The determination of equilibrium national income, Managerial Economics

Assignment Help:

THE DETERMINATION OF EQUILIBRIUM NATIONAL INCOME

National income is said to be in equilibrium when there is no tendency for it either to increase or for it to decrease.  The actual National Income achieved at that point is referred to as the equilibrium National Income.

For there to be equilibrium, firm spending must be equal to firm's receipts.  If this were not the case, the firms will receive less and lose money until there is no more money in the system.  Hence, for there to be equilibrium:

 Factor Incomes = Consumer Spending


Related Discussions:- The determination of equilibrium national income

Identity economics, McDonalds has been operating in many Asian countries su...

McDonalds has been operating in many Asian countries such as China, Singapore and Japan. However, McDonalds has yet to open its ?rst restaurant in Vietnam, a country with over 80 m

Will you make any profits in the short run, Problem 1: Using relevant e...

Problem 1: Using relevant examples, discuss the pricing strategies that firms can use to capture value from their customers. Problem 2: You are a manager in a perfectl

Discouting priciple, Using the discounting principle calculate the present ...

Using the discounting principle calculate the present value of an annuity of five years at Rs. 500 payments made at the end of each of the next five years at 10% interest. stion..

Problems in using arc elasticity, The use of arc elasticity in economic ana...

The use of arc elasticity in economic analysis involves a good deal of chariness since it is capable of being misinterpreted. Arc elasticity coefficients vary between the same two

how many push mowers will ann rent, Ann owns a lawn-mowing company. She ha...

Ann owns a lawn-mowing company. She has 400 lawns she requires to cut every week. Her weekly revenue from these 400 lawns is $20,000. Given an 18-inch-deck push mower, a laborer ca

Analysis of consumer demand, Part A : Select one of the following economic...

Part A : Select one of the following economic issues and discuss how it impacts on your organisation. Analysis of consumer demand Cost analysis Market structure and

Market structure, what kind of market structure is involved for the sale of...

what kind of market structure is involved for the sale of medicines and vitamins? explain

Objectives of credit control , OBJECTIVES OF CREDIT CONTROL The old ob...

OBJECTIVES OF CREDIT CONTROL The old objective of controlling credit creation by the commercial banks in the country was dictated by considerations of maintaining stability of

Full-service department, Like supermarkets, full-service department stores ...

Like supermarkets, full-service department stores like Macy's are mainly in decline. What factors may these types of stores have in common behind their declines? How would you veri

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd