CBSE Class 12 Economics Notes: National Income and Related Aggregates (2025–26)
Introduction
The study of macroeconomics focuses on the functioning of the economy as a whole. It examines overall economic indicators such as national income, employment, inflation, and growth. Among these, National Income and Related Aggregates form the foundation for understanding a country’s economic performance.
This chapter aims to help students grasp the concepts, methods, and importance of national income measurement, aligned with the CBSE Class 12 Economics syllabus (2025–26). It provides clear explanations, examples, and key formulas required for exams and conceptual understanding.
What is Macroeconomics?
Macroeconomics is the branch of economics that studies the behavior of an economy as a whole, rather than individual markets. It deals with aggregate variables such as total output, national income, total consumption, total investment, and general price level.
- It focuses on economic aggregates — the total of all micro activities in an economy.
- Main objectives include economic growth, full employment, price stability, and balance of payments equilibrium.
Meaning of National Income
National Income refers to the total monetary value of all final goods and services produced within