Theoretical tools are capable of describing the process of Income Determination, which determines the values of these variables. They attempt to provide theoretical explanations to questions such as what causes periods of slow growth or recessions in the economy, or increment in the price level, or a rise in unemployment. Models concentrate on the determination…
National Income (N.I.) is the aggregate of the year’s income earned by the normal resident of a country in the accounting year. In other words, it is the value of final goods and services produced by the normal residents of a country. It is measured in terms of gross domestic product (G.D.P.), and its variants…
Economics is the social science that focuses on the production, distribution and consumption of goods and services. What is an Economic activity? All activities involving money are called economic activities. It is any activity that contributes to that economy. Economic activity occurs when resources such as capital, labour, manufacturing techniques or intermediary products are combined…