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The following is the information from the national income accounts for a hypothetical country:
GNP Rs. 5000.00
Personal Disposable Income Rs. 4100.00
Consumption Rs. 3800.00
X-M Rs. 50.00
Govt. Budget Deficit Rs. 200.0
Illustrate Gross Investment and Government Expenditure
given the consumer maximizing problem subjest to consumption, the firm''s maximizing problem subject to revenue as a function of labour demand, and the government''s budget as G=T.
mention and explain four factors that determine the volume of production.
what is the basis of fixation
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Explain why we cannot measure the national product simply by adding up the production of all firms. Why do the economists use real GDP rather than nominal GDP to gauge economic
DETERMINATION OF FACTOR PRICES BY SUPPLY AND DEMAND Let us suppose that perfect competition prevails in the goods and the factor markets. In such a situation let us see how th
Once we have monthly data on a price index we can evaluate the inflation. In most nations, the percentage change in price index during one month is small. Hence it is more common t
The circular flow of income in a simple economy where all income is consumed The operation of forces in an economy can be expressed in the form of a circular flow of incomes a
Multiple Expansion We have seen that a single bank in a banking system can lend rupee for rupee with its excess reserves. What is the lending ability of the commercial banking
how is credit creation by commercial bank
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