Introduction: Saving function is the counter part of consumption function because S=Y-C. Therefore S=f(Y). Saving means economic surplus, it may be defined as the difference between current income and current consumption. Keynes defined savings as…
Introduction: J.M Keynes created the theory of liquidity preference theory of interest to explain the role of the interest rate by supply and demand for money in 1936. According to Keynes the rate of interest…
Introduction: The Keynesian concept of consumption function stems from the fundamental psychological law of consumption which states that there is a common tendency for people to spend more on consumption when income increases but not…
Introduction: The classical economist believed in the existence of full employment in the economy. To them full employment was a normal situation and any deviation from this regard as something abnormal. According to Pigou the…
Introduction: The estimation of national income refers to the process of calculating the total economic output of a country over a specific period, usually a year. National income is a key indicator of a country’s…
INTRODUCTION: The estimation of national income refers to the process of calculating the total economic output of a country over a specific period, usually a year. National income is a key indicator of a country’s…
Meaning: Macro economics is that branch of economics which deals with the study of aggregate or average behavior of the entire economy. In it we study the collective functioning of the entire economy. It deals…
Introduction: Features of macro economics is the important part of study of macro economics. Macroeconomics is a branch of economics that focuses on the study of the entire economy as a whole. It examines aggregate…
Multiplier meaning: The multiplier refers to the effect of changes in investment outlays on aggregate income through induced consumption expenditure. Thus the multiplier express a relationship between an initial increment of investment and the resulting…
Social Accounting Meaning: Social accounting meaning, is nothing but national income accounting or social and environmental accounting, that extends traditional financial accounting to include social and environmental factors. This broader concept provides a more broad…