Class 12 · Book 2 of 2
NCERT Introductory Macroeconomics: Class 12 Chapters Explained
Quick answerIntroductory Macroeconomics is the Class 12 NCERT book that studies the economy as a whole. Its six chapters cover how national income is measured, how money and banks work, what determines output and employment in the short run, how the government budget works, and how a country trades and borrows with the rest of the world.
Reviewed and approved by Dr. Anamika ShrivastavaPublished Last updated
Chapters in Introductory Macroeconomics
All six chapters, in textbook order. Each page has a quick answer, worked examples, ten important questions and ten PSC/UPSC points.
- 1Read now
Introduction
Why macroeconomics emerged, and how it differs from the study of individual markets.
- 2Read now
National Income Accounting
Circular flow, three methods of measuring GDP, from GDP to national income, the GDP deflator, GDP and welfare.
- 3Read now
Money and Banking
Functions of money, demand for money, how banks create money, and the RBI's monetary policy tools.
- 4Read now
Income Determination
Ex ante and ex post, aggregate demand, equilibrium output and the multiplier.
- 5Read now
The Government: Functions and Scope
The revenue and capital accounts, measures of deficit, and fiscal policy.
- 6Read now
Open Economy Macroeconomics
The balance of payments, exchange rate systems, and income determination in an open economy.
How the chapters connect
The book is built in a chain. Chapter 2 defines what is being measured, national output and income. Chapter 3 adds money, which every later chapter needs. Chapter 4 explains why output can sit below full employment, and Chapters 5 and 6 show how government budgets and foreign trade change that outcome.
If you are short of time, master national income accounting first: its formulas return in numerical questions across the book.
Key terms for this book
Gross domestic product Value added Multiplier Repo rate Fiscal deficit Balance of payments