In a single day Raju, the barber, collec | 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’.

Would the central bank need to intervene in a managed floating system? Explain why.

Do you consider a commercial bank ‘creator of money’ in the economy?

Explain the relation between government deficit and government debt.

Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.

Differentiate between balance of trade and current account balance.

Does public debt impose a burden? Explain.

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

Suppose marginal propensity to consume is 0.75 and there is a 20 per cent proportional income tax. Find the change in equilibrium income for the following (a) Government purchases increase by 20 (b) Transfers decrease by 20.

Describe the Great Depression of 1929.

Discuss the issue of deficit reduction.