isi

Posted by ritu on May 05, 2012; 11:40am
URL: http://discussion-forum.276.s1.nabble.com/isi-tp7530027.html

1.consider a simple keynsian model for a closed economy without govt.suppose saving is proportional to income(Y),marginal propensity to invest wrt income is 0.3 and system initially is in equillibrium......now following a parallel downward shift of saving function eqm level of saving is found to increase by 12 units.compute change in eqm income.


2.roses once in full bloom have to be picked up and sold on the same day.on any day the market demand function for roses is given by---
P=a-Q
it is also given that cost of growing roses,having been incurred by any owner of a rose garden long ago,is not a choice variable for him now...(does it mean all is fixed cost now??)
a.suppose there is only one seller in market nd he finds 1000 roses in full bloom on a day.how many roses should he sell on that day and at what price?
b.suppose there are 10 sellers in mkt & each finds in his garden 100 roses in full bloom ready for sale on a day..what will be the equilibrium price and the number of roses sold (given that a>1100 for this part)
now suppose mkt is served by a large number of price taking sellers.however the total availability on a day remains unchanged at 1000 roses..find the competitive price nd total roses sold that day?????



3.a simple keynsian model has two groups of income earners.the income of group 1 (Y1) is fixed at 800.both groups have proportional consumptn function.the average propensity to consume is 0.8 for group 1 and 0.5 for group 2...group 2 consumes only domestically produced goods while group 1  consumes domestically produced as well as imported goods ,their marginal propensity to import being 0.4..investmt goods are produced domestically and invstmt is fixed given at 600.
a.compute GDP(Y)
b.suppose group 2 makes an income transfer of rs 100 to group1 but imports are restricted and cannot exceed 250..how does Y change???
c.what if import ceiling is 400??