Mrs. Rekha rajan, PGT(Eco)
UNIT: NATIONAL INCOME ACCOUNTING & INCOME DETERMINATION
- Calculate Private income and Personal disposable income:
Income from domestic product accruing to private sector 4000
Savings of non departmental enterprises 200
Current transfer from Govt. Administrative department 150
Savings of private sector 400
Current transfers from rest of the world 50
Net factor income from abroad -40
Corporate tax 60
Personal Taxes 140
- Calculate NDP FC and Gross National Disposable Income:
Private Final Consumption Expenditure 250
Net factor Income from abroad 50
Government final consumption expenditure 50
Consumption of fixed capital 25
Net exports -10
Net domestic capital formation 30
Indirect tax 20
- If APC is 0.98 Find APS.
- Consumption function is C = 300 + 0.67 Y, Find MPS.
- Consumption Function is C = 100+0.25 Y. Prove that with increase in income APC decrease.