Syllabi of XII (Sr Seccondary and V Upadyhay)

Áflfl⁄UÁáÊ∑§Ê ∑§ˇÊÊ-12, ¬⁄UˡÊÊ-2013 44
National Income and related aggregates
Some basic concepts : consumption goods, capital goods, final goods, intermediate
goods; stocks and flows; gross investment and depreciation.
Circular flow of income; Methods of calculating National Income – Value Added or
Product method, Expenditure method, Income method.
Aggregates related to National Income:
Gross National Product (GNP), Net National Product (NNP), Gross and Net
Domestic Product (GDP and NDP) - at market price, at factor cost; National
Disposable Income (gross and net), Private Income, Personal Income and Personal
Disposable Income; Real and Nominal GDP. GDP and Welfare
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Money and Banking
Money – its meaning and functions Demand of money- Transaction Motive, Speculative
Motive.
Supply of money – Currency held by the public and net demand deposits held by
commercial banks. Money creation by the commercial banking system. Central bank
and its functions (example of the Reserve Bank of India).
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Determination of Income and Employment
Aggregate demand and its components.
Propensity to consume and propensity to save (average and marginal).(Underlined topics
are not to be examined but to be discussed in class)
Short–run equilibrium output; investment multiplier and its mechanism.
Meaning of full - Employment and involuntry unemployment, problems of excess
demand, deficient demand ; measures to correct them - change in government spending,
availability of credit.