class 12 macro-economics Notes

Macroeconomics....... short and easy notes for the board exam

1.What do you mean by Macroeconomics? What are its characteristics?

> macro means large, it is also a Greek word Makro. It deals with aggregates such as National income, aggregate demand, aggregate supply, and general price level.

Following and its characteristics; 

• It deals with the Macro unit of the economy.
• Macroeconomics study the policy related to the whole.
• It studies macro variables.
• Its important tools are fiscal policy, monetary policy, and income policy.
• It is also known as income and employment theory.

 2.Write the importance of macroeconomics.

> following are its main importance;

• Macroeconomics essential for the formulation of various economic policies.
• Macroeconomics help in providing basic raw material in the study of economic growth.
• Consumption in an economy studies to calculate the economic growth of the nation.
• All policies are framed by the government on the basis of macroeconomics.
• International comparisons are possible under macroeconomics.

3. What do you mean by consumption goods? 

> Consumption goods are those which are out and used by consumers for their final consumption.

It has two types;

• Durable goods - it is those, that last for a long time. i.e., television, cars, bikes, etc.

• Non-durable goods - It satisfies the human wants for a short period. i.e., food, items soap, toothpaste, etc.

4. What do you mean by producer goods?

> producer goods are those which are used by the firm to produce consumer goods. It is indirectly satisfied human wants.

These are two types;

• Intermediate goods - Semi-finished goods are returned as intermediate goods. It is purchased from one firm to another firm.
• Capital goods - It is not used for consumption. But reinvested in the next production process. i.e., building, land, machine, etc.

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