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Posted by Komal Priya 6 years, 1 month ago
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Yogita Ingle 6 years, 1 month ago
The extent to which current Aggregate Demand becomes higher than the Aggregate Demand required for full employment, it is termed as inflationary gap. Figure showing inflationary gap:
In this figure, full employment equilibrium struck at point E. If the level of demand increases to {tex}{{AD}_{1}}{/tex}
it is in excess of what is required to maintain full employment. This causes inflation. Inflationary Gap = EF (the difference between AD and {tex} {{AD}_{1}}{/tex}.
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Prerna Dewani 6 years, 1 month ago
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Kshitij Awasthi 6 years, 1 month ago
Yogita Ingle 6 years, 1 month ago
Aggregate demand is the total demand for goods and services in the economy at a given point in time. It is the sum total of the demand for the actual output in the economy by each sectors operating within the economy. It represents the total demand for the goods and services produced and consumed in the economy.
Aggregate supply is the total quantity of the commodity that is offered for sale in the market at any particular point of time. It is the total quantity of commodities and services that the firms are willing and able to sell in the market. It is represented by the upward sloping 45-degree line.
The 45° line represents all points at which aggregate demand and aggregate supply (total output) are equal. The AD curve is the upward-sloping curve that starts from a point above the origin. The point where AD curve intersects the 45-degree line is the equilibrium point. This point represents the total output that the economy produces and sells without creating any disturbances in the economy. The 45-degree line depicts the points where AD=AS. Any deviations of AD from this point is bound to create economic distortions either in the form of the inflationary gap or deflationary gap.
Posted by Aahna Kansal 6 years, 1 month ago
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Yogita Ingle 6 years, 1 month ago
Nominal income is the income one gets in money terms and real income is the amount of goods and services a person can buy from the nominal income. Nominal income is calculated with current year price and real income is calculated with base year' price. Real income is calculated by dividing nominal income by the price level. For example:
If Real income is Rs.400 and Price Index is 105, Nominal Income will be Real Income = (Nominal Income,/Price Index of the Current Year) x 100
400 = (Nominal Income/105) x 100 nominal income= Rs.420
Posted by Brijesh Kumar Singh 6 years, 1 month ago
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Sia ? 6 years, 1 month ago
The characteristic of developed nations:
- High standard of living.
- Most of the GDP came from the industry sector.
- High GDP per capita.
- Low corruption.
- Mainly urban citizens.
- Advanced public transportation.
- Low poverty.
- Low number of homelessness.
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Anamika Singh 6 years, 1 month ago
Samar Gagneja Panjabi Boy Samar 6 years, 1 month ago
Posted by Sanki Siangshai 6 years, 1 month ago
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Aaid Jainism 6 years, 1 month ago
Basudev Hembram 6 years, 1 month ago
"A person is considered poor if his or her income level fall below some minimum level necessary to meet basic needs.”
Posted by Sanki Siangshai 6 years, 1 month ago
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Yogita Ingle 6 years, 1 month ago
Poverty is the inability to fulfill the minimum requirement of life like food, clothing, housing education and health facilities etc.
Relative poverty refers to poverty of people in comparison to other people in different region or nations.
Absolute poverty refers to total number of people living below the poverty line.
Posted by Abhishek Sharma 6 years, 1 month ago
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Sia ? 6 years, 1 month ago
Since the sum of MPC and MPS is unity. Any increase in Marginal Propensity to save (MPS) would directly lead to decrease in Marginal Propensity to Consume (MPS). This means that it may lead to lesser proportion of the additional income going for consumption which is a vital factor of Aggregate Demand Expenditure. This may further lead to fall in equilibrium level of income in the economy.
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Mani Kumari 6 years ago
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Shruti Jain 6 years, 1 month ago
Posted by S.S. Producation 6 years, 1 month ago
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Yogita Ingle 6 years, 1 month ago
| Autonomous transactions | Accommodating transactions |
| Autonomous transactions are independent of the state of balance of payments account (BOP A/c) | An accommodating transactions are undertaken to maintain the balance in BOP account |
| These transactions take place on both current and capital accounts. | These transactions take place only on capital account |
Posted by Rahul Gupta 6 years, 1 month ago
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Sia ? 6 years, 1 month ago
The main features of sustainable development are:
- It respects and cares for all kinds of life forms.
- It improves the quality of the human life.
- It minimises the depletion of natural resources.
Posted by Himadri Rajkhowa 6 years, 1 month ago
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Sia ? 6 years, 1 month ago
Saving function refers to the functional relationship between saving (S) and income (Y), S= f(Y). Savings function as derived from the Consumption function is S=Y-C. Savings increases as Y(income) increases implying that S is positively related to Y.
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Anamika Singh 6 years, 1 month ago
1Thank You