Suppose the Cabinet Secretary for planning and development in a hypothetical economy characterized by youth unemployment and
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose the Cabinet Secretary for planning and development in a hypothetical economy characterized by youth unemployment and inequality in income distribution, takes account of a typical humanitarian behaviour with respect to giving handouts of $12000million and the response of government spending the same amount of money to address unemployment situation in the economy.
a). Show how each of the two actions may affect growth of the economy, assuming MPC of 0.75.
(8marks)
(b). Which activity would benefit the economy than the other and why? (4marks).
(c). Explain the significance of zero budgeting concept to the economy described above.
(3marks)
Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
Posted Date: