Managerial Economics National Income

2704 WordsNov 8, 201011 Pages
Assaignment topics: Nature , conceps , measurement of nation income Classical and Keynes approaches nATIONAL INCOM E: ----The t otal sum of goods and services produced by t he people of a count ry wit h t he help of capit als and national resources called Nat ional Income (Prof. Alfred Marshall) We can define Nat ional Income as t he collective achievement of a nat ion. In t his way, t he Nat ional Income is t he aggregat e of t he individual incomes. (Prof. Gardner Ackley) Nat ional Income is t he basic concept of economic, which refers t o t he market value of t he goods and services produced during a part icular year. (Prof. Richard Lipsy) CONCEPTS OF NATIONAL INCOme ----1.GROSS DOMESTIC PRODUct Total value of output (goods and…show more content…
Instead of looking so much |i|CLASSICAL ECONOMISTS-economists who | |at individual people and businesses and their economic decisions, macroeconomics deals with the |c|believe in no government regulation | |overall pattern of the economy. To star with, we will look at two main groups of economists: the |]|of the economy | |Classical Economists and the Keynesian Economists. Classical economists generally think that the | |KEYNESIAN ECONOMISTS-economists who | |market, on its own, will be able to adjust while Keynesian economists believe that the government | |believe in government regulation of | |must step in to solve problems. The two camps have differing ideas on the causes and solutions of | |the economy | |unemployment. The Classical economists believe that unemployment is caused by excess supply, which | | | |is caused by the high price level of labor. Based on supply and demand, when wages are held too high| | | |by social and political
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