The upcoming discussion will update you about the difference between functional distribution and personal distribution. In the theory of distribution we are concerned with the functional distribution of income (i.e., how national income is divided among workers, landowners, capitalists) and not with the size distribution of income (i.e., whether the rich are getting richer and the poor poorer). The functional [...]
In this article we will discuss about Income Distribution in India. After reading this article you will learn about: 1. Pattern of Income Distribution in India and 2. Inequalities in Income Distribution during the 1970s, 1980s and in Recent Times. Pattern of Income Distribution in India: The distribution of national income in India totally remained in-equal although its volume has [...]
Equilibrium Income: Determination and Changes! Determining Equilibrium Income: The first condition for an equilibrium level of income (output) from equation (2) is Y = C + I + G Equilibrium income (Y) is the endogenous variable to be determined. The autonomous components of expenditure, I and G, as also T are exogenous variables determined by factors outside the model. Consumption [...]