## CBSE Class 12 Economics --- ### **Module Breakdown** #### **Part A: Introductory Macroeconomics** **Module 1: National Income and Related Aggregates** - What is Macroeconomics? - Basic concepts: consumption goods, capital goods, final goods, intermediate goods, stocks and flows, gross investment, depreciation - Circular flow of income (two sector model) - Methods of calculating National Income: Value Added/Product method, Expenditure method, Income method - Aggregates: GDP, GNP, NDP, NNP (at market price and factor cost) - Real vs. Nominal GDP, GDP Deflator, GDP and Welfare **Module 2: Money and Banking** - Meaning and functions of money - Supply of money: currency held by the public, net demand deposits - Money creation by commercial banks - Central bank (RBI): functions, credit control tools (Bank Rate, CRR, SLR, Repo, Reverse Repo, Open Market Operations, Margin requirement) **Module 3: Determination of Income and Employment** - Aggregate demand and its components - Propensity to consume and save - Short-run equilibrium output - Investment multiplier and its mechanism - Excess and deficient demand, measures to correct them **Module 4: Government Budget and the Economy** - Meaning, objectives, and components of government budget - Classification of receipts (revenue/capital) and expenditure (revenue/capital) - Balanced, surplus, and deficit budgets - Measures of government deficit and their significance **Module 5: Balance of Payments** - Balance of payments account: meaning and components - Balance of trade vs. balance of payments - Foreign exchange rate: meaning and determination, fixed and flexible exchange rates, managed floating - Appreciation and depreciation of currency --- #### **Part B: Indian Economic Development** **Module 6: Development Experience (1947-90) and Economic Reforms since 1991** - Indian economy on the eve of independence - Goals of five-year plans - Features, problems, and policies of agriculture, industry, and foreign trade - Economic reforms since 1991: liberalization, privatization, globalization **Module 7: Current Challenges Facing Indian Economy** - Poverty: absolute and relative, causes, policies - Human capital formation: role of health and education - Rural development: key issues - Employment: growth, informalization, and other issues - Sustainable economic development: meaning, strategies, environmental issues **Module 8: Development Experience of India – A Comparison with Neighbours** - Comparison with China and Pakistan: development indicators, growth, and sectoral changes --- #### **Part C: Project Work** **Module 9: Economics Project** - Select a topic (e.g., GST, Demonetization, Digital India, Poverty, etc.) - Research, data collection, analysis, and report writing - Presentation and viva ---