Day: April 27, 2021

Difficulties in Measurement of National Income

Difficulties in Measurement of National Income

Difficulties in Measurement of National Income Estimating national income is quite a complicated task. It is beset with difficulties of various kinds. These difficulties in the measurement of national income can be broadly classified into two categories: (a) conceptual difficulties, and (b) practical difficulties. While conceptual problems are of general nature and appear in almost …

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expenditure method

A Guide To The Expenditure Method of Measuring GDP

Expenditure Method (or Spending Approach) The expenditure method measures GDP as the aggregate of all the final expenditure on the gross domestic product at market price in an economy during an accounting year. Final expenditure means expenditure on final products. The total income generated in the economy can be spent either on consumer goods or …

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Microeconomics and Macroeconomics

Microeconomics and Macroeconomics (Differences and Interdependence)

Difference Between Microeconomics and Macroeconomics Microeconomics and Macroeconomics differ as follows: Nature of the Study of Economic Units Microeconomics studies the individual or small economic variables of the economy such as individual consumers’ savings, investment, and income. But macroeconomics deals with aggregates like national income, full employment and price level, etc. The objective of the …

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macroeconomic issues

A Guide To The “6 Major Macroeconomic Issues”

Issues in Macroeconomic The main macroeconomic issues are: Employment and unemployment Inflation Stagflation and deflation Business cycles Economic growth The balance of payments and exchange rate The main macroeconomic issues are discussed below: Employment and Unemployment The major issue in macroeconomics is to explain what determines the level of employment and national income in an …

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macroeconomics

What is Macroeconomics? It’s Meaning and More

What is Macroeconomics? Macroeconomics is concerned with the nature, relationship, and behavior of such aggregate quantities and averages such as national income, total consumption, saving, investment, total employment, general price level, aggregate expenditure, and the aggregate supply of goods and services. In other words, it studies economic elements as a whole. The subject matters of …

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