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BLOOM PUBLIC SCHOOL

Vasant Kunj , New Delhi

Lesson Plan

Class : XII

Subject : Economics:(Macro Economics)

Month: October No of Periods:32

Unit 7: Determination of Income and Employment

(Chapter 4:

Income Determination)

TTT: 8pds WT: 24

pds

Unit 7 :

Determination

of Income and

Employment • Ex Ante and Ex Post • Movement along a curve versus shift of a curve • The Short Run Fixed Price Analysis of the Product Market

Learning

Objectives

The students will be able to : • Understand the concept Aggregate demand and Aggregate Supply • Understand the concept

Propensity to Consume and Save

Derive Consumption Curve from Savings Curve and Savings Curve from Consumption Curve • Determine Equilibrium level of Income, Output and Employment • Understand the Working of Investment Multiplier • Understand the theory Excess and Deficient Demand • Analyse the impact of Excess and Deficient Demand and measures to control it

Resources •NCERT book- Introductory Macroeconomics •Reference book by Sandeep Garg, Radha Bahuguna •Extra marks (SLM)

Class Work ORAL: Aggregate demand- Meaning and components Schedule, Curve and properties, Consumption function, Consumption Schedule, Curve and properties, Average Propensity to Consume, Marginal Propensity to Consume, Saving function, Saving Schedule, Curve and properties, Relationship between Average Propensity to Consume and Average Propensity to Save, Average Propensity to Save and Marginal Propensity to Save, Derivation of Savings Curve from Consumption Curve, Derivation of Consumption Curve from Savings Curve, Concepts of Ex Ante and Ex Post Savings and Investment, Concepts of Equilibrium, Determination of Equilibrium level of Income, Output and Employment-Aggregate Demand and Aggregate Supply approach, Savings and Investment approach, Impact of Savings and Investment on Equilibrium, Concept and Working of Investment Multiplier, Short Run Fixed Price Analysis, Concepts of Full, Voluntary and Involuntary employment Full, Over and Under Employment Equilibrium, Concept of Excess Demand and Inflationary Gap, Causes and impact of Excess Demand and Deficient Demand, Measures to correct Excess Demand and Deficient Demand- Fiscal policy, Monetary policy

Written : notes on above mentioned topics

Questions:

Q Distinguish between average propensity to consume and marginal propensity to consume.

Give a numerical example.

Sandeep Garg - Example4,5 pg no. 8.15, Example16 pg no. 8.20

Radha Bahuguna-Example21,22 pg 247

Sandeep Garg - Example28 pg no. 8.27

Q An economy is in equilibrium. Calculate national income from the following: Autonomous consumption = 100, Marginal propensity to save = 0.2, Investment expenditure = 200. Q An economy is in equilibrium. Find the 'autonomous consumption' from the following: National Income = 1000,Marginal Propensity to Consume = 0.8, Investment expenditure = 100 Q An economy is in equilibrium. Find Marginal Propensity to Consume from the following: National Income = 2000, Autonomous consumption = 400, Investment expenditure = 200 Q An economy is in equilibrium. Calculate the Investment Expenditure from the following: National Income = 800, Marginal propensity to save = 0.3, Autonomous Consumption = 100 Q In an economy investment is increased by rs 300. If Marginal Propensity to Consume is 2/3, calculate National Income. Q Explain the concept of Inflationary Gap. Explain the role of Repo Rate in reducing this gap. Q What is Deflationary Gap? Explain the role of 'Reserve Repo' in removing it. Home Work Q Explain the role of taxation in reducing excess demand. Q What is deficient demand? Explain the role of 'margin requirements' and 'Open Market

Operations' in reducing this gap.

Assessment Class Test

Period wise

plan

1 CLASS WORK

Explanation :

• Aggregate demand- Meaning and components

NCERT pg no. : (51)

WRITTEN WORK

•Notes : Aggregate demand- Meaning and components

2 CLASS WORK

Explanation :

• Aggregate demand- Schedule, Curve and properties

NCERT pg no. : (52)

WRITTEN WORK

•Notes : Aggregate demand- Schedule, Curve and properties

3 CLASS WORK

Explanation :

• Aggregate Supply- Meaning, components and curve

NCERT pg no. : (50) WRITTEN WORK

•Notes : Aggregate Supply- Meaning, components and curve

4 CLASS WORK

Explanation :

• Consumption function • Consumption Schedule, Curve and properties

NCERT pg no. : (50)

WRITTEN WORK

•Notes : Consumption function, Consumption Schedule, Curve and properties

5 CLASS WORK

Explanation :

• Consumption function • Consumption Schedule, Curve and properties (contd.)

NCERT pg no. : (50)

WRITTEN WORK

•Notes : Consumption function, Consumption Schedule, Curve and properties (contd.)

6 CLASS WORK

Explanation :

Propensity to Consume

• Average Propensity to Consume • Marginal Propensity to Consume

NCERT pg no. : (50)

WRITTEN WORK

•Notes : Propensity to Consume, Average Propensity to Consume, Marginal Propensity to

Consume

7 CLASS WORK

Explanation :

• Saving function • Saving Schedule, Curve and properties

NCERT pg no. : (50)

WRITTEN WORK

•Notes : Saving function, Saving Schedule, Curve and properties

8 CLASS WORK

Explanation :

Propensity to Save

• Average Propensity to Save • Marginal Propensity to Save

NCERT pg no. : (50)

WRITTEN WORK

•Notes : Propensity to Save, Average Propensity to Save, Marginal Propensity to Save

9 CLASS WORK

Explanation

• Relationship between Average Propensity to Consume and Average Propensity to Save, Average Propensity to Save and Marginal Propensity to Save

NCERT pg no. : (50)

WRITTEN WORK

•Notes : Relationship between Average Propensity to Consume and Average Propensity to Save, Average Propensity to Save and Marginal Propensity to Save • Question and Answer Q Distinguish between average propensity to consume and marginal propensity to consume.

Give a numerical example.

10 CLASS WORK

Explanation

• Derivation of Savings Curve from Consumption Curve

NCERT pg no. : (55)

WRITTEN WORK

•Notes : Derivation of Savings Curve from Consumption Curve

11 CLASS WORK

Explanation

• Derivation of Consumption Curve from Savings Curve

NCERT pg no. : (55)

WRITTEN WORK

•Notes : Derivation of Consumption Curve from Savings Curve

12 CLASS WORK

Explanation :

• Concepts of Ex Ante and Ex Post Savings and Investment • Concepts of Equilibrium

NCERT pg no. : (49-50)

WRITTEN WORK

•Notes : Concepts of Ex Ante and Ex Post Savings and Investment, Concepts of Equilibrium

13 CLASS WORK

Explanation :

Determination of Equilibrium level of Income, Output and Employment • Aggregate Demand and Aggregate Supply approach

NCERT pg no. : (53-55)

WRITTEN WORK

•Notes : Determination of Equilibrium level of Income, Output and Employment-Aggregate

Demand and Aggregate Supply approach

14 CLASS WORK

Explanation :

Determination of Equilibrium level of Income, Output and Employment • Savings and Investment approach

NCERT pg no. : (53-55)

WRITTEN WORK

•Notes : Determination of Equilibrium level of Income, Output and Employment-Savings and

Investment approach

15 CLASS WORK

Explanation :

• Impact of Savings and Investment on Equilibrium

NCERT pg no. : (53-55)

WRITTEN WORK

•Notes : Impact of Savings and Investment on Equilibrium

16 CLASS WORK

Explanation :

• Concept and Working of Investment Multiplier

NCERT pg no. : (56-58)

WRITTEN WORK

•Notes : Concept and Working of Investment Multiplier

17 CLASS WORK

Explanation :

• Concept and Working of Investment Multiplier (contd.)

NCERT pg no. : (56-58)

WRITTEN WORK

•Notes : Concept and Working of Investment Multiplier

18 CLASS WORK

Explanation :

• Investment Multiplier - Numerical sumsquotesdbs_dbs2.pdfusesText_2

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