We suppose that C = 70 + 0.70Y D, I = 90 | Class 12 Macro Economics Chapter Government Budget and Economy, Government Budget and Economy NCERT Solutions

Differentiate between devaluation and depreciation.

What is a barter system? What are its drawbacks?

Write down some of the limitations of using GDP as an index of welfare of a country.

Explain the relation between government deficit and government debt.

From the following data, calculate Personal Income and Personal Disposable Income.
                                                                               Rs (crore)
(a) Net Domestic Product at factor cost                    8,000
(b) Net Factor Income from abroad                              200
(c) Undisbursed Profit                                                1,000
(d) Corporate Tax                                                         500
(e) Interest Received by Households                         1,500
(f) Interest Paid by Households                                  1,200
(g) Transfer Income                                                       300
(h) Personal Tax                                                            500

Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.

Give the relationship between the revenue deficit and the fiscal deficit.

Discuss the issue of deficit reduction.

What is the difference between ex ante investment and ex post investment?

Explain ‘Paradox of Thrift’.

Write down some of the limitations of using GDP as an index of welfare of a country.

What is a barter system? What are its drawbacks?

What is money multiplier? What determines the value of this multiplier?

What are the main functions of money? How does money overcome the shortcomings of a barter system?

The value of the nominal GNP of an economy was Rs 2,500 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was Rs 3,000 crores. Calculate the value of the GNP deflator of the year in percentage terms. Has the price level risen between the base year and the year under consideration?

What are official reserve transactions? Explain their importance in the balance of payments.

What are the instruments of monetary policy of RBI?

What is transaction demand for money? How is it related to the value of transactions over a specified period of time?

What is the difference between planned and unplanned inventory accumulation? Write down the relation between change in inventories and value added of a firm.

Explain why public goods must be provided by the government.