{"id":5185,"date":"2016-05-20T11:49:00","date_gmt":"2016-05-20T06:19:00","guid":{"rendered":"http:\/\/mycbseguide.com\/blog\/ncert-solutions-class-12-eco-macro-05-the-government-budget-and-economy\/"},"modified":"2018-10-22T14:34:45","modified_gmt":"2018-10-22T09:04:45","slug":"ncert-solutions-class-12-economics-the-government-budget-and-economy","status":"publish","type":"post","link":"https:\/\/mycbseguide.com\/blog\/ncert-solutions-class-12-economics-the-government-budget-and-economy\/","title":{"rendered":"NCERT Solutions class 12 Economics The Government Budget and Economy"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/mycbseguide.com\/blog\/ncert-solutions-class-12-economics-the-government-budget-and-economy\/#Microeconomics\" >Microeconomics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/mycbseguide.com\/blog\/ncert-solutions-class-12-economics-the-government-budget-and-economy\/#Macroeconomics\" >Macroeconomics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/mycbseguide.com\/blog\/ncert-solutions-class-12-economics-the-government-budget-and-economy\/#CHAPTER_Five_Government_Budget_and_Economy\" >CHAPTER Five\u00a0Government Budget and Economy<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/mycbseguide.com\/blog\/ncert-solutions-class-12-economics-the-government-budget-and-economy\/#NCERT_Solutions_class_12_Economics_The_Government_Budget_and_Economy\" >NCERT Solutions class 12 Economics The Government Budget and Economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/mycbseguide.com\/blog\/ncert-solutions-class-12-economics-the-government-budget-and-economy\/#NCERT_Solutions_for_Class_12_Economics\" >NCERT Solutions for Class 12 Economics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/mycbseguide.com\/blog\/ncert-solutions-class-12-economics-the-government-budget-and-economy\/#CBSE_App_for_Students\" >CBSE App for Students<\/a><\/li><\/ul><\/nav><\/div>\n<p>NCERT Solutions class 12 Economics The Government Budget and Economy Class 12 Economics book solutions are available in PDF format for free download. These ncert book chapter wise questions and answers are very helpful for CBSE board exam. CBSE recommends NCERT books and most of the questions in CBSE exam are asked from NCERT text books. Class 12 Economics chapter wise NCERT solution for Economics part 1 and Economics part 2 for all the chapters can be downloaded from our website and myCBSEguide mobile app for free.<\/p>\n<p><strong>Download\u00a0<a href=\"https:\/\/mycbseguide.com\/downloads\/cbse-class-12-economics\/1327\/ncert-solutions\/5\/\">NCERT solutions for\u00a0The Government Budget and Economy <\/a>\u00a0as PDF.<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright\" src=\"https:\/\/media-mycbseguide.s3.ap-south-1.amazonaws.com\/images\/blog\/12%20Economics%20macro.jpg\" alt=\"NCERT Solutions class 12 Economics Money and Banking\" width=\"130\" height=\"175\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Microeconomics\"><\/span><strong>Microeconomics<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Introduction<\/li>\n<li>Theory o Consumer Behavior<\/li>\n<li>Production and Costs<\/li>\n<li>Theory of Firm Under Perfect Competition<\/li>\n<li>Market Competition<\/li>\n<li>Non Competitive Markets<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Macroeconomics\"><\/span><strong>Macroeconomics<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Introduction<\/li>\n<li>National Income Accounting<\/li>\n<li>Money and Banking<\/li>\n<li>Income Determination<\/li>\n<li>Government Budget and Economy<\/li>\n<li>Open Economy Macroeconomics<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"CHAPTER_Five_Government_Budget_and_Economy\"><\/span><strong>CHAPTER Five\u00a0<\/strong><strong>Government Budget and Economy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Components of the Government Budget\n<ol>\n<li>The Revenue Account<\/li>\n<li>The Capital Account<\/li>\n<li>Measures of Government Deficit<\/li>\n<\/ol>\n<\/li>\n<li>Fiscal Policy\n<ol>\n<li>Changes in Government Expenditure<\/li>\n<li>Changes in Taxes<\/li>\n<li>Debt<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"NCERT_Solutions_class_12_Economics_The_Government_Budget_and_Economy\"><\/span>NCERT Solutions class 12 Economics The Government Budget and Economy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>1. Explain why public goods must be provided by the government.<\/p>\n<p>2. Distinguish between revenue expenditure and capital expenditure.<\/p>\n<p>3. &#8216;The fiscal deficit gives the borrowing requirement of the government&#8217;. Elucidate.<\/p>\n<p>4. Give the relationship between the revenue deficit and the fiscal deficit.<\/p>\n<p style=\"text-align: justify;\">5. Suppose that for a particular economy, investment is equal to 200, government purchases are 150, net taxes (that is lump-sum taxes minus transfers) is 100 and consumption is given by\u00a0<em>C<\/em>\u00a0= 100 + 0.75<em>Y<\/em>\u00a0(a) What is the level of equilibrium income? (b) Calculate the value of the government expenditure multiplier and the tax multiplier. (c) If government expenditure increases by 200, find the change in equilibrium income.<\/p>\n<p style=\"text-align: justify;\">6. Consider an economy described by the following functions:\u00a0C\u00a0= 20 + 0.80Y,\u00a0I\u00a0= 30,\u00a0G\u00a0= 50,\u00a0TR\u00a0= 100 (a) Find the equilibrium level of income and the autonomous expenditure multiplier in the model. (b) If government expenditure increases by 30, what is the impact on equilibrium income? (c) If a lump-sum tax of 30 is added to pay for the increase in government purchases, how will equilibrium income change?<\/p>\n<p style=\"text-align: justify;\">7. In the above question, calculate the effect on output of a 10 per cent increase in transfers, and a 10 per cent increase in lump-sum taxes. Compare the effects of the two.<\/p>\n<p>8. We suppose that\u00a0C\u00a0= 70 + 0.70Y D, I\u00a0= 90,\u00a0G\u00a0= 100,\u00a0T\u00a0= 0.10Y<\/p>\n<p style=\"text-align: justify;\">(a) Find the equilibrium income.<\/p>\n<p style=\"text-align: justify;\">(b) What are tax revenues at equilibrium Income? Does the government have a balanced budget?<\/p>\n<p style=\"text-align: justify;\">9. Suppose marginal propensity to consume is 0.75 and there is a 20 per cent proportional income tax. Find the change in equilibrium income for the following (a) Government purchases increase by 20 (b) Transfers decrease by 20.<\/p>\n<p style=\"text-align: justify;\">10. Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.<\/p>\n<p style=\"text-align: justify;\">11. Explain the relation between government deficit and government debt.<\/p>\n<p>12. Does public debt impose a burden? Explain.<\/p>\n<p>13. Are fiscal deficits inflationary?<\/p>\n<p>14. Discuss the issue of deficit reduction.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"NCERT_Solutions_for_Class_12_Economics\"><\/span>NCERT Solutions for Class 12 Economics<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>NCERT Solutions class 12 Economics Macro Introduction PDF (Download) Free from myCBSEguide app and myCBSEguide website. Ncert solution class 12 Economics includes text book solutions from both part 1 and part 2. NCERT Solutions for CBSE Class 12 Economics have total 12 chapters. 12 Economics NCERT Solutions in PDF for free Download on our website. Ncert Economics class 12 solutions PDF and Economics ncert class 12 PDF solutions with latest modifications and as per the latest CBSE syllabus are only available in myCBSEguide<\/p>\n<h2><span class=\"ez-toc-section\" id=\"CBSE_App_for_Students\"><\/span>CBSE App for Students<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To download\u00a0NCERT Solutions for class 12 Physics, Chemistry, Biology, History, Political Science, Economics, Geography, Computer Science, Home Science, Accountancy, Business Studies and Home Science; do check myCBSEguide app or website. myCBSEguide provides sample papers with solution, test papers for chapter-wise practice, NCERT solutions, NCERT Exemplar solutions, quick revision notes for ready reference, CBSE guess papers and CBSE important question papers. Sample Paper all are made available through\u00a0<a href=\"https:\/\/play.google.com\/store\/apps\/details?id=in.techchefs.MyCBSEGuide&amp;referrer=utm_source%3Dmycbse_bottom%26utm_medium%3Dtext%26utm_campaign%3Dmycbseads\"><strong>the best app for CBSE students<\/strong><\/a>\u00a0and myCBSEguide website.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NCERT Solutions class 12 Economics The Government Budget and Economy Class 12 Economics book solutions are available in PDF format for free download. These ncert book chapter wise questions and answers are very helpful for CBSE board exam. CBSE recommends NCERT books and most of the questions in CBSE exam are asked from NCERT text &#8230; <a title=\"NCERT Solutions class 12 Economics The Government Budget and Economy\" class=\"read-more\" href=\"https:\/\/mycbseguide.com\/blog\/ncert-solutions-class-12-economics-the-government-budget-and-economy\/\" aria-label=\"More on NCERT Solutions class 12 Economics The Government Budget and Economy\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":-1,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1437,281],"tags":[283,1342,323,216],"class_list":["post-5185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics-cbse-class-12","category-ncert-solutions","tag-cbse-study-material","tag-class-12","tag-economics","tag-ncert-solutions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>NCERT Solutions class 12 Economics The Government Budget and Economy<\/title>\n<meta name=\"description\" content=\"NCERT Solutions class 12 Economics The Government Budget and Economy in PDF format for free download. 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