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Concept Maps

Determination Of Income And Employment — Concept Maps

ICSE · Class 12 · Economics

4 concept maps of Determination Of Income And Employment for ICSE Class 12 Economics, each also written out as a text outline.

43 questions38 flashcards11 formulas & key relations5 concepts

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A labeled graph showing the linear consumption function (C = C̄ + cY), identifying autonomous consumption (C̄) as the y-intercept and marginal propensity to consume (c) as the slope.
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4 Concept Maps

Chapter Overview: Determination of Income and Employment

Chapter Overview: Determination of Income and Employment

The map in words

  • Income and Employment Determination
    • Aggregate Demand
      • Components
        • Consumption C
        • Investment I
        • Government G
        • Net Exports X minus M
      • Two Sector AD
        • AD equals C plus I
      • Behaviour
        • Upward Sloping Curve
        • Starts above origin
    • Aggregate Supply
      • Classical View
        • Perfectly Inelastic
        • Vertical Curve
        • Always at Full Employment
      • Keynesian View
        • Perfectly Elastic
        • AS equals Y
        • 45 degree line
        • AS equals C plus S
    • Consumption Function
      • C equals C-bar plus bY
      • Autonomous Consumption
        • Independent of income
        • Minimum for survival
      • Induced Consumption
        • Depends on income
        • bY component
      • APC equals C divided Y
      • MPC equals DeltaC divided DeltaY
    • Saving Function
      • S equals Y minus C
      • S equals negative C-bar plus MPS times Y
      • APS equals S divided Y
      • MPS equals DeltaS divided DeltaY
      • MPC plus MPS equals 1
    • Investment
      • Autonomous Investment
        • Independent of income
        • Horizontal curve
        • Government sector
      • Induced Investment
        • Depends on income
        • Private sector
      • Determinants
        • MEC
        • Rate of Interest r
    • Equilibrium Income
      • AD-AS Approach
        • AD equals AS
        • Y equals C plus I
      • S-I Approach
        • Planned S equals Planned I
      • Adjustment Mechanism
        • Inventory changes
    • Multiplier
      • K equals DeltaY divided DeltaI
      • K equals 1 divided 1 minus MPC
      • K equals 1 divided MPS
      • Forward Working
      • Backward Working
    • Employment Concepts
      • Full Employment
        • Zero involuntary unemployment
      • Involuntary Unemployment
        • Willing but jobless
      • Frictional Unemployment
      • Structural Unemployment

Income Determination Framework - Central Concepts

Income Determination Framework - Central Concepts

The map in words

  • Income Determination
    • Aggregate Demand
      • Consumption
        • Autonomous
        • Induced
      • Investment
        • Autonomous
        • Induced
    • Aggregate Supply
      • 45-degree line
      • AS = Y = C + S
      • Keynesian view
    • Equilibrium
      • AD = AS
      • S = I
      • No pressure for change
    • Multiplier Effect
      • K = 1/(1-MPC)
      • Income × Investment
      • Rounds of spending
    • Employment
      • Full Employment
      • Involuntary Unemployment
      • Policy implications

Income and Employment Determination Process

Income and Employment Determination Process

The map in words

  • Change in Investment or AD
    • Compare AD with AS
      • AD > AS: Shortage of Goods
        • Undesired Inventory Decrease
          • Firms Increase Output
            • Income Increases
              • Equilibrium
                • No Tendency to Change
                  • At Equilibrium: AD = AS S = I ΔY = 0
      • AD < AS: Surplus of Goods
        • Undesired Inventory Increase
          • Firms Decrease Output
            • Income Decreases

Determination of equilibrium income and employment in the economy

Determination of equilibrium income and employment in the economy

The map in words

  • Determination of equilibrium income and employment in the economy
    • Aggregate Demand
    • Aggregate Supply
    • Consumption Function
    • Propensity to Consume
    • Saving Function
    • Propensity to Save
    • Investment Function
    • Ex-ante and Ex-post Saving and Investment

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Frequently Asked Questions

What are the important topics in Determination Of Income And Employment for ICSE Class 12 Economics?
Key topics in Determination Of Income And Employment include Aggregate Demand and Aggregate Supply, Consumption Function and Propensities to Consume, Saving Function and Propensities to Save, Investment Function and Investment Multiplier. Study these first, then practise questions on each for the ICSE Class 12 board exam.
What do the concept maps for Determination Of Income And Employment show?
The 4 maps show how the ideas in Determination Of Income And Employment connect: Chapter Overview: Determination of Income and Employment; Income Determination Framework - Central Concepts. Each map is also written out as an outline on this page.
How should I revise Determination Of Income And Employment for the ICSE Class 12 board exam?
Learn the core ideas first, then work through the 43 practice questions on Determination Of Income And Employment. Revise definitions regularly and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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