If nominal income is Rs 500 and the price index is 125, calculate the real income.

Define fiscal deficit.

An economy is in equilibrium. Find investment expenditure.

National income = 1200

Autonomouns consumption expenditure = 150

Marginal propernsity to consumer = 0.8

Explain the role of the cash reserve ratio in controlling credit creation.

Calculate net national product at a market price and private income

Net Current transfer to abroad 10

Private final consumption expenditure 500

Current transfer from government 30

Net factor income to abroad 20

Net export -20

Net indirect tax 120

National debt interest 70

Net domestic capital formation 80

Income accruing to government 60

Government final consumption expenditure 100