The estimated money expenditure of the government during a fiscal year is known as Budget Expenditure. The two different kinds of budget expenditure are Revenue… Read More
Category Archives: Macroeconomics
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… Read More
As we know that Y = C + S, which means that as Consumption and Savings together make up income, the consumption curve and saving… Read More
The term Investment Multiplier is an important contribution made by Prof. J.M. Keynes. Keynes felt that an initial rise in investment multiplies overall income by a large… Read More
To understand the Working of Investment Multiplier, let us first understand the meaning of Investment Multiplier. What is Investment Multiplier? The term Investment Multiplier is… Read More
Meaning of Fiscal Policy A fiscal policy is the policy of the central government which aims at controlling the situation of the money supply in… Read More
Measures to control Deficient Demand When demand is not sufficient to fully utilise resources, it is referred to as Deficient Demand. In simple terms, when… Read More
Measures to control Excess Demand When demand is more than what is necessary to utilise resources fully, it is called Excess Demand. In simple terms,… Read More
When demand is more than what is necessary to utilise resources fully, it is called Excess Demand. In simple terms, when planned aggregate expenditure is… Read More
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… Read More
Excess and Deficient Demand in Three-Sector Economy When demand is more than what is necessary to utilise resources fully, it is called Excess Demand. However,… Read More
According to Keynesian theory, an equilibrium income level might correspond to full employment, underemployment, or over employment of resources. Similarly, when the economy is not… Read More
According to Keynesian theory, an equilibrium income level might correspond to full employment, underemployment, or over the employment of resources. Similarly, when the economy is… Read More
What is Excess Demand? When demand is more than what is necessary to utilise resources fully, it is called Excess Demand. In simple terms, when… Read More
The term expenditure describes a payment made in cash or on credit to buy or obtain goods or services. Liabilities incurred in the exchange of… Read More
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