Topics
Introduction to Macro Economics
- Limitations of Macroeconomics
- Economy and Its Types
- Economic Systems
- Macroeconomics
- Circular Flow of Income
National Income
- Concept of National Income
- Income Method
- Importance of National Income Analysis
- National Income and Social Accounting
Theories of Employment and Income
- The Concept of Full Employment
- Types of Unemployment
- Classical Theory of Employment
- Keynes's View on Full Employment
- Comparison of Classicism and Keynesianism
Consumption and Investment Functions
- Introduction to Consumption and Investment Functions
- Consumption
- Investment
- Multiplier
- The Accelerator Principle
- Super Multiplier: (K and β Interaction)
Monetary Economics
- Monetary Economics
- Concept of Money
- Supply of Money
- Quantity Theories of Money
- Inflation
- Meaning of Deflation, Disinflation and Stagflation
- Trade Cycle
Banking
- Banking
- The Historical Development of Banks in India
- Commercial Banks
- Non-banking Financial Institution (NBFI)
- Central Bank
- The Agricultural Refinance Development Corporation (ARDC)
- Regional Rural Banks (RRBs)
- National Bank for Agriculture and Rural Development (NABARD)
- Reserve Bank of India and Industrial Finance
- Monetary Policy
- Recent Advancements in Banking Sector
- Capital Market
- Demonetisation
International Economics
- Introduction to International Economics
- Meaning of International Economics
- Subject Matter of International Economics
- Concept of Trade
- Theories of International Trade
- Gains from International Trade
- Terms of Trade
- Balance of Trade Vs Balance of Payments
- Exchange Rate
- Foreign Direct Investment (FDI) and Trade
International Economic Organisations
- Introduction to International Economic Organisations
- International Monetary Fund (IMF)
- World Bank
- World Trade Organisation (WTO)
- Trade Blocks
- South Asian Association for Regional Co-operation (SAARC)
- Association of South East Asian Nations (ASEAN)
- BRICS
Fiscal Economics
- Introduction to Fiscal Economics
- Public Finance
- Subject Matter / Scope of Public Finance
- Difference Between Public Finance and Private Finance
- Functions of Modern State
- Structure of Public Finance > Public Expenditure
- Types of Taxes
- Structure of Public Finance > Public Debt
- Budget
- Federal Finance
- History of Finance Commission
- Local Finance
Environmental Economics
- Introduction to Environmental Economics
- Meaning of Environment
- Linkage Between Economy and Environment
- Environmental Quality
- Pollution
- Climate Change
- e-wastes
- Concept of Sustainable Development
- Green Initiatives
- Types of Farming in India > Organic Farming
- Tree Plantation
- Seed Ball
Economics of Development and Planning
- Meaning of Development and Underdevelopment
- Difference Between Economic Growth and Economic Development
- Measurement of Economic Development
- Determinants of Economic Development
- Economic and Non-economic Factors
- Causes of Poverty
- Types of Planning
- NITI Aayog (National Institution for Transforming India)
Introduction to Statistical Methods and Econometrics
- Etymology and Milestones of Statistics in Global Level
- Evolution of Statistics in India
- Definitions of Statistics
- Characteristics and Functions of Statistics
- Nature of Statistics
- Scope of Statistics for Economics
- Limitations of Statistics
- Types of Statistics
- Data
- Standard Deviation
- Correlation
- Regression
- Introduction to Econometrics
- Official Statistics
Estimated time: 11 minutes
- Introduction of Full Employment
- Key Concept
- Two Economic Perspectives
- Real-Life Application
- Key Points: The Concept of Full Employment
CISCE: Class 12
Introduction of Full Employment
Full employment exists when everyone willing to work at the current wage rate has a job. Zero unemployment is impossible and not the goal.
Two Key Clarifications:
- Excludes voluntary unemployment (rich people who choose leisure over work).
- Includes 3-4% frictional unemployment (natural, temporary job switching).
CISCE: Class 12
Key Concept
Involuntary unemployment occurs when people want jobs at market wages but cannot find work. This situation represents an economic problem requiring policy attention. The 2020 lockdown created widespread involuntary unemployment among willing workers.
CISCE: Class 12
Two Economic Perspectives
| Classical View | Keynesian View |
|---|---|
| Markets always reach full employment | Markets can fail |
| Flexible wages clear labor market | Sticky wages trap workers |
| "Laissez-faire" policy works | Government intervention needed |
| Full employment is natural state | Requires demand management |
CISCE: Class 12
Real-Life Application
Jobs during dinner rush at a restaurant:
Classical: Empty tables? Lower prices → Full house automatically
Keynes: Empty tables? Manager offers free appetisers → Customers come
CISCE: Class 12
Key Points: The Concept of Full Employment
- Full employment exists when all people willing to work at the prevailing wage rate are employed.
- It does not include voluntary unemployment (e.g., idle rich).
- Frictional unemployment (about 3–4%) due to job changes or structural shifts is normal.
- An economy is at full employment even with this natural rate of unemployment.
