Re: JNU MA Economics Past Year Paper- 2012

Posted by MI on May 01, 2013; 2:07pm
URL: http://discussion-forum.276.s1.nabble.com/JNU-MA-Economics-Past-Year-Paper-2012-tp7580215p7580284.html


E = c(3Y/4 - T) +C* +G

c= 1 as per question

in equilibrium,

Y/4 = - T + G +C*

Delta Y /4 = - Delta T + Delta G

As per balanced budget condition  Delta T = Delta G

Delta Y = 0