Last Updated: 11 May 2026
CUET 2027 Economics (Domain Code 305) draws 22 of 50 questions from Macroeconomics — making it the single most decisive chunk for DU Eco Honours, BHU and JNU admissions. This guide condenses NCERT Class 12 Part A into the must-know definitions, formulae and 30 high-yield MCQs.
CUET Economics 2027 — Pattern Snapshot
| Block | Q Share | Marks |
|---|---|---|
| Macroeconomics | 22/50 | 110 |
| Indian Economic Development | 14/50 | 70 |
| Introductory Microeconomics | 10/50 | 50 |
| Data / Numericals | 4/50 | 20 |
Unit 1 — National Income Accounting
Key Concepts
- GDP (Gross Domestic Product) = Money value of all final goods and services produced within domestic territory in a year.
- GNP = GDP + Net Factor Income from Abroad (NFIA).
- NDP = GDP – Depreciation.
- NNP at FC = NNP at MP – Net Indirect Taxes (NIT) = National Income.
- Personal Income = NI – Undistributed profits – Corporate tax – Social security contributions + Transfer payments.
- Disposable Income = Personal Income – Direct taxes.
Three Methods of Measuring National Income
- Value Added (Product) Method: Sum of net value added in all sectors. Avoids double counting.
- Income Method: Sum of factor incomes (rent, wages, interest, profits) + NFIA.
- Expenditure Method: C + I + G + (X – M).
Unit 2 — Money and Banking
Functions of Money
- Medium of exchange
- Unit of account
- Store of value
- Standard of deferred payment
Money Supply Measures (RBI)
| M1 | Currency with public + Demand deposits + Other deposits with RBI |
| M2 | M1 + Savings deposits with Post Office |
| M3 | M1 + Net time deposits of commercial banks (Broad Money) |
| M4 | M3 + Total deposits with Post Office (excluding NSC) |
RBI Quantitative Tools (2026 rates)
- Repo Rate: 6.50% — rate at which RBI lends to commercial banks
- Reverse Repo: 6.25%
- CRR: 4.50% — Cash Reserve Ratio
- SLR: 18.00% — Statutory Liquidity Ratio
- MSF: 6.75% — Marginal Standing Facility
Money Multiplier
k = 1/r where r = legal reserve ratio (CRR + SLR effective). Higher r → lower money creation.
Unit 3 — Determination of Income and Employment
Keynesian Cross
Equilibrium: AD = AS i.e., C + I = Y. Y* = (a + I) / (1 – MPC) = (a + I) × multiplier.
Investment Multiplier (k) = 1 / (1 – MPC) = 1 / MPS. If MPC = 0.8, k = 5.
Unit 4 — Government Budget and the Economy
| Revenue Deficit | Revenue Expenditure – Revenue Receipts |
| Fiscal Deficit | Total Expenditure – Total Receipts (excl. borrowings) |
| Primary Deficit | Fiscal Deficit – Interest Payments |
Unit 5 — Balance of Payments
Current Account: Visible (goods) + Invisible (services + transfers + income).
Capital Account: Loans, FDI, FII, Banking capital.
Foreign Exchange Market: Spot vs Forward.
India’s Forex Reserves (Apr 2026): $686 billion.
Internal Links
FAQ
How many marks does Macroeconomics carry in CUET?
110/250 (22 of 50 questions) — the largest single block in Economics 305.
Is numerical practice essential?
Yes — 4-6 numerical MCQs on multiplier, money supply, and budget deficit are guaranteed.
Which NCERT chapter is most asked?
Money and Banking (Class 12 Part A Ch. 3) — typically 6-8 questions.
Practice Quiz
Practice Quiz — 10 CUET-Style Questions
Click an option to reveal the answer and explanation.
