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Chassis In an automobile, all the subsystems excluding the body is called as Chassis. Construction of the chassis The layout of various subsystems is shown in the figure. In the present manufacturing of the vehicle, the body is separately fabricated and it is mounted over the chassis. The importance subsystems that are connected in the […]
Introduction: Monetary Economics is a branch of economics that provides a framework for analyzing money and its functions as a medium of exchange, store of value and unit of account. It examines the effects of monetary systems including regulation of money and associated financial institutions. Money 1 Meaning: Money is anything that is generally accepted […]
Effective Demand The starting point of Keynes theory of employment and income is the principle of effective demand. Effective demand denotes money actually spent by the people on products of industry. The money which entrepreneurs receive is paid in the form of rent, wages, interest and profit. Therefore effective demand equals national income. An increase […]
In India, a special conceptual problem is posed by the existence of a large, unorganised and non-monetised subsistence sector where the barter system still prevails for transacting goods and services. Here, a proper valuation of output is very difficult. Difficulties: 1 Transfer payments 2 Difficulties in assessing depreciation allowance 3 Unpaid services 4 Income from […]
Methods of Measuring National Income All goods and services produced in the country must be counted and converted against money value during a year. Thus, whatever is produced is either used for consumption or for saving. Thus, national output can be computed at any of three levels, viz., production, income and expenditure. Accordingly, there are […]
What is national income : National Income provides a comprehensive measure of the economic activities of a nation. It denotes the country’s purchasing power. The growth of an economy is measured by the rate at which its real national income grows over time. National income thus serves as an instrument of economic planning.Further, national income […]