Units of Output | Average Variable Cost (AVC)(Rs.) | Total Cost (TC)(Rs.) | Marginal Cost (MC)(Rs) | Total Fixed Cost (TFC)(Rs) |
1 | 20 | - | - | - |
2 | 15 | - | - | 20 |
3 | 20 | - | - | - |
4 | 31 | - | - | - |
What will happen to an economy if aggregate demand increases 6eyoncf full employment level? Explain using a graph. |
or |
What is meant by full employment and involuntary unemployment? Explain along with the position of demand of labour and supply of labour in these situations. |
Legal Reserve Ratio (LRR) consists of two ratios as its components. Explain those components. |
or |
Explain the components of demand deposits. |
(i) The level of income at which Average Propensity to Consume (APC) is equal to one. |
(ii) A level of income at which Average Propensity to Save (APS) is negative. |
(i) Gross Domestic Product at Market Price |
(ii) Factor Income to Abroad |
S. No. | Items | (Rs.)in crores |
(i) | Compensation of Employees | 1,000 |
(ii) | Net Exports | (-) 50 |
(iii) | Profits | 400 |
(iv) | Interest | 250 |
(v) | Rent | 150 |
(vi) | Gross National Product at Factor Cost | 1,850 |
(vil) | Gross Domestic Capital Formation | 220 |
(viii) | Net Fixed Capital Formation | 150 |
(ix) | Change in Stock | 20 |
(x) | Factor Income from Abroad | 30 |
(xi) | Net Indirect Taxes | 100 |
(i) Nominal GDP can be less than real GDP. |
(ii) Change in stock is a stock variable. |
(iii) Capital formation is a flow variable. |
(iv) National debt interest is not a transfer payment. |
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