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Dear Students!

This is to inform that Graded Discussion Board (GDB) No. 01 will be opened on 18 November, 2015 for discussion and last date for posting your discussion will be 19 November, 2015.

 

This Graded Discussion Board will cover first 9 lessons.

The Case:

Kenya is one of the fastest growing economies of Africa according to latest economic updates published by World Bank. In these updates, it has been reported that this economy needs sound economic policies for future improvement.  Suppose Government of Kenya decides to implement the manifesto in a true manner and spirit. Long and short of this manifesto is that 35% of the government spending will be used on infrastructure (motorways, railways, dams and public places) while 45% of government spending will be used on education, health, promotion of cottage scale industry and welfare programs while remaining amount for weapon and defense.

 Requirement:

Keeping in view the above facts and figures, analyze how would this government spending affect the income and consumption of the people of Kenya.

Note:

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Replies to This Discussion

Government spending:
45% on Infrastructure
35% on Education, Health, Welfare of public etc.
20% on Defense & Weapons
-------------
What will be effect on Income & Consumption of the People of Kenya?
------------

Please Discuss here about this GDB.Thanks

Our main purpose here discussion not just Solution

We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions.

 

GDB Solution Eco 403

Government spending:
45% on Infrastructure
35% on Education, Health, Welfare of public etc.
20% on Defense & Weapons
OTHER MEASURES OF INCOME Net National Product (NNP) It is GNP adjusted for depreciation. NNP = GNP – Depreciation National Income (NI) NI = NNP – Indirect Business Taxes Personal Income (PI) = NI – Corporate Profits – Social Insurance Contributions – Net Interest + Dividends + Govt. transfers to Individuals + Personal Interest Income Disposable Personal Income (DPI) = PI - Tax CONSUMER PRICE INDEX (CPI) CPI is a measure of the overall level of prices. It is published by the Federal Bureau of Statistics. It is used to: • Track changes in the typical household’s cost of living. • Adjust many contracts for inflation (i.e. “COLAs”: Cost of Living Adjustments). • Allow comparisons of dollar figures from different years. HOW TO CONSTRUCT THE CPI 1. Survey consumers to determine composition of the typical consumer’s “basket” of goods. 2. Every month, collect data on prices of all items in the basket; compute cost of basket 3. CPI in any month equals Cost of basket in that  month 100 Cost of basket in base period

ye exact solution h ?

Government spending:
45% on Infrastructure
35% on Education, Health, Welfare of public etc.
20% on Defense & Weapons

kuch samaj nahy ai abi tak , koi ha batane wala kh karna kya ha is GDB me ?

GDB Solution Eco 403
Government spending:
45% on Infrastructure
35% on Education, Health, Welfare of public etc.
20% on Defense & Weapons

Other measures of income Net National Product (NNP) It is GNP adjusted for depreciation. NNP = GNP – Depreciation National Income (NI) NI = NNP – Indirect Business Taxes Personal Income (PI) = NI – Corporate Profits – Social Insurance Contributions – Net Interest + Dividends + Govt. transfers to Individuals + Personal Interest Income Disposable Personal Income (DPI) = PI - Tax CONSUMER PRICE INDEX (CPI) CPI is a measure of the overall level of prices. It is published by the Federal Bureau of Statistics. It is used to:
• Track changes in the typical household’s cost of living.
• Adjust many contracts for inflation (i.e. “COLAs”: Cost of Living Adjustments).
• Allow comparisons of dollar figures from different years. HOW TO CONSTRUCT THE CPI
1. Survey consumers to determine composition of the typical consumer’s “basket” of goods.
2. Every month, collect data on prices of all items in the basket; compute cost of basket
3. CPI in any month equals Cost of basket in that month 100 Cost of basket in base period

Government spending:
45% on Infrastructure
35% on Education, Health, Welfare of public etc.
20% on Defense & Weapons
OTHER MEASURES OF INCOME Net National Product (NNP) It is GNP adjusted for depreciation. NNP = GNP – Depreciation National Income (NI) NI = NNP – Indirect Business Taxes Personal Income (PI) = NI – Corporate Profits – Social Insurance Contributions – Net Interest + Dividends + Govt. transfers to Individuals + Personal Interest Income Disposable Personal Income (DPI) = PI - Tax CONSUMER PRICE INDEX (CPI) CPI is a measure of the overall level of prices. It is published by the Federal Bureau of Statistics. It is used to: • Track changes in the typical household’s cost of living. • Adjust many contracts for inflation (i.e. “COLAs”: Cost of Living Adjustments). • Allow comparisons of dollar figures from different years. HOW TO CONSTRUCT THE CPI 1. Survey consumers to determine composition of the typical consumer’s “basket” of goods. 2. Every month, collect data on prices of all items in the basket; compute cost of basket 3. CPI in any month equals Cost of basket in that  month 100 Cost of basket in base period

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