In Keynesian macroeconomic model of an economy, it is assumed that \( Y = E, E = C + I + G_0, C = 60 + 0.7Y_d, Y_d = Y - T \) where \( I_0 = \text{Rs…
BBA Business Mathematics - I · 2023 · Solved Question with Answer
In Keynesian macroeconomic model of an economy, it is assumed that \( Y = E, E = C + I + G_0, C = 60 + 0.7Y_d, Y_d = Y - T \) where \( I_0 = \text{Rs } 90\text{m}, G_0 = \text{Rs } 140\text{m} \) tax revenue \( (T) = 0.4Y, t = 0.4 \). Determine the value of
(i) equilibrium level of national income
(ii) equilibrium level of consumption
(iii) the tax revenue.