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1.Show how LM curve is derived graphically 2.The below factors describes a certain economy Consumption function C=400+0.75yd Investment function I=200+100r Tax function =70+0.2r Government expenditure

1.Show how LM curve is derived graphically

2.The below factors describes a certain economy

Consumption function C=400+0.75yd

Investment function I=200+100r

Tax function =70+0.2r

Government expenditure G=100

Import function M= 150+0.006Y

Money supply=4000

Money demand=0.2r-10r

Required to derive IS-LM equations

And calculate the equilibrium Y, C,T,M and I

3. What is Balance of trade made up of?

4.What are the factors that causes shifts in the balance of Trade curve

5.What does upward revaluation of domestic currency mean

6.Expalin the J-curve phenomenon

7.What are the effects of devaluation of currency in an economy

8.What are the method used to correct the trade deficit in an economy

9.How do restructuring of education system help to reduce unemployment

10.What does the term underemployment mean

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