Advertisements
Advertisements
प्रश्न
We suppose that C = 70 + 0.70Y D, I = 90, G = 100, T = 0.10Y (a) Find the equilibrium income. (b) What are tax revenues at equilibrium Income? Does the government have a balanced budget?
Advertisements
उत्तर
(a) C = 70 + 0.70 YD
I = 90
G = 100
T = 0.10Y
Y = C + I +G
Y = 70 + 0.70Y + 90 + 100
Y = 70 + 0.70YD + 190
Y = 70 + 0.70 (Y − T) + 190
Y = 70 + 0.70Y − 0.70 × 0.10 Y + 190
Y = 70 + 0.70Y − 0.07Y + 190
Y = 70 + 0.63Y + 190
Y = 260 + 0.63Y
Y − 0.634 = 260
0.37Y = 260
`Y = 260/0.37`
Y = 702.7
(b) T = 0.10Y
= 0.10 × 702.7
= 70.27
Government expenditure = 100
Tax revenue = 70.27
As, G > T, Government has a deficit budget, not a balanced budget.
APPEARS IN
संबंधित प्रश्न
Fiscal deficit equals :
(a) Interest payments
(b) Borrowings
(c) Interest payments less borrowing
(d) Borrowing less interest payments
Distinguish between revenue deficit and fiscal deficit.
Define revenue
Give the relationship between the revenue deficit and the fiscal deficit.
Suppose marginal propensity to consume is 0.75 and there is a 20 per cent proportional income tax. Find the change in equilibrium income for the following (a) Government purchases increase by 20 (b) Transfers decrease by 20.
Explain the relation between government deficit and government debt.
Fiscal deficit = ______.
| S. No. | Content | Rs (in crores) |
| 1. | Revenue Expenditure | 100 |
| 2. | Capital Receipts | 40 |
| 3. | Net Borrowings | 38 |
| 4. | Net Interest Payments | 27 |
| 5. | Tax Revenue | 50 |
| 6. | Non-tax Revenue | 15 |
Which of the following is MOST LIKELY to be the main contributor to the fiscal deficit in this case?
Which of the following factors necessitated the need for economic reforms?
Assertion (A): Fiscal deficit is measured in terms of borrowings.
Reason (R): External borrowings increases the Fiscal deficit.
A fiscal deficit is equal to borrowings. It is ______
______ in the budget is an important measure of deficit.
The difference between fiscal deficit and interest payment is known as ______
What is relation between government deficit and government debt?
How do we get the primary deficit from the fiscal deficit?
Which of the following points are related to the current alarm?
Identify which of the following statements is true.
A large amount of fiscal deficit proves to be counter productive. Give any two reasons in support of this statement.
