PPT : National income in India | Business Economics for CA Foundation PDF Download

 Page 1


CPT Section C General Economics  
Chapter 5 Unit 3  
Manish Dua 
 
Page 2


CPT Section C General Economics  
Chapter 5 Unit 3  
Manish Dua 
 
Macroeconomics is the study of the 
economy as a whole. 
• Its goal is to explain the economic changes that affect 
many households, firms, and markets at once. 
Page 3


CPT Section C General Economics  
Chapter 5 Unit 3  
Manish Dua 
 
Macroeconomics is the study of the 
economy as a whole. 
• Its goal is to explain the economic changes that affect 
many households, firms, and markets at once. 
Macroeconomics answers questions like the 
following: 
• Why is average income high in some countries and low 
in others?  
• Why do prices rise rapidly in some time periods while 
they are more stable in others?  
• Why do production and employment expand in some 
years and contract in others?  
Page 4


CPT Section C General Economics  
Chapter 5 Unit 3  
Manish Dua 
 
Macroeconomics is the study of the 
economy as a whole. 
• Its goal is to explain the economic changes that affect 
many households, firms, and markets at once. 
Macroeconomics answers questions like the 
following: 
• Why is average income high in some countries and low 
in others?  
• Why do prices rise rapidly in some time periods while 
they are more stable in others?  
• Why do production and employment expand in some 
years and contract in others?  
When judging whether the economy is doing well 
or poorly, it is natural to look at the total income 
that everyone in the economy is earning. 
Page 5


CPT Section C General Economics  
Chapter 5 Unit 3  
Manish Dua 
 
Macroeconomics is the study of the 
economy as a whole. 
• Its goal is to explain the economic changes that affect 
many households, firms, and markets at once. 
Macroeconomics answers questions like the 
following: 
• Why is average income high in some countries and low 
in others?  
• Why do prices rise rapidly in some time periods while 
they are more stable in others?  
• Why do production and employment expand in some 
years and contract in others?  
When judging whether the economy is doing well 
or poorly, it is natural to look at the total income 
that everyone in the economy is earning. 
For an economy as a whole, income must 
equal expenditure because: 
• Every transaction has a buyer and a seller. 
• Every  Rupee of spending by some buyer is a Rupee 
of income for some seller.