Theories of National Income Determination
Theories of National Income Determination
Classical Theory of Output and Employment
- The Classical economy is based on the assumption of full employment, perfectly competitive...}
Theories of National Income Determination
Keynesian Model of Income Determination
- The Keynesian model was introduced to overcome the shortcomings of the classical model.
Theories of National Income Determination
Income determination in a Three and Four Sector Economy, Fiscal and Foreign Trade Multiplier
- Three sector consists of household, business and government sectors.
- The effecti...}
Theories of National Income Determination
IS LM Model of Income Determination
- IS-LM model is a combination of the product market and money market at equilibrium. ...}
Theories of National Income Determination
Shift in IS Curve, LM Curve and Their Effect on Equilibrium Income
- Reduce in desired national saving shifts the IS curve up.
- Increase in desired na...}
Theories of National Income Determination
Effect of Monetary Policy, Fiscal Policy and Monetray-Fiscal Policies Mix on Equilibrium Income
- Monetary policies control the money supply and shift the LM curve to let or right dependin...}