The determination of equilibrium national income, Managerial Economics

THE DETERMINATION OF EQUILIBRIUM NATIONAL INCOME

National income is said to be in equilibrium when there is no tendency for it either to increase or for it to decrease.  The actual National Income achieved at that point is referred to as the equilibrium National Income.

For there to be equilibrium, firm spending must be equal to firm's receipts.  If this were not the case, the firms will receive less and lose money until there is no more money in the system.  Hence, for there to be equilibrium:

 Factor Incomes = Consumer Spending

Posted Date: 11/28/2012 6:35:31 AM | Location : United States







Related Discussions:- The determination of equilibrium national income, Assignment Help, Ask Question on The determination of equilibrium national income, Get Answer, Expert's Help, The determination of equilibrium national income Discussions

Write discussion on The determination of equilibrium national income
Your posts are moderated
Related Questions
Q. What is Internal Diseconomies of Scale? Internal economies of scale exist only up to a certain size of the plant. Size of plant is called the optimum plant size since with t

"A budget deficit that is only temporary cannot be the source of inflation."  Is this statement true, false, or uncertain?  Describe your answer.

Problem 1: a) Explain what is meant by ‘price discrimination' and what are the different types of price discrimination. b) Under what conditions is it possible and profitabl

Country A has a fixed exchange rate with country B. Due to a recession in country B, demand for A's goods falls. Draw what would happen on the graph below. On the graphs, draw what

Plot the demand schedule and draw the demand curve for the data given for Marijuana in the caseabove.

Shifts in demand curve Shifts in the demand curve are brought about by the changes in factors like taste, prices of other related commodities, income etc other than the price

Ask question #MinimumElectron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sen

Bank Deposit Bank notes and coins together constitute the currency in circulation.  But they form only a part of the total money supply.  The larger part of the money supply i


Disadvantages of Perfect Competition There is a great deal of duplication of production and distribution facilities amongst firms and consequent waste. Economies of sc