Class 12 Macro Economics - Chapter Determination of Income and Employment NCERT Solutions | Measure the level of ex-ante aggregate d

Explain ‘Paradox of Thrift’.

What is the difference between ex ante investment and ex post investment?

What do you understand by ‘parametric shift of a line’? How does a line shift when its (i) slope decreases, and (ii) its intercept increases?

What is ‘effective demand’? How will you derive the autonomous expenditure multiplier when price of final goods and the rate of interest are given?

What is marginal propensity to consume? How is it related to marginal propensity to save?

Explain why public goods must be provided by the government.

Differentiate between balance of trade and current account balance.

What are the four factors of production and what are the remunerations to each of these called?

What is a barter system? What are its drawbacks?

What is the difference between microeconomics and macroeconomics?

Distinguish between revenue expenditure and capital expenditure.

What are official reserve transactions? Explain their importance in the balance of payments.

Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.

What are the main functions of money? How does money overcome the shortcomings of a barter system?

What are the important features of a capitalist economy?

How is the exchange rate determined under a flexible exchange rate regime?

What are the main functions of money? How does money overcome the shortcomings of a barter system?

What role of RBI is known as ‘lender of last resort’?

Explain the functions of a commercial bank.

Are the concepts of demand for domestic goods and domestic demand for goods the same?

Write down some of the limitations of using GDP as an index of welfare of a country.

We suppose that C = 70 + 0.70Y D, I = 90, G = 100, T = 0.10Y (a) Find the equilibrium income. (b) What are tax revenues at equilibrium income? Does the government have a balanced budget?

Does public debt impose a burden? Explain.

Discuss some of the exchange rate arrangements that countries have entered into to bring about stability in their external accounts.

Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of Indirect taxes – Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.