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-10(a)
Q. -Ch.-10(b)
Q. -Ch.-11(a)
Q.-Ch.-5
The nominal money supply in the economy is 800. Determine the equation of the aggregate demand
when tax rate is 30%.
If the tax rate is increased to 35% and government expenditure is simultaneously increased to
2000, what will be the change in the slope of such aggregate demand curve? Explain the result.
(i) (i)
solve the simultaneous equation system to get : solve the simultaneous equation
(ii) (iii)
I = - (80/3)*30) + (80/3)*20) ]
I = - (80/3)*(30-20)
I = - (800/3)
ve : 2Y = 3200 + 80i
= 5200 - 80i
00 and i = 30
I = - (80/3)*45 + (80/3)*30
I = - (80/3)*(45-30)
I = - (80/3)*15
I = - 400
(i)
Y=C+I+G
i = (1/60)*[(1/5)*{(14500*64)/274}-500]
Y = 3386.8613
i = 2.9562
(ii)
Y=C+I+G
solve for G
G = 1205.7482
(M / P) = (1/5)*5000 - 60*2.9562
(M / P) = 822.6277
G = 1205.7482 - 500
(M/P) = 822.6277-500
G = 705.7482
(M/P) = 322.6277
(i)
Y= 14375 G= 6605
X - Q = -2575
X= 625
0 - 0.2*16000) ] + [ 400 ] + [ G ] + [-2575 ]
Q = 3200
(i)
Y = C + I + G + (X-M)
Y = 1753.6232
i = 1.2681
and then
(X - Q) = 200 - ( 5 + 0.2*1753.6232 )
(X - Q) = -155.7246
(ii)
Y = C + I + G + (X-M)
Y = 1898.5507
i = 1.9928
I = 380.0725
I = 10*(1.2681) - 10*(1.9928)
I = -7.2464
[ 600 ] + [ 200 - ( 5 + 0.2*Y ) ]
c 0.75 c 0.75
t 0.30 t 0.35
1-t 0.70 1-t 0.65
G 2.1053 G 1.9512
k 0.30 k 0.30
b 55.00 b 55.00
h 75.00 h 75.00
1.4388 1.3652
1.0552 1.0011
A 2900 A 3400
M 800 M 800
-M -844.1247 -M -800.9101
A 4172.6619 A 4641.6382
4177.6252
845.129939
800.8008
4639.23924