could plzz tell us some tricks o learn the formulas of macro economics...plzzz?
- First go through the basic concepts and formulas of the concerned chapter by referring to the provided study material for this.
- You should enlist all the sub-components of each heads such as in Income Method, different sub-components of Compensation of Employees, Operating Surplus, in Expenditure Method Gross Domestic Investment, etc. and learn them thoroughly.
- While solving a numerical, first of all analyze which method is to be used (if it is not mentioned in the question). Begin with writing the relevant formula. Then, proceed with putting a tick-mark on the components as per the formula. Concentrate on the components as per the formula and leave the rest (as sometimes, these may be given merely for confusion). Use these values and get the answer. Always remember that as per the Value Added Method and Expenditure Method, we get GDP MP , whereas, as per the Income Method, we get NDP FC.
Next, you can use these below-mentioned formula to get National Income or NNP FC (or any other macro-economic aggregates).
- GDP MP – Depreciation = NDP MP
- NDP MP – Net Indirect Taxes = NDP FC
- NDP FC + NFIA = NNP FC (National Income)
Rest, the practice will contribute to your precision. So, practice more using our Model Test Papers, Descriptive Tests, etc. to explore variety of questions and gain confidence. In case you get stuck in any numerical, do get back to us.