Economics · Class 11 Commerce
Ch 8Macro Economic Aspects — Class 11 Economics, concept-first.
Long before John Maynard Keynes published his General Theory in 1936, macroeconomic thinking was dominated by the classical school — Adam Smith, David Ricardo, John Stuart Mill, Alfred Marshall and A. C. Pigou.
Key concepts
Hover a concept to preview it and jump to its most relevant Q&A.
Keynesian Theory of Effective Demand
Keynes replaced Say's Law with the principle of effective demand: the level of aggregate demand at which entrepreneurs' expected sales proceeds equal their expected costs, which determines the actual level of output and…
Most relevant Q&A
- In an economy, the marginal propensity to consume (MPC) is 0.75. If autonomous investment increases by ₹800 crore, calculate (i) the investm…Free
- Distinguish between Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS).Free
- What is meant by "effective demand" in Keynesian theory?Preview
- Explain Keynes's theory of income and employment determination.Free
- Explain the wage cut policy of Pigou.Preview
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Classical Economics and Say's Law
Long before John Maynard Keynes published his General Theory in 1936, macroeconomic thinking was dominated by the classical school — Adam Smith, David Ricardo, John Stuart Mill, Alfred Marshall and A.…
Keynesian Theory of Income and Employment
In his 1936 work The General Theory of Employment, Interest and Money, John Maynard Keynes rejected Say's Law directly.
Public Economics: Public Revenue and Expenditure
Public economics (traditionally called public finance) is the branch of economics that studies the income and expenditure of public authorities — the central government, state governments (including t…
Public Debt, Government Budget and Deficits
The government budget is a statement of the estimated receipts and estimated expenditure of the government for a financial year (in India, 1 April to 31 March).
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
+−Show 18 questionsHide questions18 questions
- Q1Describe the various methods of redemption of public debt.Preview
- Q2Explain the wage cut policy of Pigou.Preview
- Q3What are the sources of public revenue?Preview
- Q4Write a short note on: Say's Law of MarketPreview
- Q5Write a short note on: Effective demandPreview
- Q6Critically examine the classical theory of employment.Preview
- Q7Explain the concept of effective demand.Preview
- Q8List out the various items of public expenditure.Preview
- Q9Write a short note on: Deficit budgetPreview
- Q10Write a short note on: Effective demandPreview
- Q11Explain the Keynesian theory of employment.Preview
- Q12What are the sources of Public revenue ?Preview
- Q13Write a short note on: Effective demandPreview
- Q14Write a short note on: BudgetPreview
- Q15Describe the various methods of redemption of public debt.Preview
- Q16Enumerate the assumptions of Classical Theory of Employment.Preview
- Q17Write a short note on: Laissez FairePreview
- Q18Write a short note on: Deficit BudgetPreview
More questions
13 Q+−Show 2 questionsHide questions2 questions
- Example 1In an economy, the marginal propensity to consume (MPC) is 0.75. If autonomous investment increases by ₹800 crore, calculate (i) the investm…Free
- Example 2From the following data of a government budget, calculate the fiscal deficit and the primary deficit: Total expenditure = ₹12,00,000 crore;…Preview
+−Show 6 questionsHide questions6 questions
- Q3State and briefly explain Say's Law of Markets.Free
- Q4Distinguish between Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS).Free
- Q5What are the main sources of public revenue available to a government?Preview
- Q6Distinguish between revenue expenditure and capital expenditure.Preview
- Q7What is public debt? Distinguish between internal debt and external debt.Preview
- Q8What is meant by "effective demand" in Keynesian theory?Preview
+−Show 4 questionsHide questions4 questions
- Q9Explain the assumptions and implications of Say's Law of Markets. Why was it discredited by the experience of the Great Depression?Free
- Q10Explain Keynes's theory of income and employment determination.Free
- Q11Explain the canons of taxation given by Adam Smith.Preview
- Q12Distinguish between revenue deficit, fiscal deficit and primary deficit, and discuss the significance of the fiscal deficit for the economy.Preview