National Income and Related Aggregates-Circular Flow of National Income (CBSE Class-12 Economics): Questions 1 - 2 of 2

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 523 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 900.00 or

Question number: 1

» National Income and Related Aggregates » Circular Flow of National Income

Essay Question▾

Describe in Detail

Explain equilibrium level of national income using Savings and Investment approach. Draw diagram in support of your explanation.

Explanation

The equilibrium level of national income

The Equilibrium Level of National Income

This image of equilibrium level of national income

In this figure equilibrium level of national income with reference to equality between S and I.

Equilibrium level of income is determined at point when planned saving is equal to planned investment. SS curve is saving… (7 more words) …

Question number: 2

» National Income and Related Aggregates » Circular Flow of National Income

Essay Question▾

Describe in Detail

While estimating national income, how will you treat the following? Give reasons for your answer.

(i) Imputed rent of self-occupied houses.

(ii) Interest received on debentures.

(iii) Financial help received by flood victims

Explanation

(i) Imputed rent of self-occupied houses is included in estimation of national income as self-occupied house contain some value.

(ii) Interest received on debentures included in estimation of national income as it is part of factor income.

(iii) Financial help received by flood victims is included as transfer payment.

Sign In