Solution - National Income - Concept of National Income

If real income is Rs 400 and price index is 105, calculate nominal income.

C = 100 + 0.4 Y is the Consumption Function of an economy where C is Consumption Expenditure and Y is National Income. Investment expenditure is 1.100. Calculate

(i) Equilibrium level of National Income.

(ii) Consumption expenditure at equilibrium level of national income.

Explain the impact of rise in exchange rate on national income.

Which of the following affects national income? (Choose the correct alternative)

(a) Goods and Service tax

(b) Corporation tax

(c) Subsidies

(d) None of the above