Forums
National income
Economics
answered on 19-Oct-23 09:09
state the method which is considered the most suitable for measurement of National Income of the developed economies.
latest answer
Income method, Because in developed countries literacy is high. And data related to incomes is easily available.
C ANNBU PALANIAPPAN
CA Inter
★ 5K+
2
210
3 sector model
Economics
answered on 20-Oct-23 12:37
Is the equilibrium output and income Y is same in three sector model. So many questions answered in this way. Please help me in this regard
latest answer
Yes, in the three-sector model, equilibrium output Y Y is the same as equilibrium income. They equate when total expenditures match the total output of the economy. the term "output" often refers to the production of goods and services, while "income" refers to the earnings generated from that production. In a basic economic model, the total production (output) of an economy will equal the total expenditure or the total income earned by factors of production (like labor and capital). This equality forms the foundation of the national income accounting identity.
Gayathri K V
CA Inter
★ 13K+
3
414
Keynesian theory
Economics
answered on 18-Oct-23 18:59
Please anyone explain ans for 7(c)
latest answer
Change in Investment (ΔI): Given the updated investment from 160 to 195, the change is: ΔI = 195 - 160 = 35 Multiplier Effect: The Keynesian multiplier is given by: K = 1 / (1 - b + m) Where: b is the marginal propensity to consume (MPC) which is 0.6 from the consumption function, and m is the marginal propensity to import (MPI) which is 0.05. Plugging in the values: K = 1 / (1 - 0.6 + 0.05) = 1 / 0.45 = 2.2222 Change in Income (ΔY) due to Change in Investment: ΔY = ΔI * K = 35 * 2.2222 = 77.77 New Equilibrium Income (Ye): Ye = Original Y + ΔY = 533.33 + 77.77 = 611.1 Net Exports (X-M) at Ye: X-M = 20 - 0.05 * 611.1 = 20 - 30.555 = -10.555
Nagaraju Konerolu
CA Inter
★ 3K+
2
209
National Income
Economics
answered on 16-Oct-23 16:15
What is the difference between National Income accounting and Keynesian theory of determination of National Income?
latest answer
National income accounting is a system for measuring and quantifying economic activity, while the Keynesian theory of determination of national income is a macroeconomic framework that explains how changes in demand affect the level of national income and employment. They serve different purposes, with national income accounting providing data and the Keynesian theory offering insights into economic dynamics and policy implications.
sasidhar cheboyina
CA Final
★ 95
2
207
Sir please can you explain about this problem in indigo learn classes
Economics
answered on 12-Oct-23 17:53
Respected Sir, when I bought CA Foundation Dec-23 special course(yesterday) it is said they offer 28 modules and 62 hours of Business Economics classes(first photo) but when I check in my courses it is shown only for 13 modules and 26 hours(second photo) in Business Economics . So I kindly request you to explain about this.
latest answer
Thanks for the explanation sir
Saktheshvar R
CA Foundation
★ 0
2
237
3 sector economy
Economics
answered on 03-Oct-23 12:44
sir in illustration 39 - in sub question (b) Government expenses and leakages in Three-sector economy, Y is given 15L, C (consumption) we computed 3.6L and in computation of leakages ( Savings & Taxes ) we computed total leakages as 7.5 lakhs ( S- 7L & T- 0.5L ). In 3 sector economy , AD= AS(Y) => C+I+G = C+S+T = Y = C+S+T and here the Y is 15 lac , C, S, T 3.6, 7 and 0.5 respectively , that is not matching to the equilibrium income, please correct if there any misconception in this my side sir
latest answer
sir please give explanation, Y = C+S+T , but when we solving the sub question (b) the total of C+S+T doesn't match with the equilibrium income (Y)
Muhammed Salih
CA Inter
★ 17K+
2
222
3 sector economy
Economics
asked on 01-Oct-23 16:26
why in illustration 38 for computing sub question (a) Expenditure multiplier - we computed the new value for b/MPC, but not taking the given value 0.5 as b/MPC. In illustrations 22, 37 we solved the same multiplier using the given b/MPC. in that question also there is Yd
latest answer
No answers yet!!
Muhammed Salih
CA Inter
★ 17K+
0
189
3 sector economy
Economics
answered on 01-Oct-23 16:18
how to solve the (C) using investment multiplier equation. in class it solved using Y= C+I+G
latest answer
sorry not that C (consumption) . how the sub question (C) - Find the equilibrium level of income when investment increases by 120 crores, can solve using investment multiplier equation. in class it solved using ( Y= C+I+G ) the new investment
Muhammed Salih
CA Inter
★ 17K+
2
215
Guidance
Economics
answered on 24-Sep-23 17:53
Sir regarding ca intermediate economics I have started watching lectures and preparing notes from lectures and revising them in daily basis is this enough or I have to study icai module or indigolearn pdf material after completing of lectures please give some tips and guidance sir 🙏🙏
latest answer
Watch lectures, solve sums If you have a good understanding of the concepts it would be sufficient. If you feel unconfident, solve RTPs that are sufficient for economics.
Monika Monika
CA Inter
★ 2K+
2
231
National Income Accounting
Economics
answered on 15-Sep-23 09:39
What is the meaning of "current" transfers here ???
latest answer
Thank you sir
Neha Baliga
CA Inter
★ 16K+
2
215