HARD
12TH CBSE
IMPORTANT
Earn 100

'The fiscal deficit gives the borrowing requirement of the government'. Elucidate.
Important Questions on Government Budget and the Economy
MEDIUM
12TH CBSE
IMPORTANT

HARD
12TH CBSE
IMPORTANT

HARD
12TH CBSE
IMPORTANT
Consider an economy described by the following functions: C = , I = , G =, TR =
(a) Find the equilibrium level of income and the autonomous expenditure multiplier in the model.
(b) If government expenditure increases by , what is the impact on equilibrium income?
(c) If a lump-sum tax of is added to pay for the increase in government purchases, how will equilibrium income change?

HARD
12TH CBSE
IMPORTANT

HARD
12TH CBSE
IMPORTANT

HARD
12TH CBSE
IMPORTANT

HARD
12TH CBSE
IMPORTANT

HARD
12TH CBSE
IMPORTANT
