Arts (English Medium) Class 12 - CBSE Question Bank Solutions for Economics

Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.

Explain national income equilibrium through aggregate demand and aggregate supply. Use diagram. Also explain the changes that take place in an economy when the economy is not in equilibrium

Explain the concept of 'excess demand' in macroeconomics. Also explain the role of 'open market operation' in correcting it.

Explain the concept of 'deficient demand' in macroeconomics.

What is aggregate demand?

State components of Aggregate demand ?

Explain how government spending can be helpful in removing deficient demand.

Derive the two alternative conditions of expressing national income equilibrium. Show these equilibrium conditions on a single diagram.

Why does consumption curve not start from the origin?

What is meant by inflationary gap?

State three measures to reduce inflationary gap.

Aggregate demand can be increased by ______

Define aggregate supply?

Explain the role of Repo Rate in reducing the Inflationary gap.

Explain the concept of Deflationary Gap

Name any two components of 'aggregate demand'.

Explain the role of Cash Reserve Ratio in removing an inflationary gap

explain the role of Bank Rate in correcting deficient demand?

Explain the role of 'Margin Requirements' in removing this deficient demand gap.

Explain the role of 'Open Market Operations' in reducing Deflationary Gap