In an economy where people always consume half of any additional income and save the other half, an additional Govt. expenditure of ' 20,000 can create an additional income of

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National income accounting is a government bookkeeping system that measures a country's economic activity - offering insight into how an economy is performing. Such a system will include total revenues by domestic corporations, wages paid, and sales and income tax data for companies.


In an economy where people always consume half of any additional income and save the other half, an additional Govt. expenditure of ' 20,000 can create an additional income of