How are capital receipts different from revenue receipts? Discuss briefly.

Define the problem of double counting in the computation of national income. State any two approaches to correct the problem of double counting.

OR

“Gross Domestic Product (GDP) does not give us a clear indication of the economic welfare of a country.” Defend or refute the given statement with valid reason.

If in an economy :

Change in initial Investments (ΔI) = ₹ 500 crores

Marginal Propensity to Save (MPS) = 0.2

Find the values of the following :

(a) Investment multiplier (k)

(b) Change in final income (ΔY)

State and discuss the components of Aggregate Demand in a two-sector economy.

OR

In the given figure, what does the gap ‘KT’ represent? State any two fiscal measures to correct the situation.

For Blind Candidates :

What is meant by the deflationary gap? State any two fiscal measures to correct the situation of the deflationary gap.

For Blind Candidates :

What is meant by the deflationary gap? State any two fiscal measures to correct the situation of the deflationary gap.