Define budget deficit and trade deficit. | Class 12 Macro Economics Chapter National Income Accounting, National Income Accounting 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’.

‘The fiscal deficit gives the borrowing requirement of the government’. Elucidate.

What is a barter system? What are its drawbacks?

Why is the open economy autonomous expenditure multiplier smaller than the closed economy one?

Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of Indirect taxes – Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.

Explain the automatic mechanism by which BoP equilibrium was achieved under the gold standard.

Explain ‘Paradox of Thrift’.

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

What is the difference between microeconomics and macroeconomics?

How is the exchange rate determined under a flexible exchange rate regime?

Write down the three identities of calculating the GDP of a country by the three methods. Also briefly explain why each of these should give us the same value of GDP.