Ayushi Asked a Question
July 21, 2020 12:24 ampts 30 pts
The combination of a successful wage push by warkers and the government's commitment to high employment leads to (2 Demand Pull Inlation (2) Supply Side Inflation (4) Cost-Push Inflation 3) Supply Shock Inflation (2) T T 1) (1) (3) gf 3TTET f 48. Suppose that the MPC = 0.B, tax revenues equal 25% of income and imports do not depend on income. How much would equilibrium output increase due to a 5 crore increase in govermment spending according to multiplier model ? (1)7.5 crore 25 crore (2) 12.5 crorec (3) (4 None of the above
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  • Nidhi taparia thankyou
    47. The correct answer is (4). These events will lead to cost push inflation. If workers push for high wages, their demand by the firms may fall; because demand curve of labour is ...
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  • Nidhi taparia thankyou
    48. The correct answer is (2) 12.5 crore. This is the case of finding government expenditure multiplier in case of proportionate tax. Please refer to the following attachment for t...
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    • cropped7381760540657346259.jpg
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  • Nidhi taparia
    I have used the most common symbols for variables, above. In case they are not clear, let me know which one. I'll explain accordingly.
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