Category: Class 12 Macro Economics

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NCERT  Solutions for Class 12 Macro Economics Chapter-10 Balance of Payment

NCERT  Solutions for Class 12 Macro Economics Chapter-10 Balance of Payment NCERT TEXTBOOK QUESTIONS SOLVED Question 1. Differentiate between Balance of Trade and Current Account Balance. [3 Marks] Or Distinguish between BOT and Balance on current account.[AI 2008, CBSE 2013, Sample Paper 2013] Answer: Question 2. Should a current account deficit be a cause for…
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NCERT Solutions for Class 12 Macro Economics Chapter – 9 Foreign Exchange Rate

NCERT Solutions for Class 12 Macro Economics Chapter – 9 Foreign Exchange Rate NCERT TEXTBOOK QUESTIONS SOLVED Question 1. How is exchange rate determined under a flexible exchange rate regime? [6 Marks] Or How is foreign exchange rate determined? Explain with diagram. Or [AI 2004; CBSE 06 q How is exchange rate determined in a…
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NCERT  Solutions for Class 12 Macro Economics Chapter-8 Government Budget and the Economy

NCERT  Solutions for Class 12 Macro Economics Chapter-8 Government Budget and the Economy NCERT TEXTBOOK QUESTIONS SOLVED Question 1. Explain why public goods must be provided by the government? [3-4 Marks] Answer: Public goods are those goods and services for which consumption by some individuals does not reduce the amount available to others. For example…
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NCERT  Solutions for Class 12 Macro Economics Chapter-7 Excess Demand and Deficient Demand

NCERT  Solutions for Class 12 Macro Economics Chapter-7 Excess Demand and Deficient Demand MORE QUESTIONS SOLVED I.Very Short Answer Type Questions (1 Mark) Question 1. What is meant by excess demand in macroeconomics? [CBSE 2009] Answer: When in an economy aggregate demand exceeds “aggregate supply at full employment level”, the demand is said to be an…
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NCERT  Solutions for Class 12 Macro Economics Chapter-6 National Income Determination and Multiplier

NCERT  Solutions for Class 12 Macro Economics Chapter-6 National Income Determination and Multiplier NCERT TEXTBOOK QUESTIONS SOLVED Question 1. Measure the level of ex-ante aggregate demand when autonomous investment and consumption expenditure (A) is Rs 50 crores, and MPS is 0.2 and level of income (Y) is Rs 4000 crores. State whether the economy is…
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NCERT  Solutions for Class 12 Macro Economics Chapter-5  Aggregate Demand and Its Related Concepts

NCERT  Solutions for Class 12 Macro Economics Chapter-5  Aggregate Demand and Its Related Concepts NCERT TEXTBOOK QUESTIONS SOLVED Question 1. What is marginal propensity to consume? How is it related to marginal propensity to save?[3-4 Marks] Answer: (i) The ratio of change in consumption (C) to change in income (Y) is known as marginal propensity to…
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NCERT  Solutions for Class 12 Macro Economics Chapter-4 Banking

NCERT  Solutions for Class 12 Macro Economics Chapter-4 Banking NCERT TEXTBOOK QUESTIONS SOLVED 1. Explain the functions of a commercial bank? Ans: Deleted from syllabus. 2. What is money multiplier? How will you determine its value? What ratios play an important role in the determination of the value of the money multiplier? [3-4 Marks] Ans: When…
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NCERT Solutions for Class 12 Macro Economics Chapter-3 Money

NCERT Solutions for Class 12 Macro Economics Chapter-3 Money NCERT TEXTBOOK QUESTIONS SOLVED 1. What is Barter system? What are its drawbacks? [3 Marks] Ans:Barter system of exchange is a system in which goods are exchanged for goods. It’s Drawbacks are: Lack of double coincidence of wants.  Lack of divisibility.  Difficulty in storing wealth.  Absence…
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NCERT Solutions for Class 12 Macro Economics Chapter-2 National Income and Related Aggregates

NCERT Solutions for Class 12 Macro Economics Chapter-2 National Income and Related Aggregates NCERT TEXTBOOK QUESTIONS SOLVED 1. Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain. [3 Marks] Ans: The sum of final expenditures in an economy must be equal to the income received by all the…
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NCERT Solutions for Class 12 Macro Economics Chapter-1 Introduction to Macroeconomics and its Concepts

NCERT Solutions for Class 12 Macro Economics Chapter-1 Introduction to Macroeconomics and its Concepts NCERT TEXTBOOK QUESTIONS SOLVED 1. Describe the five major sectors in an economy according to the macroeconomic point of view.[3-4 Marks] Ans: An economy may be’ divided into different sectors depending on the nature of study. Producer sector engaged in the production…
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