Expenditure Method of Measuring National Income The expenditure method is also said to be the spending approach. Under the expenditure method, all types of expenditure […]
Paradox of Thrift The paradox of thrift refers to contrasting implications of savings to households and to the economy as a whole. Saving is treated […]
Saving Function Meaning of Saving. Saving is defined as the excess of income over consumption expenditure. Various economists have defined saving in different ways. Robertson […]
Measure to Raise Propensity to Consume The following measure to raise the propensity to consume in the long period: 1. Income Redistribution: The propensity to […]
Factor Affecting Consumption Function Factor affecting consumption function is as follows: 1. Subjective Factors: Keynes states that the subjective factors which determine the slope and […]
Concept of APC and MPC The consumption function has two technical attributes or properties. They are APC and MPC. Average Propensity to Consume (APC) The […]
Keynes’ Psychological Law of Consumption Function Keynes’ Psychological Law of Consumption Function was proposed by J.M Keynes which forms the basis of the consumption function. […]
Meaning of Consumption Function Consumption is defined as an act of spending income on buying goods and services to satisfy current wants. In other words, […]
Repudiation of Say’s Law and Full Employment Theory Repudiation of Say’s Law and Full Employment Theory are described below:- The principle of effective demand repudiates […]
Determinants of Effective Demand According to Keynes full employment is not a normal situation as stated in the Classical theory. He argued that the economy’s […]
Importance of Effective Demand The principle of effective demand is the most important contribution of Keynes. A deficiency of effective demand causes unemployment. The Principle […]
Principle of Effective Demand The principle presented in that chapter is that the aggregate demand function and the aggregate supply function intersect each other at […]
Say’s law and quantity theory of money Say’s law and quantity theory of money Market lies at the center of the classical notion of full […]
Classical Theory of Employment The classical economists believed that there was always full employment in the economy. In the case of unemployment, a general cut […]
Importance and Uses of National Income National income statistics are the most important tools for long-term and short-term economic planning. A country cannot possibly frame […]
Difficulties in Measurement of National Income Estimating national income is quite a complicated task. It is beset with difficulties of various kinds. These difficulties can […]
Method of Measuring National Income The national income of any country is the monetary value of its final services and goods which are produced by […]
Various Concept of National Income A. In Terms of Market Price: Gross Domestic Product at Market Prices (GDPmp): It is […]
Meaning and Definitions of National Income National income refers to the total income of the nation in a particular period of time. In other words, […]
Circular Flow of Income and Expenditure in a Four-sector Model The four sector model is formed by adding the foreign sector to the three models. […]
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