Re: JNU 2012 Answer Key

Posted by Amit Goyal on May 02, 2014; 2:46pm
URL: http://discussion-forum.276.s1.nabble.com/JNU-2012-Answer-Key-tp7580041p7588278.html

For 22,
C + S = C + G gives us S = G.

For 23,
Let N denotes non worker consumption. And W denotes wages.
Given that total value of output, Y = 200L and wages, W = 150L,
we get W = (3/4) Y and C = N + (3/4) Y
Hence, Y = N + (3/4) Y + G.
Thus, the multiplier is 4.

For 24,
We do the same thing as above except that C = N + 0.8(3/4) Y
Thus, the multiplier is 2.5.

For 25,
We do the same thing as above except that C = N + (3/4) (Y) - G.
Hence, Y = N + (3/4) Y - G + G.
Thus, the multiplier is 0.

For 26,
We again do the same thing as above except that C = N + 0.8((3/4) (Y) - G).
Hence, Y = N + 0.8((3/4) Y - G) + G i.e. Y = N + 0.6 Y + 0.2 G
Thus, the multiplier is 0.5