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Replies to This Discussion

o bhai solution das dio tuwadi meharbaniiiii

thora e tym reh gaia

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.


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

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 m onth 100 Cost of basket in base period

 ahmad sir please post your reply in this discussion thanks 

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best of luck :)


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