Answer required for q.22 b.

Answer required for q.22 b. Level of Income 400 500 Consumption Lrpenditure (t) 240 320 395 465 MPC 4 MPS Q.22. (a) In India there are large scale inequalities of income and wealth. The rich are becoming richer and the poor are becoming poorer. Suggest what measures the government should take to reduce the gap between the rich and the poor. (b) From the following data about a government budget find: (i) revenue deficit (ii) fiscal deficit and (iii) Primary defcit. (1) Tax revenue Capital receipts (iil) Non tax revenue (iv) Borrowings (v) Interest payment> (t in Arab) 34 10 32 20 80 Revenue expenditure Q.23. What is meant by money supply? Explain different measures of money supply adapted by RBI in India. Explain the following problems of barter system of exchange: 't) Lack of double coincidencx• of wants Nit) Lack of standard of deferred payments. There are only two producing sectors A and B in an economy. Calculate (a) Gross Value added at MP by each sector, (b) National Income: (R in crore)