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Assume that the economy is characterized by the following structural equations:
C = 160 + 0.6 (4 - T)
I = 150; G = 150; T = 100.
a) Determine the equilibrium output level.18
b) If G increases to 200, what is the how equilibrium level of output? What is the value of the govt. expenditure multiplier?
c) If tax down to 50, by how much will equilibrium output increase? What is the value of tax multiplier?
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Do neoclassical economists view prices and wages as stickly or flexible
nature, development and function of money.
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Examine the pros and cons of commercial transactions in blood from the egoistic, the utilitarian, and the Kantian perspectives
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TRADE IN SERVICES: India had objected to the inclusion of trade in services in the agreement for the UR negotiations. The Indian negotiations continued to raise object
Is it true that government revenues are increased because of lower tax rates? Ans) It is true to a point. The Laffer curve determines that revenues enhance as the tax rates rise
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