jnu sis

[ritu]

does anybody know how to find elasticity of imports from  diagram of offer curve???????the geometric formula for it???


q1.consider an economy described by following equations:
C=C0+0.8 Yd      T=T0+0.25 Y    Y =C+i+g

where Yd=Y-T is the disposable income.given this information ,what is  the change in national income if the govt reduces autonomous taxes by 50 ....
a.increases by 100
b.decreases by 100
c.increases by 125
d.decreases by 125

[aditi5000]

Ritu you amaze me.. I don't feel like studying at all!! :P

[anon_econ]

lol aditi

[ritu]

hey...hehe...not really....
:p

[anon_econ]

initially AD would increase by 0.8*50=40. and the multiplier is 1/(1-0.8*0.75)=2.5..so i think it'll be (a).

[tim]

Cn someone tell how to solve Q16 of this ppr, where v hv to find is lm equtns. Pls help !!

[ritu]

2.consider the following aggregated demand sysytem:
Md=AD-r
Md/p=Ms/p
AD=C+I+G
C=1+0.5Y
I=1-0.5Y
derive is-lm equations.

m unable to find is-lm...pls help if sombdy has dn this....

[aditi5000]

yeah how are we supposed to do that question? I tried everything.. nothing seems to be working.. can't get the islm eqns..