Author: admin
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Revenue Receipt and Revenue Expenditure: Meaning and Classification
The Government Budget is a statement of expected receipts and expected expenditures of the Government (for the coming fiscal year) that reveals the budgetary policy of the Government to achieve the twin objective of growth and stability. The financial/fiscal year is taken from 1st April to 31st March. The Budget unfolds (i) the financial performance of the…
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Government Budget : Characteristics, Objectives and Components
What is Budget? Both the Government and private sector are crucial in a mixed economy like India. The Government requires infrastructural, economic, and welfare activities for maximizing the welfare of the country. There is a need for a vast amount of money to finance these activities. The government also generates revenue from various sources like…
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Relationship between different propensities (APC, MPC, APS and MPS)
The four different types of propensities are Average Propensity to Consume (APC), Marginal Propensity to Consume (MPC), Average Propensity to Save (APS), and Marginal Propensity to Save (MPS). Average Propensity to Consume (APC) It is the ratio of consumption expenditure to the corresponding income level. The formula to determine Average Propensity to Consume (APC) is:…
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Difference between APS and MPS
The functional relationship between saving and national income is known as Saving Function. It shows the savings of households during a given period of time at a given income level. In alternate terms, the savings function shows different savings levels at different income levels in an economy. Saving function is also known as Propensity to…
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Types of Propensities to Save
The functional relationship between saving and national income is known as Saving Function. It shows the savings of households during a given period of time at a given income level. In alternate terms, the savings function shows different savings levels at different income levels in an economy. Saving function is also known as Propensity to Save,…
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What is Saving Function (Propensity to Save)?
The functional relationship between saving and national income is known as Saving Function. It shows the savings of households during a given period of time at a given income level. In alternate terms, the savings function shows different savings levels at different income levels in an economy. Saving function is also known as Propensity to Save…
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Difference between APC and MPC
The functional relationship between consumption and national income is known as Consumption Function. It represents the willingness of households to purchase goods and services at a given income level during a given period of time. It is represented as C = f(Y). The consumption function is a psychological concept that shows consumption levels at different…
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Types of Propensities to Consume
The functional relationship between consumption and national income is known as Consumption Function. It represents the willingness of households to purchase goods and services at a given income level during a given period of time. It is represented as C = f(Y). The consumption function is a psychological concept that shows consumption levels at different income…
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What is Consumption Function
The functional relationship between consumption and national income is known as Consumption Function. It was introduced by John Maynard Keynes and represents the willingness of households to purchase goods and services at a given income level during a given period of time. It is represented as C = f(Y); where C = Consumption, Y = National…
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Explain the Components of Aggregate Supply or National Income.
The money value of all the final goods and services that all the producers are willing to supply in a given time period in an economy is known as Aggregate Supply. Also, when we express aggregate supply in physical terms, then it is an economy’s total output of goods and services. The value of total output…