Economics is an essential subject especially in commerce stream but is frequently offered to science and humanities students. Being a ‘scoring subject’, Economics is the study of choices as well as optimal utilisation of resources. At the secondary level, it is majorly bifurcated into two sub-branches called Macroeconomics and Microeconomics. While microeconomics is included under the class 11 syllabus, macroeconomics is provided at an advanced level in class 12. Through this blog, we will delve deeper into class 12 macroeconomics syllabus and course structure as well as its key components.
Must Read: Class 12 Economics – CBSE Course Structure
This Blog Includes:
Class 12 Macroeconomics: Overview
As an integral field of Social Sciences, Economics is a vast domain comprising of interdisciplinary constituents. Deals with the study of the economy as a whole, Macroeconomics assesses all those factors that have an impact over the entire economy and its essentials such as economic growth, economic declines, unemployment, inflation, etc. Further, it also includes a multitude of other features such as national income, commercial banking system and government budget amongst others.
Structure and Syllabus of Class 12 Macroeconomics
Now, let us take a look at the marks distribution and unit bifurcation of class 12 macroeconomics through the following table.
|Part A||Introductory Macroeconomics||40||100|
|Part B||Indian Economic Development||40||100|
|Part C||Project Work||20||20|
Part A: Introductory Macroeconomics
Class 12 Macroeconomics is divided into a total of 5 units covering a plethora of aspects of the study of the economy as well as its vital constituents and related factors. Take a look at the enlisted units for this section which are further elaborated upon in the following paragraphs:
|National Income and Related Aggregates||10||28|
|Money and Banking||6||15|
|Determination of Income and Employment||12||27|
|Government Budget and the Economy||6||15|
|Balance of Payments||6||15|
Unit 1: National Income and Related Aggregates
- What is Macroeconomics
- Consumer goods; final goods; capital goods; stocks and flows; gross investment and depreciation; basic concepts in Macroeconomics;
- Methods of calculating National Income-: Value Added or Product method, Expenditure method, Income method;
- Circular flow of income (Two sector model);
- Aggregates related to National Income: Net National Product (NNP), Gross National Product (GNP), Gross and Net Domestic Product (GDP and NDP)- at factor cost, at market price, Real and Nominal GDP
- Welfare and GDP
Unit 2: Money and Banking
- Money- Supply of money and meaning- public currency and the deposits held by commercial by the commercial banks;
- Money creation by the commercial banking systems;
- Functions of the central bank (example of the Reserve Bank of India): Government bank; Bank of issues; control of credit through bank rate; banker’s bank; CRR; SLR; Repo Rate and Reverse Repo Rate; margin requirement; open market operations.
Unit 3: Determination of Income and Employment
- Propensity to consume and propensity to save (average and marginal).
- Investment multiplier and its mechanism;
- Short-run Equilibrium output;
- Aggregate demand and its various components;
- Detailed meaning of involuntary unemployment and full employment
- Diverse problems of excess demand and deficient demand
- various measures and ways to correct them- changes in governmental spending; money and taxes supply.
Unit 4: Government Budget and the Economy
- Classification of Expenditure- capital expenditure and revenue expenditure; Classification of Receipts- capital receipts and revenue receipts;
- Meaning, objective and components of Government Budget;
- Multiple measures of government deficit- fiscal deficit, revenue deficit along with primary deficit and their meaning.
Unit 5: Balance of Payments
- Foreign exchange rate- definition and meaning of fixed and flexible rates and managed floating;
- Determination of the exchange rate in the market;
- Balance of payments account- different components and meaning.
Part B: Indian Economic Development
Class 12 Macroeconomics part B deals with the Indian Economic Development . Take a look at the enlisted units for this section which are further elaborated upon in the following paragraphs:
|Development Experience (1947-90) and Economic Reforms since 1991||12||28|
|Current Challenges facing Indian Economy||22||35|
|Development Experience of India||6||12|
Unit 6 : Development Experience (1947-90) and Economic Reforms since 1991
- Introduction of Indian Economy
- Common goals of five-year plans of the Indian Economic System
- Agricultural policies
- Industry and foreign trades
- Liberalization and Privatization
- Demonetisation and GST
Unit 7 : Current Challenges facing Indian Economy
- Rural Development
- Human Capital Formation
Unit 8 : Development Experiences of India
- Comparison of economic development with neighbouring countries
- Issues concerning economic development of India
Tabulated below are some beneficial links for class 12th students:
Thus, we hope that this blog has helped you understand the syllabus for class 12 macroeconomics. Are you unsure about which direction to take after class 12th? Sign up for a free 30-minute career counselling session with our experienced mentors at Leverage Edu and we will guide in sorting out your interests and skills to finding an ideal course and university to sail further towards the next phase of your career journey.