Re: jnu 2017 answers sss, let's discuss

Posted by soimmoi on Dec 16, 2017; 9:22am
URL: http://discussion-forum.276.s1.nabble.com/jnu-2017-answers-sss-let-s-discuss-tp7608176p7608501.html

Rayee to my knowledge both for fiscal and budget deficit we have same formula, I referred to class 12th macro text book. let me know if you have a reason for the answer to be other than b.
Also, i would have uploaded but I've a hardcopy of the paper.
ques is In a closed economy C= 1000 +0.8 (Y-T) where Y denoted income . The income tax rate is unifomly 25% of all income. If investment in this economy raises by 500 and government expenditure by 100 starting from intial situation
a) how much does income increase by
b) "       "      "   consumption "   by
c) how much does tax revenue, fiscal deficit and private savings increase by .
i've written down the whole ques.