What do you meant by equilibrium national income, Financial Econometrics

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Question 1:

a) What do you meant by equilibrium National Income and to what extent is economic growth beneficial to an economy?

b) Explain using both diagrams and mathematical tools, why a 20% increase in investment leads to a higher percentage increase in National Income?

Question 2:

Notwithstanding the economic vulnerabilities faced by as a small island economy, Mauritius is an example of economic success. However, a number of factors are presently impinging on the prospects for future economic growth. Discuss.


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