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NCERT Solutions for Class 12 Macro Economics Chapter-4

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Class 12 NCERT Solutions Macro Economics - Determination of Income and Employment - Free PDF Download

Macroeconomics Chapter 4 Class 12 deals with significant economic concepts like marginal propensity, investment, parametric shift of a line, effective demand which help the students understand crucial factors about economic determinants that affect consumer behaviour.

NCERT Class 12 Macroeconomics Chapter 4 solutions provide ideal solutions to essential questions that offer a better understanding to the students.

NCERT Solutions for Class 12 Macro Economics Chapter 4 Determination of Income and Employment part-1
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FAQ (Frequently Asked Questions)

1. What are the Important Topics and Subtopics in Macroeconomics?

Ans. The important topics and subtopics of Class 12 CBSE Macroeconomics are a detailed understanding of - Introduction to Macroeconomics, National income accounting, Money and Banking, Determination of Income and Employment, Government Budget and the Economy, Open Economy Macroeconomics.


Apart from the broader topics, the important sub-topic includes product method, expenditure method and income methods, functions of money, money created by banking systems, demand and supply, marginal propensity, parametric shifts of line, effective demands, paradox of thrifts.


All these chapters are important for both MCQs, short, very short, and long answer questions that come with equal mars weightage.

2. What are Some Crucial Questions From Class 12 Macroeconomics?

Ans. Some of the must-know essential questions from Class 12 Macroeconomics that are crucial for conceptual understanding are:

  1. Explain the concept of Paradox Thrift.

  2. What is the difference between Ex-ante investment and Ex-post investment?

  3. Essential features of the Capitalist Economy.

  4. Calculation of personal income and personal disposable income.

  5. Difference between planned and unplanned inventory accumulation.

  6. What is a barter system, and what are its various drawbacks?

  7. Explain the concept of the Liquidity trap.

  8. Explain why the government must provide a public good.

  9. Distinguish between revenue and capital expenditure.

  10. Difference between the balance of trade and current account balance.

3. How Helpful are the NCERT Solutions in Class 12 Macroeconomics?

Ans. The NCERT solutions to Class 12 Macroeconomics is extensively helpful for students preparing for the CBSE board exams. It covers in detail the questions from important topics like money and banking, determination of income and employment, government budget and the economy, open economy Macroeconomics.


Teachers explicitly curate these solutions. These solutions come with a detailed example, step by step illustrations and diagrams to provide a better understanding of the topics for the students. The solutions cover questions of both short answer and long answer types and appear extremely helpful for last moment preparation of complicated topics and revision.

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