Determination of Income and Employment | Class 12th Economics Macro Economics | Notes, Important Questions, Previous Years Questions, Sample Papers | As Per New Syllabus

 Aggregate demand and its components. 

Propensity to consume and propensity to save (average and marginal). 

Short-run equilibrium output; investment multiplier and its mechanism. 

Meaning of full employment and involuntary unemployment. 

Problems of excess demand and deficient demand; measures to correct them - changes in government spending, taxes and money supply.


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