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Class 12 Macroeconomics: Chapter 8 Solutions by Sandeep Garg

Commerce

Class 12 Macroeconomics: Chapter 8 Solutions by Sandeep Garg

Class 12 Macroeconomics Sandeep Garg Solutions Chapter 8 - Income Determination and Multiplier

Class 12 is the basic turning point in education for every student because it acts as an endpoint of schooling education as well as the beginning point of higher education. Sandeep Garg Macroeconomics Class 12 Solutions Chapter 8 explains the calculation of income determination and multiplier with the perfect formula and plenty of examples for commerce students. So the chapter entirely deals with the two important concepts of Macroeconomics to give excellent economic decisions.

Sandeep Garg Macroeconomics Class 12 Solutions Chapter 8 PDF Download

Overview of Chapter 8

Class 12 Macroeconomics Income Determination and Multiplier is listed in the book to provide knowledge of income determination and multiplier concepts to the students. In this chapter, it is mentioned that income determination and multiplier play a vital role in Macroeconomics. Keynesian theory has stated that the determination of income can be done in multiple approaches based on the factors influencing the level of income. As concepts of business are related to either directly proportional or indirectly proportional, similarly, the multiplier is also a ratio between the determination of income to the change in investment.

The Relation Between Income Determination and Multiplier

The Sandeep Garg Class 12 Macroeconomics Solutions Chapter 8 has explained the relationship between income determination and multiplier and also taught that all the elements are interrelated to each other. They explained in a simple way that the students could understand easily as the multiplier is a ratio in which one of the elements is income determiner. So both of them are directly proportional to each other. If the approach of determining the income has changed, then the multiplier also changes its value. To get more knowledge on these topics, it is advisable to calculate as many problems as you can.

Calculation

1. Calculate the Multiplier if MPC is 0.90.

Sol. MPC = 0.90

Multiplier (K) = 1/(1-MPC)

= 1/(1-0.90)

= 1/0.10

= 10

2. Calculate the Value of the Multiplier if MPS is 0.50.

Sol. MPS = 0.50

Multiplier (K) = 1/MPS

= 1/0.50

=. 5

In this way, the students are requested to solve several case studies provided in Sandeep Garg Class 12 Macroeconomics Chapter 8 Solutions.

Why Choose Sandeep Garg Solutions ?

Several reasons are there to choose Sandeep Garg Solutions for Class 12 Macroeconomics of Chapter 8. Few reasons are,

The first aim is to choose Sandeep Garg Solutions of Class 12 Macroeconomics of Chapter 8 is to get a better score.
Class 12 Sandeep Garg Macroeconomics Chapter 8 is also available in PDF with plenty of practice test papers which help out the students to understand clearly and to revise multiple times.
The Sandeep Garg Solutions of Macroeconomics is a bit high level of the CBSE syllabus.
It is designed as a means of preparation by well-experienced subject experts.

Features of Sandeep Garg Text Book

Sandeep Garg Textbooks act as a treasure for the students of class 12th. Students can make their basics of macroeconomics strong with these textbooks because they provide you with crisp and precise information and therefore it helps in the core foundation of students' macroeconomics. It has some got some important features and they are mentioned below:

Sandeep Garg's books are of high standards and have been designed on the basis of the latest CBSE syllabus.
The student can understand the concept of the art of the time from the regular practices and solving the solutions of the Sandeep Garg textbooks and it also helps them to solve all the question papers accurately.
Sandeep Garg textbooks provide a student with clear and accurate solutions to all the questions which have been asked including complex and difficult questions too.
It provides you with a lot of questions ranging from the MCQs, short type questions as well as the long type of questions.
Regular practices help in enhancing the efficiency of the student as well as help the students to quickly grasp the new concepts of macroeconomics from the theoretical section.

Important Chapters of Class 12th Economics are mentioned Below:

Consumer Behaviour and Demand
Producer Behaviour and Supply.
Form of Market and Price Determination.
National Income and Related Aggregates
Balance of Payments
Determination of Income and Employment.
Government Budget and Economy

Conclusion

Here is the best option for the students to clear their doubts, understand the concept clearly, and to practice several solved papers given in the Sandeep Garg Solutions of Macroeconomics of Class 12 Chapter 8. Every student cannot understand in the same way at the same time. So the PDF format of Class 12 Macroeconomics by Sandeep Garg will assist the students for all their needs.

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FAQs on Class 12 Macroeconomics: Chapter 8 Solutions by Sandeep Garg

1. What are tips to prepare for the Macroeconomic Class 12 Chapter 8?

There are several tips to prepare for the macroeconomics of Class 12 Chapter 8 and they are as follows:

Learn from the best
This is very important for the student to understand and learn from those books which helps them to make them understand and as well as makes them efficient and Sandeep Garg textbooks are one of them.
Learn the definitions of each thoroughly and learn their purpose
The student needs to understand them and learn them thoroughly in order to recall them quickly in the examination hall.
Revise and practice as much as possible
It is very important and key to getting the highest scoring marks and this is a reason students need to follow the Sandeep Garg textbooks because it covers all types of questions.

2. What is Demand and what are the Determinants of Demand?

Demand refers to the relationship between the quantity of the commodity that a consumer is willing to buy and the price of the commodity during that specific period. Basically when the price of the commodity decreases then its demand increases and when the price increases then the demand decreases.

The determinants of demand are mentioned below:

The price of the commodity is inversely related to the quantity demanded of the commodity.
The income of the buyer is directly related to the price of the commodity.
The price of related goods has been divided into two parts-substitute and complementary goods. If the price of the substitute good increases then the demand of the commodity increases and if the price of the complementary good increases then the demand for the commodity decreases.

3. What is the difference between Consumer Goods and Capital Goods?

There are a lot of differences between consumption goods and capital goods.

Consumption goods satisfy the demand of humans directly whereas capital goods indirectly satisfy the human demand.
Consumption goods do not lead to the product whereas capital goods lead to production.
Consumption goods have a limited life expectancy whereas capital goods have a life expectancy of more than a year.

4. What are the reasons for the depreciation of the assets?

There could be these possible reasons for the depreciation of the assets and they are mentioned below:

The regular use of the fixed assets in the production process leads to the reduction of the production capacity and the value.
Because of the passage of time the value of the fixed assets decreases the productive capacity even if it is not in use regularly because of the natural agents like wind, water, etc.
The fixed assets value also decreases because technology, goods, etc gets outdated.

5. How are Sandeep Garg textbooks of Class 12th for Macroeconomics going to help me?

Sandeep Garg textbooks are designed by the experts by putting more focus on development based on the right knowledge of the student regarding the subject which helps them to score better and higher as it covers all kinds of questions to solve them. Apart from that, you will receive detailed solutions to all the questions which would help in making your base stronger for the foundation.