{"id":28363,"date":"2023-01-04T12:21:47","date_gmt":"2023-01-04T06:51:47","guid":{"rendered":"https:\/\/apboardsolutions.com\/?p=28363"},"modified":"2023-03-30T15:14:47","modified_gmt":"2023-03-30T09:44:47","slug":"ap-inter-1st-year-economics-notes-chapter-8","status":"publish","type":"post","link":"https:\/\/apboardsolutions.com\/ap-inter-1st-year-economics-notes-chapter-8\/","title":{"rendered":"AP Inter 1st Year Economics Notes Chapter 8 Macro Economic Aspects"},"content":{"rendered":"

Students can go through\u00a0AP Inter 1st Year Economics Notes<\/a> 8th Lesson Macro Economic Aspects will help students in revising the entire concepts quickly.<\/p>\n

AP Inter 1st Year Economics Notes 8th Lesson Macro Economic Aspects<\/h2>\n

\u2192 The theory of output and employment developed by economists such as Adam Smith, David Ricardo Malthus is known as classical theory. It is based on the famous ‘Law of Markets’ advocated by J. B. Say.<\/p>\n

\u2192 Effective demand is the backbone of Keynesian theory of employment. Because the volume of employment depends upon the extent of effective demand in the economy.<\/p>\n

\u2192 Aggregate demand denotes the demand for the total output in the economy. The output consists both consumption goods and capital goods.<\/p>\n

\u2192 Aggregate supply denotes that total supply of all goods in the economy. It consists both the consumer goods and capital goods.<\/p>\n

\u2192 Effective demand is determined where aggregate supply is equal to aggregate demand.<\/p>\n

\"AP<\/p>\n

\u2192 Public Revenue includes the different sources of governments income. Sources of public revenue are
\na) Taxes
\nb) Fines and Penalties
\nc) For features
\nd) Income from government property
\ne) Profits from public enterprises, fees etc.<\/p>\n

\u2192 Public expenditure is of two types<\/p>\n

    \n
  1. Revenue expenditure<\/li>\n
  2. Capital expenditure.<\/li>\n<\/ol>\n

    \u2192 When the expenditure of the government exceeds its revenue. It resorts to public debt. It is two types<\/p>\n

      \n
    1. Internal debt<\/li>\n
    2. External debt.<\/li>\n<\/ol>\n

      \u2192 Budget is the annual statement showing the estimated receipts and expenditure of the government for a financial year. It is three types.<\/p>\n

        \n
      1. Surplus Budget<\/li>\n
      2. Deficit Budget<\/li>\n
      3. Balanced Budget<\/li>\n<\/ol>\n

        \u2192 Budget deficit arises when the total expenditure in the budget exceeds total receipts.<\/p>\n

        \u2192 Macro economics has assumed greater significance 1930s.<\/p>\n

        \u2192 Knowledge of Macro economic theory is essential for understanding the functioning of the economy.<\/p>\n

        \u2192 There are essentially three approaches to deal with Macro economic aspects. They are Classical, Keynesian and Post Keynesian approach.<\/p>\n

        \u2192 The term “classical economics” refers to the body of economic doctrines which held their sway from the latter half of the 18th century to the early part of the 20th century.<\/p>\n

        \u2192 The leading classical economists are Adam Smith, Malthus David Ricardo, J.S. Mill, Alfred Marshall and A.C. Pigou.<\/p>\n

        \u2192 Full employment is a situation in which all those who are willing to work at the existing wage rate are engaged in work. However, even in the situation described as full employment, there may be some voluntary unemployment, seasonal unemployment and frictional or structural unemployment, but no involuntary unemployment.<\/p>\n

        \u2192 The level of output is determined by the stock of natural resources, capital, the number of workers (labour) employed and the level of technology. This functional relationship may be symbolically expressed as follows:
        \nY = f (R, K, N, T)<\/p>\n

        \u2192 The classical theory of employment is based on the Say\u2019s law of markets.<\/p>\n

        \u2192 The famous law of markets, propounded by the J.B. Say states that “Supply creates its own demand”.<\/p>\n

        \u2192 The classical economists held the view that, in a capitalistic economy, there is always a stable equilibrium at the full employment level in the long run under conditions of perfect competition. They consider full employment a general feature and unemployment a rare phenomenon.<\/p>\n

        \u2192 John Maynard Keynes, a famous British economist of the 20th century states his employment theory in his famous book entitled “The general theory of employment, interest and money” published in 1936. His theory is known as the Keynesian Theory of employment.<\/p>\n

        \u2192 Keynes used the terms aggregate demand, aggregate supply and effective demand. “Aggregate” means total. The term effective demand is used to denote that level of aggregate demand which is equal to aggregate supply.<\/p>\n

        \u2192 Aggregate supply price refers to the income the entrepreneurs in the economy expect that they must receive from the sale of the-total output.<\/p>\n

        \u2192 Aggregate demand price refers to the amount that is expected to be spent on the total output.<\/p>\n

        \u2192 Aggregate demand = Consumption expenditure + Investment.<\/p>\n

        \"AP<\/p>\n

        \u2192 Effective demand is that aggregate demand which becomes equal to the aggregate supply. This refers to the aggregate demand at equilibrium.<\/p>\n

        \u2192 Wage- cut policy is advocated by A.C. Pigou (classical economist) to reduce unemployment in the economy. It suggests that the wages of the labour should be reduced so that the unemployed can be employed.<\/p>\n

        \u2192 Budget is the annual statement of the estimated receipts (income) and the estimated expenditure of the government for the ensuing financial year (April 1 to March 31).<\/p>\n

        \u2192 Vote on account is an interim budget presented for a few months pending presentation of the regular budget.<\/p>\n

        \u2192 Surplus budget refers to the budget in which the total receipts exceed the total expenditure.<\/p>\n

        \u2192 Deficit budget refers to the budget in which the total expenditure exceeds total receipts.<\/p>\n

        \u2192 Balanced budget is that budget in which the total receipts and total expenditure are equal.<\/p>\n

        \u2192 Budget deficit is the difference between the total receipts and the total expenditure in the budget.<\/p>\n

        \u2192 Revenue deficit is the difference between the revenue receipts and the revenue expenditure.<\/p>\n

        \u2192 Fiscal deficit is the budget deficit plus the market borrowings.<\/p>\n

        \u2192 Primary deficit is the fiscal deficit minus the interest payments.<\/p>\n

        \u2192 Redemption of public debt means repayment of public debt.<\/p>\n

        \u2192 \u0c38\u0c3e\u0c02\u0c2a\u0c4d\u0c30\u0c26\u0c3e\u0c2f \u0c06\u0c30\u0c4d\u0c25\u0c3f\u0c15\u0c35\u0c47\u0c24\u0c4d\u0c24\u0c32\u0c2f\u0c3f\u0c28 \u0c06\u0c21\u0c2e\u0c4d \u0c38\u0c4d\u0c2e\u0c3f\u0c24\u0c4d, \u0c30\u0c3f\u0c15\u0c3e\u0c30\u0c4d\u0c21\u0c4b \u0c2e\u0c3e\u0c32\u0c4d\u0c1f\u0c38\u0c4d, J. B. \u0c38\u0c47 \u0c2e\u0c4a\u0c26\u0c32\u0c17\u0c41 \u0c06\u0c30\u0c4d\u0c25\u0c3f\u0c15\u0c35\u0c47\u0c24\u0c4d\u0c24\u0c32\u0c41 \u0c30\u0c42\u0c2a\u0c4a\u0c02\u0c26\u0c3f\u0c02\u0c1a\u0c3f\u0c28 \u0c09\u0c26\u0c4d\u0c2f\u0c4b\u0c17\u0c3f\u0c24\u0c3e \u0c38\u0c3f\u0c26\u0c4d\u0c27\u0c3e\u0c02\u0c24\u0c3e\u0c28\u0c4d\u0c28\u0c47 \u0c38\u0c3e\u0c02\u0c2a\u0c4d\u0c30\u0c26\u0c3e\u0c2f \u0c38\u0c3f\u0c26\u0c4d\u0c27\u0c3e\u0c02\u0c24\u0c02 \u0c05\u0c02\u0c1f\u0c3e\u0c30\u0c41.<\/p>\n

        \u2192 \u0c08 \u0c38\u0c3f\u0c26\u0c4d\u0c27\u0c3e\u0c02\u0c24\u0c02\u0c32\u0c4b \u0c2a\u0c4d\u0c30\u0c2d\u0c41\u0c24\u0c4d\u0c35 \u0c1c\u0c4b\u0c15\u0c4d\u0c2f\u0c02 \u0c09\u0c02\u0c21\u0c26\u0c41. \u0c38\u0c02\u0c2a\u0c42\u0c30\u0c4d\u0c23 \u0c2a\u0c4b\u0c1f\u0c40 \u0c09\u0c26\u0c4d\u0c2f\u0c4b\u0c17\u0c3f\u0c24, \u0c35\u0c47\u0c24\u0c28\u0c3e\u0c32 \u0c38\u0c30\u0c33\u0c24\u0c4d\u0c35\u0c02 \u0c2e\u0c4a\u0c26\u0c32\u0c17\u0c41 \u0c2a\u0c4d\u0c30\u0c2e\u0c47\u0c2f\u0c3e\u0c32\u0c2a\u0c48 \u0c06\u0c27\u0c3e\u0c30\u0c2a\u0c21\u0c3f\u0c02\u0c26\u0c3f.<\/p>\n

        \u2192 \u0c38\u0c02\u0c2a\u0c42\u0c30\u0c4d\u0c23 \u0c09\u0c26\u0c4d\u0c2f\u0c4b\u0c17\u0c3f\u0c24\u0c3e \u0c38\u0c4d\u0c25\u0c3e\u0c2f\u0c3f\u0c28\u0c3f \u0c2a\u0c4a\u0c02\u0c26\u0c15 \u0c2e\u0c41\u0c02\u0c26\u0c47 \u0c38\u0c2e\u0c3f\u0c37\u0c4d\u0c1f\u0c3f \u0c38\u0c2a\u0c4d\u0c32\u0c48, \u0c38\u0c2e\u0c3f\u0c37\u0c4d\u0c1f\u0c3f \u0c21\u0c3f\u0c2e\u0c3e\u0c02\u0c21\u0c4d \u0c38\u0c2e\u0c3e\u0c28\u0c2e\u0c48\u0c28 \u0c38\u0c2e\u0c24\u0c4c\u0c32\u0c4d\u0c2f\u0c3e\u0c28\u0c4d\u0c28\u0c3f \u0c38\u0c3e\u0c27\u0c3f\u0c02\u0c1a\u0c21\u0c02 \u0c1c\u0c30\u0c41\u0c17\u0c41\u0c24\u0c41\u0c02\u0c26\u0c28\u0c3f \u0c15\u0c40\u0c28\u0c4d\u0c38\u0c4d \u0c05\u0c2d\u0c3f\u0c2a\u0c4d\u0c30\u0c3e\u0c2f\u0c02. \u0c06\u0c30\u0c4d\u0c25\u0c3f\u0c15 \u0c35\u0c4d\u0c2f\u0c35\u0c38\u0c4d\u0c25\u0c32\u0c4b \u0c15\u0c4a\u0c02\u0c24 \u0c2e\u0c02\u0c26\u0c3f \u0c28\u0c3f\u0c30\u0c41\u0c26\u0c4d\u0c2f\u0c4b\u0c17\u0c41\u0c32\u0c41 \u0c09\u0c02\u0c1f\u0c3e\u0c30\u0c41. \u0c08 \u0c38\u0c4d\u0c25\u0c3f\u0c24\u0c3f\u0c28\u0c47 \u0c05\u0c32\u0c4d\u0c2a \u0c09\u0c26\u0c4d\u0c2f\u0c4b\u0c17\u0c3f\u0c24\u0c3e \u0c38\u0c2e\u0c24\u0c4c\u0c32\u0c4d\u0c2f\u0c02 \u0c05\u0c28\u0c3f \u0c05\u0c02\u0c1f\u0c3e\u0c30\u0c41.<\/p>\n

        \"AP<\/p>\n

        \u2192 \u0c06\u0c30\u0c4d\u0c25\u0c3f\u0c15 \u0c35\u0c4d\u0c2f\u0c35\u0c38\u0c4d\u0c25\u0c32\u0c4b \u0c2e\u0c4a\u0c24\u0c4d\u0c24\u0c02 \u0c35\u0c38\u0c4d\u0c24\u0c41\u0c30\u0c3e\u0c36\u0c3f\u0c15\u0c41\u0c02\u0c21\u0c47 \u0c21\u0c3f\u0c2e\u0c3e\u0c02\u0c21\u0c4d \u0c38\u0c2e\u0c3f\u0c37\u0c4d\u0c1f\u0c3f \u0c21\u0c3f\u0c2e\u0c3e\u0c02\u0c21\u0c4d.<\/p>\n

        \u2192 \u0c06\u0c30\u0c4d\u0c25\u0c3f\u0c15 \u0c35\u0c4d\u0c2f\u0c35\u0c38\u0c4d\u0c25\u0c32\u0c4b \u0c2e\u0c4a\u0c24\u0c4d\u0c24\u0c02 \u0c35\u0c38\u0c4d\u0c24\u0c41\u0c30\u0c3e\u0c36\u0c3f \u0c38\u0c2a\u0c4d\u0c32\u0c48\u0c28\u0c3f \u0c24\u0c46\u0c32\u0c3f\u0c2f\u0c1c\u0c47\u0c2f\u0c41\u0c28\u0c26\u0c3f \u0c38\u0c2e\u0c3f\u0c37\u0c4d\u0c1f\u0c3f \u0c38\u0c2a\u0c4d\u0c32\u0c48, \u0c38\u0c2e\u0c3f\u0c37\u0c4d\u0c1f\u0c3f \u0c21\u0c3f\u0c2e\u0c3e\u0c02\u0c21\u0c4d. \u0c38\u0c2a\u0c4d\u0c32\u0c48 \u0c38\u0c2e\u0c3e\u0c28\u0c2e\u0c48\u0c28 \u0c38\u0c4d\u0c25\u0c3f\u0c24\u0c3f\u0c28\u0c3f \u0c38\u0c3e\u0c30\u0c4d\u0c25\u0c15 \u0c21\u0c3f\u0c2e\u0c3e\u0c02\u0c21\u0c4d \u0c05\u0c02\u0c1f\u0c3e\u0c30\u0c41.<\/p>\n

        \u2192 \u0c2a\u0c4d\u0c30\u0c2d\u0c41\u0c24\u0c4d\u0c35\u0c02 \u0c06\u0c26\u0c3e\u0c2f, \u0c35\u0c4d\u0c2f\u0c2f\u0c3e\u0c32\u0c28\u0c41 \u0c17\u0c41\u0c30\u0c3f\u0c02\u0c1a\u0c3f \u0c35\u0c40\u0c1f\u0c3f \u0c2e\u0c27\u0c4d\u0c2f \u0c38\u0c30\u0c4d\u0c26\u0c41\u0c2c\u0c3e\u0c1f\u0c4d\u0c32\u0c15\u0c41 \u0c38\u0c02\u0c2c\u0c02\u0c27\u0c3f\u0c02\u0c1a\u0c3f\u0c28 \u0c35\u0c3f\u0c37\u0c2f\u0c3e\u0c32\u0c28\u0c41 \u0c05\u0c27\u0c4d\u0c2f\u0c2f\u0c28\u0c02 \u0c1a\u0c47\u0c38\u0c47\u0c26\u0c47 \u0c2a\u0c4d\u0c30\u0c2d\u0c41\u0c24\u0c4d\u0c35 \u0c35\u0c3f\u0c24\u0c4d\u0c24\u0c36\u0c3e\u0c38\u0c4d\u0c24\u0c4d\u0c30\u0c02.’<\/p>\n

        \u2192 \u0c2a\u0c4d\u0c30\u0c2d\u0c41\u0c24\u0c4d\u0c35 \u0c06\u0c26\u0c3e\u0c2f – \u0c35\u0c4d\u0c2f\u0c2f\u0c3e\u0c32 \u0c2a\u0c1f\u0c4d\u0c1f\u0c3f\u0c15\u0c28\u0c41 \u0c2c\u0c21\u0c4d\u0c1c\u0c46\u0c1f\u0c4d \u0c05\u0c02\u0c1f\u0c3e\u0c30\u0c41. \u0c15\u0c4a\u0c28\u0c4d\u0c28\u0c3f \u0c38\u0c02\u0c26\u0c30\u0c4d\u0c2d\u0c3e\u0c32\u0c32\u0c4b \u0c2a\u0c4d\u0c30\u0c2d\u0c41\u0c24\u0c4d\u0c35\u0c3e\u0c32\u0c41 \u0c2a\u0c42\u0c30\u0c4d\u0c24\u0c3f \u0c2c\u0c21\u0c4d\u0c1c\u0c46\u0c1f\u0c4d\u0c28\u0c41 \u0c38\u0c2e\u0c30\u0c4d\u0c2a\u0c3f\u0c02\u0c1a\u0c47 \u0c35\u0c40\u0c32\u0c41 \u0c32\u0c47\u0c28\u0c2a\u0c4d\u0c2a\u0c41\u0c21\u0c41 ‘\u0c13\u0c1f\u0c4d \u0c06\u0c28\u0c4d \u0c05\u0c15\u0c4c\u0c02\u0c1f\u0c4d’ \u0c2c\u0c21\u0c4d\u0c1c\u0c46\u0c1f\u0c4d\u0c28\u0c41 \u0c24\u0c3e\u0c24\u0c4d\u0c15\u0c3e\u0c32\u0c3f\u0c15\u0c02\u0c17\u0c3e \u0c15\u0c4a\u0c28\u0c4d\u0c28\u0c3f \u0c28\u0c46\u0c32\u0c32 \u0c15\u0c4b\u0c38\u0c02 \u0c38\u0c2e\u0c30\u0c4d\u0c2a\u0c3f\u0c38\u0c4d\u0c24\u0c41\u0c02\u0c26\u0c3f.<\/p>\n","protected":false},"excerpt":{"rendered":"

        Students can go through\u00a0AP Inter 1st Year Economics Notes 8th Lesson Macro Economic Aspects will help students in revising the entire concepts quickly. AP Inter 1st Year Economics Notes 8th Lesson Macro Economic Aspects \u2192 The theory of output and employment developed by economists such as Adam Smith, David Ricardo Malthus is known as classical … Read more<\/a><\/p>\n","protected":false},"author":5,"featured_media":39106,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[13],"tags":[],"jetpack_featured_media_url":"https:\/\/apboardsolutions.com\/wp-content\/uploads\/2023\/01\/Chapter-8-Macro-Economic-Aspects.png","_links":{"self":[{"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/posts\/28363"}],"collection":[{"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/comments?post=28363"}],"version-history":[{"count":6,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/posts\/28363\/revisions"}],"predecessor-version":[{"id":33935,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/posts\/28363\/revisions\/33935"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/media\/39106"}],"wp:attachment":[{"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/media?parent=28363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/categories?post=28363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/tags?post=28363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}