Advertisements
Advertisements
Question
An economy is in equilibrium. Find investment expenditure :
National income =1200
Autonomous consumption expenditure=150
Marginal Propensity to consume =0.8
Advertisements
Solution
Given that
Y= Rs1,200
`barC=Rs150`
c=0.8
As we know that
Y= C + I
`1200=barC+cY+I`
1,200= 150+0.8x1,200+I
1,200=1,110+I
I=Rs90
APPEARS IN
RELATED QUESTIONS
Government insure expenditure to popularize yoga among the masses. Analyses its impact on gross domestic product and welfare of the people.
Answer the following question.
Define net exports. How is it different from the net factor income from abroad?
Which of the following is the method of measuring National Income?
Which is the equilibrium condition of circular flow in the four sector model?
Which one is included in the four-sector model?
______ measures the excess of import expenditure over the export revenue of a country.
From the following data calculate investment expenditure:
Marginal Propensity to Save = 0.2
Equilibrium level of income = Rs 22,500
Autonomous consumption = Rs 500
Public expenditure can be unplanned only with reference to
Identify the correctly matched pair in Column A and Column B from the following:
| Column A | Column B | ||
| (1) | India should create more employment opportunities | (a) | Normative Economics |
| (2) | Unemployment | (b) | Microeconomics |
| (3) | Price behavior | (c) | Macroeconomics |
| (4) | Government-provided healthcare increases public expenditure. | (d) | Normative Economics |
State and discuss any two precautions to be considered while estimating national income by Expenditure Method.
Identify and explain the concept from the given illustration:
John purchased wheat flour for his bakery from the flour mill.
State whether the following items will be included in the estimation of National Income or not: Give a reason for your answer.
Government expenditure on street lighting.
Explain the different components of Final Expenditure in calculating the National income by Expenditure method.
