Econ question
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Why the value of MPC is not greater than 1? Answer: This is because change in consumption can never be more than change in income.
Illustrate which budget expenses does not result in the creation of assets or reduction of liability. Give illustrations too.
Quetion: Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading. Include in your answer why solutions to the problem
What occurs to economy, when credit availability is limited and credit is made costlier? Answer: Aggregate demands falls
How can Equilibrium of a market be exist?
Describe the fiscal measures to accurate the condition of deficient demand and excess demand. Answer: Fiscal measures are the government’s budgetary policy th
Reallocation of resources: In case, the market economy fails or does not attain the desired social objectives, the government has to interfere via budget and reallocate resources accordingly. Through its budgetary
Explain the concept of “economies of scale” and “increasing returns”.
With the general equilibrium framework in place, the stage is now set for introducing fiscal and monetary changes and analysing their effects on the general equilibrium. We will first introduce a fiscal change in the form of increase in deficit-financed expenditure, a
Determine the value of total receipts of government budget when budget deficit is Rs 2,000 crores and the net expenses is Rs 3,000 crores.
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