After the implementation of economic reforms, Pakistan experienced slowdown of growth due to various reasons including _______ .
(Choose the correct alternative to fill in the blank):
(i) Volatile performance of the agriculture sector
(ii) Over-dependence on remittances from abroad
(iii) Political instability
Pakistan faced several challenges post-reforms:
Volatile agriculture sector: Inconsistent performance led to economic instability.
Over-dependence on remittances: A lack of diversification in revenue sources made the economy vulnerable.
Political instability: Created uncertainty, deterring foreign investment and slowing economic growth.
For a hypothetical economy, assume the government increased infrastructural investment by ₹10,000 crore. 80% of additional income is consumed in the economy. Estimate the increase in income and the corresponding increase in consumption expenditure in the economy.