Indian Economy Questions

Government imposes taxes to run the machinery of the state. Taxes serve as the main source of income for the government revenue.

Disposable income is the amount of money that households have available for spending and saving after income taxes have been accounted for.

A decline in disposable income means a movement down along an economy's consumption schedule.

Capitalism is an economic system in which private entities or businesses own capital goods.

Money spent by the government on government programs such as road work, electricity work, manhole, etc... that are aiming to contribute to the nation's social welfare in long and short term are referred to as Goverment Expenditures.

The long-run aggregate supply curve is vertical because it is at the full-employment or potential output. Because the economy's potential output is determined by the availability and productivity of real resources, not by the price level. That means that even if demand increases, firms can't hire new workers and expand because everyone is already working.

Macroeconomics is the study of overall aggregate changes, behavior and performance of the economy of the country i.e, unemployment, GDP, inflation, etc...