Economics notes for macro eco
THE INDIAN HIGH SCHOOL
DUBAI
YEAR 2013-14
Page 1
COMPILED BY HOD ECONOMICS MRS. CHANDRA R
INDEX
S NO
1
TOPIC
PAGE NO
3 - 20
INTRODUCTION TO
MACRO ECONOMICS
21 – 35
2
AGGREGATE DEMAND
AND AGGREGATE SUPPLY
3
36 - 43
MONEY AND BANKING
4
44 - 49
GOVERNMENT BUDGET
5
49 - 58
BALANCE OF PAYMENT
AND FOREIGN EXCHANGE
6
59- 66
BOARD PAPER 2013 DELHI
7
67 - 75
MARKING SCHEME
Page 2
COMPILED BY HOD ECONOMICS MRS. CHANDRA R
HANDBOOK OF MACRO ECONOMICS
NOTE: THIS STUDY MATERIAL IS NOT ALL ENCOMPASSING. FOR A
COMPLETE AND THOROUGH KNOWLEDGE OF THE SUBJECT REFER TO
YOUR CLASS NOTES ALSO.
Chapter 1
I) Important terms to be learnt
Macro Economics: - Macroeconomics is the study of aggregate economic variables of an economy.
Consumption goods:- Are those which are bought by consumers as final or ultimate goods to satisfy their wants.
Eg: Durable goods car, television, radio etc.
Non-durable goods and services like fruit, oil, milk, vegetable etc.
Semi durable goods such as crockery etc.
Capital goods – capital goods are those final goods, which are used and help in the process of production of other goods and services. E.g.: plant, machinery etc.
Final goods: Are those goods, which are used either for final consumption or for investment. It includes final consumer goods and final production goods. They are not meant for resale. So, no value is added to these goods. Their value is included in the national income.
Intermediate goods intermediate goods are those goods, which are used either for resale or for further production. Example for intermediate good is- milk used by a tea shop for selling tea.
Stock: - Quantity of an economic variable which is measured at a particular point of time. Stock has no time dimension. Stock is static concept.
Eg: wealth, water in a tank.
Flow: Flow is that quantity of an economic variable, which is measured during the period of time.
Flow has time
DUBAI
YEAR 2013-14
Page 1
COMPILED BY HOD ECONOMICS MRS. CHANDRA R
INDEX
S NO
1
TOPIC
PAGE NO
3 - 20
INTRODUCTION TO
MACRO ECONOMICS
21 – 35
2
AGGREGATE DEMAND
AND AGGREGATE SUPPLY
3
36 - 43
MONEY AND BANKING
4
44 - 49
GOVERNMENT BUDGET
5
49 - 58
BALANCE OF PAYMENT
AND FOREIGN EXCHANGE
6
59- 66
BOARD PAPER 2013 DELHI
7
67 - 75
MARKING SCHEME
Page 2
COMPILED BY HOD ECONOMICS MRS. CHANDRA R
HANDBOOK OF MACRO ECONOMICS
NOTE: THIS STUDY MATERIAL IS NOT ALL ENCOMPASSING. FOR A
COMPLETE AND THOROUGH KNOWLEDGE OF THE SUBJECT REFER TO
YOUR CLASS NOTES ALSO.
Chapter 1
I) Important terms to be learnt
Macro Economics: - Macroeconomics is the study of aggregate economic variables of an economy.
Consumption goods:- Are those which are bought by consumers as final or ultimate goods to satisfy their wants.
Eg: Durable goods car, television, radio etc.
Non-durable goods and services like fruit, oil, milk, vegetable etc.
Semi durable goods such as crockery etc.
Capital goods – capital goods are those final goods, which are used and help in the process of production of other goods and services. E.g.: plant, machinery etc.
Final goods: Are those goods, which are used either for final consumption or for investment. It includes final consumer goods and final production goods. They are not meant for resale. So, no value is added to these goods. Their value is included in the national income.
Intermediate goods intermediate goods are those goods, which are used either for resale or for further production. Example for intermediate good is- milk used by a tea shop for selling tea.
Stock: - Quantity of an economic variable which is measured at a particular point of time. Stock has no time dimension. Stock is static concept.
Eg: wealth, water in a tank.
Flow: Flow is that quantity of an economic variable, which is measured during the period of time.
Flow has time