Economics - XII

The Class XII Economics syllabus (2024-25) is divided into two main parts: Introductory Macroeconomics and Indian Economic Development, along with a project component. Below is the chapter-wise breakdown:

---

Part A: Introductory Macroeconomics

1. Unit 1: National Income and Related Aggregates

   • Introduction to Macroeconomics.
   • Basic concepts: consumption goods, capital goods, final goods, intermediate goods, stocks and flows, gross investment, and depreciation.
   • Circular flow of income (two-sector model).
   • Methods of calculating National Income: Value-added, Expenditure, and Income methods.
   • National Income aggregates: GNP, NNP, GDP, NDP (at market price and factor cost), Real and Nominal GDP.
   • GDP Deflator and GDP as a measure of welfare.

2. Unit 2: Money and Banking

   • Definition and functions of money.
   • Supply of money: Currency held by the public and net demand deposits of banks.
   • Money creation by commercial banks.
   • Central bank functions (RBI): Bank of issue, banker to the government, banker’s bank, and control of credit (CRR, SLR, Repo rate, etc.).

3. Unit 3: Determination of Income and Employment

   • Aggregate demand and its components.
   • Consumption and saving propensities (average and marginal).
   • Short-run equilibrium output; investment multiplier and its working.
   • Concepts of full employment and involuntary unemployment.
   • Problems of excess demand and deficient demand, and corrective measures.

4. Unit 4: Government Budget and the Economy

   • Meaning, objectives, and components of the government budget.
   • Classification of receipts (revenue and capital) and expenditure.
   • Types of budgets: Balanced, surplus, and deficit budgets, along with types of deficits.

5. Unit 5: Balance of Payments

   • Meaning and components of the Balance of Payments account.
   • Concept of surplus and deficit in BoP.
   • Foreign exchange rate: Fixed, flexible, and managed floating rates.
   • Determination of exchange rate in a free market and implications of different exchange rate systems.

---

Part B: Indian Economic Development

1. Unit 6: Development Experience (1947-90) and Economic Reforms since 1991

   • State of the Indian economy at the time of independence.
   • Economic system and Five-Year Plans.
   • Key areas: Agriculture, industry, and trade policies (with a focus on institutional reforms and strategies).
   • Economic reforms since 1991: Liberalization, Privatization, Globalization (LPG policy), demonetization, and GST.

2. Unit 7: Current Challenges Facing the Indian Economy

   • Human Capital Formation: Role of education and health in economic development.
   • Rural Development: Issues related to credit, marketing, agricultural diversification, and organic farming.
   • Employment: Trends, issues in the formal and informal sectors, and policy measures.
   • Sustainable Development: Impact of economic development on resources and the environment, with a focus on global warming and sustainable practices.

3. Unit 8: Development Experience of India – A Comparison with Neighbours

   • Comparative study of development experiences of India, Pakistan, and China.
   • Focus on economic growth, population, sectoral development, and human development indicators.

---

Part C: Project Work

• Project work involves research-based assignments on topics such as economic reforms, comparative analysis of economic indicators, environmental economics, and case studies on policy impacts.