 12 macroeconomics PDF, students will learn more about how a simple economy functions. Moreover, aggregate values for such an economy are also explained in extensive detail. The range of topics covered here includes the circular flow of income, national income calculation, welfare, GDP, Goods & their prices and macroeconomic identities.

The NCERT textbook also comes with several illustrations and examples, which should help in understanding each topic discussed within this lesson. Additionally, you must complete every numerical problem at the end of the chapter for increased proficiency.

Chapter 3: Money and Banking

This lesson begins by explaining the exact function of money in an economy. While studying Macroeconomics 12th NCERT, students must also concentrate on learning the transaction motive and speculative motive for demand for money. Additional topics that this chapter deals with include how money is created by the banking system, legal definitions of broad and narrow money.

Lastly, one will also learn more about the functionality of the Reserve Bank of India, along with the various monetary policies. To improve understanding, this chapter comes with several illustrations and diagrams as well.

Chapter 4: Income Determination

As the name of this chapter suggests, it deals with an economy’s income generation and employment. Important topics in this portion of NCERT macroeconomics class 12 PDF books include Ex Ante and Ex Post. Moreover, you will also pick up concepts regarding total consumption and demand, investment and more.

Integral terminologies from this chapter include APC, APS, MPS and MPC. By the end of the chapter, you would be able to predict how an autonomous change in total demand can influence both output and revenue in a country. If a particular topic sounds too complex, you can rely on the well-placed examples and case studies to improve understanding further.

Chapter 5: The Government: Functions and Scope

When referring to the macroeconomics NCERT book, pay close attention to its penultimate chapter. Here, students can learn more about the government budget, along with a nation’s economy. For the government budget, you will need to learn about the revenue account and the capital account.

The next portion of this chapter deals with the fiscal policy changes that governments often enforce. This includes changes in tax norms and alterations in government expenditure. Additionally, the national debt also factors into this lesson. With additional illustrations, these books will also teach you how any government calculates economic deficits in the country.

Chapter 6: Open Economy Macroeconomics

The final chapter in NCERT macroeconomics class 12 PDF book deals with the concepts, governing an open economy. From deficit to the balance of payment surplus, it teaches students a wide variety of important topics. Other subjects in this chapter are fixed exchange rates, flexible exchange rates, managed floating, determination of exchange rate, national income identity, trade deficits, trade balance and much more.

You can also use some of the examples and illustrations to derive a better understanding of this chapter. At any rate, knowing what an open economy means, and its various characteristics is vital for your final preparations.

Tips to Excel in Macroeconomics:

• In Macroeconomics, numerals are extremely significant. Many questions from chapters like the elasticity of demand and supply, revenues and costs, national income, and others are asked in the exam. Even though computations are essentially added and subtracted, be wary of committing foolish errors by mixing formulas.

• Students should not memorise the many formulas; instead, they should grasp how each formula is generated and why it was created. Prepare a chapter-by-chapter formula sheet and edit it regularly once you've mastered the formulas.

• Move on to the next topic like for instance, studying a book on microeconomics before moving on to another. Make a list of any questions you have and have them answered by your teachers. Then move on to any other subject, such as macroeconomics.

• Because numerous concepts and units are intertwined, it's important to remember to establish analogies. You must learn to recognise such similarities when studying to gain a better understanding. Definitions must be grasped in their whole, including the logic and reasoning behind the notion.

• If you get stuck while answering questions at a predictable moment, make a note of it for subsequent revision. It will prove to be very helpful later in the examination. Give yourself plenty of time to revise in the months leading up to your boards. Remember to create a visually appealing and well-organized project file. This project is worth 20 points, therefore students should make the most of it and get at least 18-20 points here.

Why Must you Consult NCERT Macroeconomics Class 12 PDF Books?

Students might wonder why they need to consult NCERT books for their macroeconomy preparation, instead of just consulting any reputable textbook available out there. Listed below are some reasons why NCERT class 12 macroeconomics PDF books are held in high regard -  

• Extensive Knowledge on Each Topic – Each NCERT book is crafted with great care, keeping in mind the curriculum for higher secondary students. Furthermore, the authors responsible for penning these textbooks are exceptionally accomplished in their fields of study.

• Various illustrations, Examples and Exercise – Interactive learning makes studying fun and effortless. This is why each NCERT macroeconomics class 12 PDF book comes with tons of illustrated examples after every concept. Furthermore, each chapter also includes examples wherever possible.

• Lastly, at the end of a chapter, NCERT books include problems that students can solve, which should ensure a better command over any given chapter or topic.

• Mark Scoring Potential – Board exam papers from previous years indicate that CBSE prefers sticking to topics that are clearly explained in NCERT books. Therefore solving problems in these books can easily prepare a student for his/her board examinations. If all the concepts are clear, students can solve questions, even if they are presented in a twisted manner. 

• Improve Language Comprehension Skills – Although most NCERT textbooks simply present study materials, reading chapters thoroughly can improve your ability to understand English and express yourself as well. Therefore, apart from fortifying your subject knowledge, such books enhance your language and communication skills too.

Thus, NCERT 12 macroeconomics PDF books can help your exam preparations in these contexts. You can rely on these notebooks for your class 12 board exams, and use the same to guide you to success in a variety of competitive examinations as well. Never forget to solve the exercise present at the end of each chapter in all NCERT books.

Chapter-wise important topics:

• Chapter - 1: Consumption goods, capital goods, final goods, intermediate goods; inventories and flows; gross investment and depreciation are all basic macroeconomic concepts. Circular Flow of Income: National Income Calculation Methods: Value Added or Product method, Expenditure Method, and Income Method. Gross National Product (GNP), Net National Product (NNP), Gross and Net Domestic Product (GDP and NDP)-at market price and factor cost; Real and Nominal GDP, GDP and Welfare.

• Chapter - 2: Money: Its definition and supply - Currency held by the general public and commercial banks' net demand deposits, The commercial banking system create money. Banking: Central banks and their functions (for example, the Reserve Bank of India), issue banks, government banks, banker's banks, credit control via bank rates, CRR, SLR, repo rates and reverse repo rates, open market operations, and margin requirements.

• Chapter - 3: Demand as a whole and its constituents, Consumption proclivity and saving proclivity (average and marginal), Investment multiplier and its mechanism; short-run equilibrium output. Full employment and involuntary unemployment have different meanings, Excess and deficient demand issues; solutions include adjustments in government expenditure, taxes, and the money supply.

• Chapter - 4: The meaning, objectives, and components of the government budget, receipts are divided into two categories: revenue receipts and capital receipts, Revenue expenditure and capital spending are divided into two categories, The definition of government deficit measures such as revenue shortfall, fiscal deficit, and primary deficit.

• Chapter - 5: The definition and components of the balance of payments account, What does a balance of payments deficit mean? Fixed and flexible rates, as well as managed floating rates, are all examples of foreign exchange rates. In a free market, the exchange rate is determined.

Vedantu Helps you Delve Deeper into Topics

While NCERT books can surely help your preparation, you may need a helping hand from time to time. Vedantu is that guide that can elevate your exam preparations to the next level. We offer online study materials, specially crafted for CBSE students. You can peruse them on our website or download a copy.

Apart from study materials, our live online classes can improve your understanding of various topics. Combined with NCERT Macroeconomics class 12 PDF books, these classes can help you top your board examinations and shoot for the stars.

Other Free CBSE Study Material for Class 12