Indian Economy Questions

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.

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.

A negative supply shock in the sho rt run causes the aggregate supply curve to shift to the left.

The multiplier effect means that "An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent."