NCERT Solutions for Class 12 MacroEconomics Chapter 2: Preparing for your Class 12 Economics exam? Confused with the concepts and terms? You can get a detailed and simple explanation on everything from NCERT Solutions for Class 12 Macroeconomics Chapter 2. The solutions are simple, designed by the subject matter experts, easy to comprehend, and as per the current CBSE Syllabus. Ace your Class 12 Economics exam with NCERT Solutions for Class 12 Macroeconomics Chapter 2.
NCERT Solutions for Class 12 MacroEconomics Chapter 2
NCERT Solutions for Class 12 MacroEconomics Chapter 2 pdf
Download NCERT Solutions for Class 12 MacroEconomics Chapter 2 PDF
NCERT Solutions for Class 12 MacroEconomics Chapter 2
In Chapter 2 of NCERT Solutions for Class 12 Macroeconomics Chapter 2, you will learn about various sub-categories of national income. You will also know about various price indices, based on which the total national income of a country is estimated. The names of the price indices are mentioned below:
- Consumer price index
- GDP (Gross Domestic Product) Deflator
- Wholesale Price Index
Methods to calculate National Income
Here are various approaches for calculating the National Income. 3 methods of calculating the National Income are mentioned below and explained in detail in the NCERT Solutions for Class 12 Macroeconomics Chapter 2.
-
Product/Value added method
In this method, national income is measured as a flow of goods and services in an economy. To derive the national income, the monetary value of all the final goods and services produced in economy over time is calculated. In this context, final goods and services are the ones that are ready to be consumed.
-
Expenditure Method
In this method, national income is calculated as a flow of factor expenditures. Through GDP annual national income is derived, which equates to the total of government expenditure, private expenditure, net exports and gross capital formation.
-
Income Method
In this method, national income is calculated as a flow of incomes. There are four factors of income, namely, land, labour, capital, entrepreneur, and each of them has an individual source of income. A land generates rent, labour receives wages, capital earns interest and the entrepreneur enjoys his/her share of profits. All these factors incomes give us National Domestic Product or NDP, at factor costs.
Why Study NCERT Solutions for Class 12 MacroEconomics Chapter 2?
There are many reasons to prepare for your Class 12 Economics exam from the NCERT Solutions for Class 12 Macroeconomics Chapter 2. Here is a list of reasons mentioned below:
- You can find a logical sequence in the explanation of each question. This will help you in comprehending how to answer similar questions.
- Answering questions during the exam will be much easier for you if you practice the solutions regularly.
- If you have any doubts regarding a chapter, you can find elaborated and explanatory notes for the same.
- All the solutions are designed as per the latest CBSE Syllabus.
- You can grasp the concepts in a better manner, thanks to the lucid language used for designing the solutions.
- Regular practice of solutions will ensure a good understanding as well as a good percentage in the Class 12 examination.
Access Other Exercise NCERT Solutions of Class 12 Macroeconomics – National Income Accounting
You can download the PDF of NCERT Solutions Class 12 Macroeconomics for other chapters
- Chapter 1 – Introduction To MacroEconomics
- Chapter 3 – Money and Banking
- Chapter 4 – Determination of Income and Employment
- Chapter 5 – Government Budget and Economy
- Chapter 6 – Open-Economy Macroeconomics
Here is a brief of CBSE Class 12 Macroeconomics Chapter 2. If you have any doubts regarding the Class 12 Economics exam, you can ask in the comment box.
FAQs on the NCERT Solutions for Class 12 Macroeconomics Chapter 2 – National Income Accounting
What are the names of the price indices in Chapter 2, NCERT Solutions for Class 12 Macroeconomics?
The names of the price indices are mentioned below:
Consumer price index
GDP (Gross Domestic Product) Deflator
Wholesale Price Index
Define Expenditure method in Chapter 2 NCERT Solutions for Class 12 Macroeconomics
In this method, national income is calculated as a flow of factor expenditures. Through GDP annual national income is derived, which equates to the total of government expenditure, private expenditure, net exports and gross capital formation.
Define Product/value-added method in Chapter 2 NCERT Solutions for Class 12 Macroeconomics
In this method, national income is measured as a flow of goods and services in an economy. To derive the national income, the monetary value of all the final goods and services produced in the economy over time is calculated. In this context, final goods and services are the ones that are ready to be consumed.
Name the 4 factors of income in the Income method.
Land, labour, capital, and entrepreneur are the 4 factors of income in the Income method.
How much does it cost to download NCERT Solutions Class 12 Macroeconomics Chapter 2 PDF?
It is free of cost.
From where can we download NCERT Solutions Class 12 Chapter 2 Macroeconomics PDF?
You can download it from Kopykitab.
Why study from NCERT Solutions Class 12 Macroeconomics?
Here are some of the reasons:
You can find a logical sequence in the explanation of each question. This will help you in comprehending how to answer similar questions.
Answering questions during the exam will be much easier for you if you practice the solutions regularly.
If you have any doubts regarding a chapter, you can find elaborated and explanatory notes for the same.
All the solutions are designed as per the latest CBSE Syllabus.
You can grasp the concepts in a better manner, thanks to the lucid language used for designing the solutions.