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Subject: Economics, asked on 25/12/17

Please explain the marked steps.

Subject: Economics, asked on 21/12/17

If AD > AS then the planned inventory would fall to get it back to normal level producers will increase production and employ more people, increase production and income leading to increase in AS
However increase in income would also lead to increase in expenditure further leading to increase in AD
Hence AS will always play catchup with AD
To break this loop of increasing AD leading increase in AS further leading to increase in AD what should be done in the economy?????

Subject: Economics, asked on 21/12/17

If high level of income leads to increase in expenditure and aggregate Demand which in turn leads to higher level of output, why can't Government print more currency notes to achieve higher level of Aggregate Demand and gross domestic product????

Subject: Economics, asked on 21/12/17

Real income increases by 5% while population increases by 2%
Find the increase in percentage of per capita real income???

Subject: Economics, asked on 14/12/17

Explain graphically the concept of inflationary gap?

Subject: Economics, asked on 14/12/17

Explain role of SLR and change in government expenditure in reducing excess demand in an economy?

Subject: Economics, asked on 11/12/17

An excess of AD over AS would always lead to inflationary gap
This statement should be correct However if this happens when AD is above full employment equilibrium then AD needs to be reduced to AS
However if this happens at a level of AD less than full employment then AD can be increased to the level of AS to ensure full employment equilibrium

Subject: Economics, asked on 4/12/17

Q-24

​Q24. Explain the concept of under unemployment equilibrium with the help of diagram. Show on the same diagram the additional investment expenditure required to reach full employment equilibrium.

Subject: Economics, asked on 29/11/17

Explain the determination of Equillibrium level of income using Aggregate Demand and Aggregate Supply Approach . Use Proper Schedule and Diagram 

Subject: Economics, asked on 17/11/17

As per formula AS = C+S
Which means that Income is either consumed or saved
However Income can also be invested
So why isnt the formula AS=C+S+I???
Is it because we are only considering Autonomous Investment which is made irrespective of the income level and hence Investment is NOT a part of the formula

Subject: Economics, asked on 16/11/17

If in an economy, investment is greater than saving, what is the effect on national income?

Subject: Economics, asked on 8/11/17

Please explain these two graphs

The AS curve in both cases is line inclined at 45 degrees however on the Y axis the labelling is Consumption and Saving, Consumption respectively which is definitely NOT equal to AD.
So please explain why AS is inclined at 45 degrees in both these graphs?

Subject: Economics, asked on 8/11/17

As per Expenditure method of National income, We only include the final expenditure incurred by all sectors. But the entire income is never spent. A part of it is also saved
So how do we account for the Savings in the National income via expenditure method????

Subject: Economics, asked on 8/11/17

Why is AS = C + S???
The logic given is that Income is either used for consumption purposes or is saved
But income can also be invested
So shouldnt it be AS = C + S + Y????

Subject: Economics, asked on 29/8/17

Q. Why MPC can never be more than one? Please explain in layman terms and if possible also give an example.?
Don't give reason that is given in the picture below, i couldnt understand that.
MPC cannot be more than one as change in consumption cannot be more than change in income.

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