Q.3 (i) Define the term corn- economy (i) Define the term corn economy (ii) Given the...
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Q.3 (i) Define the term "corn- economy" (i) Define the term "corn economy" (ii) Given the following data for a hypothetical economy;- C = 50+ 0.8 Ya (i) (ii) (iii) I= 70 Crores G=200Crores, TR100 Crores t = 0.2 Calculate the equilibrium level of income and multiplier in this model, Calculate also the budget surplus, Suppose that t increases to 0.25. What is the new equilibrium income? The new multiplier. (9.759) Q.3 (i) Define the term "corn- economy" (i) Define the term "corn economy" (ii) Given the following data for a hypothetical economy;- C = 50+ 0.8 Ya (i) (ii) (iii) I= 70 Crores G=200Crores, TR100 Crores t = 0.2 Calculate the equilibrium level of income and multiplier in this model, Calculate also the budget surplus, Suppose that t increases to 0.25. What is the new equilibrium income? The new multiplier. (9.759)
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Q3 Corn Economy In corn economy there is no foreign exchange market Real exchange rate does not de... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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