PPT - National Income and Related Aggregates | Economics Class 12 - Commerce PDF Download

 Page 2


KEY CONCEPTS
? Macro Economics: Its meaning
? Consumption goods, capital goods, final goods, intermediate goods, stock and flow, 
gross investment and depreciation.
? Circular flow of income
? Methods of calculation of national income
? Value added method (product method)
? Expenditure method
? Income method
? Concepts and aggregates related to national income
? Gross national product
? Net National product
? Gross and Net domestic product at market price and at factor cost.
? National disposable income (Gross and net)
? Private income
? Personal income
? Personal disposable income
? Real and Nominal GDP
? GDP and welfare
Page 3


KEY CONCEPTS
? Macro Economics: Its meaning
? Consumption goods, capital goods, final goods, intermediate goods, stock and flow, 
gross investment and depreciation.
? Circular flow of income
? Methods of calculation of national income
? Value added method (product method)
? Expenditure method
? Income method
? Concepts and aggregates related to national income
? Gross national product
? Net National product
? Gross and Net domestic product at market price and at factor cost.
? National disposable income (Gross and net)
? Private income
? Personal income
? Personal disposable income
? Real and Nominal GDP
? GDP and welfare
Macro Economics
?Macroeconomics is the study of 
aggregate economic variables of an 
economy.
Page 4


KEY CONCEPTS
? Macro Economics: Its meaning
? Consumption goods, capital goods, final goods, intermediate goods, stock and flow, 
gross investment and depreciation.
? Circular flow of income
? Methods of calculation of national income
? Value added method (product method)
? Expenditure method
? Income method
? Concepts and aggregates related to national income
? Gross national product
? Net National product
? Gross and Net domestic product at market price and at factor cost.
? National disposable income (Gross and net)
? Private income
? Personal income
? Personal disposable income
? Real and Nominal GDP
? GDP and welfare
Macro Economics
?Macroeconomics is the study of 
aggregate economic variables of an 
economy.
Consumption goods
? Are those which are bought by consumers as final or 
ultimate goods to satisfy their wants.
? Eg: Durable goods car, television, radio etc.
? Non-durable goods and services like fruit, oil, milk, 
vegetable etc.
? Semi durable goods such as crockery etc.
Page 5


KEY CONCEPTS
? Macro Economics: Its meaning
? Consumption goods, capital goods, final goods, intermediate goods, stock and flow, 
gross investment and depreciation.
? Circular flow of income
? Methods of calculation of national income
? Value added method (product method)
? Expenditure method
? Income method
? Concepts and aggregates related to national income
? Gross national product
? Net National product
? Gross and Net domestic product at market price and at factor cost.
? National disposable income (Gross and net)
? Private income
? Personal income
? Personal disposable income
? Real and Nominal GDP
? GDP and welfare
Macro Economics
?Macroeconomics is the study of 
aggregate economic variables of an 
economy.
Consumption goods
? Are those which are bought by consumers as final or 
ultimate goods to satisfy their wants.
? Eg: Durable goods car, television, radio etc.
? Non-durable goods and services like fruit, oil, milk, 
vegetable etc.
? Semi durable goods such as crockery etc.
Capital goods
? capital goods are those final goods, which 
are used and help in the process of 
production of other goods and services. 
E.g.: plant, machinery etc.