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Class 12 Economics Short Questions With Answers - Introduction (Macroeconomics)

Q.1. Give two examples of macroeconomic study.
Ans. Following are the two examples of macroeconomic study:
(a) Study of the national income
(b) Study of employment level

Q.2. What is the name of Keynesian book published in 1936?
Ans.
The name of the Keynesian book published in 1936 is ‘The General Theory of Employment, Interest and Money'.

Q.3. Give one example of microeconomic variable.
Ans.
Demand for a particular good is a microeconomic variable.

Q.4. Give examples of macroeconomic variables.
Ans. 
A few examples of macroeconomic variables include total output, rate of inflation, level of unemployment and recession in the world economy.

Q.5. What do you understand by macroeconomics?
Ans. Macroeconomics is the branch of economics that studies the behaviour of factors affecting the economy as a whole. It focuses on the behaviour of national level aggregates such as national income, total output, employment level, price level, etc. Macroeconomics is also called aggregative economics.

Q.6. Is the study of cotton textile industry a macroeconomic or a micro economic study?
Ans. 
The study of cotton textile industry is a microeconomic study.

Q.7. What is microeconomics?
Ans. 
Microeconomics is the branch of economics that studies the behaviour of individual decision making units such as households and firms. Equilibrium prices and quantities of goods and services are determined through the interaction of individuals in the market.

Q.8. List the events of macroeconomic study.
Ans. 
The events of macroeconomic study include:
(a) Rate Of Inflation
(b) Level of unemployment
(c) Decline in agricultural and industrial output
(d) Fluctuations in business activities
(e) Accumulation of foreign exchange reserves
(f) Capital market changes

Q.9. Give five variables of macroeconomics.
Ans. 
Following are the five variables of macroeconomics:
(a) Theory of Income and Employment
(b) Theory of Money
(c) Trade Cycle
(d) Macro Theory of Distribution
(e) Growth Economics

Q.10. Which are different factors of production that are involved in circular flow model?
Ans. Land, Labour,Capital and enterpreneur are four major factors of production that are involved in circular flow model.

The document Class 12 Economics Short Questions With Answers - Introduction (Macroeconomics) is a part of the Commerce Course Economics Class 12.
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FAQs on Class 12 Economics Short Questions With Answers - Introduction (Macroeconomics)

1. What is macroeconomics?
Ans. Macroeconomics is a branch of economics that focuses on the overall performance and behavior of an economy, including factors like economic growth, inflation, unemployment, and government policies.
2. Why is macroeconomics important?
Ans. Macroeconomics is important because it helps policymakers, businesses, and individuals make informed decisions by providing insights into how different economic factors interact and impact the overall economy.
3. What are some key indicators studied in macroeconomics?
Ans. Key indicators studied in macroeconomics include GDP (Gross Domestic Product), unemployment rate, inflation rate, interest rates, and government spending.
4. How does macroeconomics differ from microeconomics?
Ans. Macroeconomics focuses on the economy as a whole, while microeconomics examines the behavior of individual households, firms, and industries. Macroeconomics looks at aggregate economic indicators, whereas microeconomics analyzes specific economic units.
5. How does government policy influence macroeconomic outcomes?
Ans. Government policy, such as fiscal policy (related to government spending and taxation) and monetary policy (related to the money supply and interest rates), can have a significant impact on macroeconomic outcomes like economic growth, inflation, and unemployment.
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