eco403 assignment no 2 idea solution required

[Vuhelper]

IDEA SOLUTION:

hamaray pass yeh options hain ……….abb in pay formulas apply kertay hain……..pehlay national saving………phir private saving……phir investment……phir trade balance……..first requirment pay mein khud bhi confuse hoon……..

GDP= Y = 7000

Consumption = C = 1010+0.70(Y-T)

Govt. Expenditures = G = 1000

Taxes = T = 1000

Investment function = I = 1000-700r

Interest rate = r* = 3

Net Export = NX = 700-700e

……………..

daikhain 2nd requirement hai national savings ki or uss ka formulah hai

S = Y – C – G

abb iss ko find out karnay kay liaye humain C ko calculate kerna parray ga………..pehlay uss ko calculate kertay hain

C = 1010+0.70(Y-T)

= 1010+0.70(7000-1000)

= 1010+0.70(6000)

= 1010+4200

= 5210