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1.Use a well labelled diagram to explain the paradox of theft 2.Derive the multiplier effect with the government spending. 3.Suppose that C=200+0.75(Y-T) I=200-25r G=100 T=1000

1.Use a well labelled diagram to explain the paradox of theft

2.Derive the multiplier effect with the government spending.

3.Suppose that

C=200+0.75(Y-T)

I=200-25r

G=100

T=1000

Ms=1000

p=2

(M/p)d=Y-100r

Compute the equilibrium income

4.What are the determinant of investment

5.Explain the theories of consumption

6.Why do consumption relations are irreversible over time

7.Explain why Per capita income is not a good measure of material well being

8.Why is there difficulties in measuring national income

9.What are the concerns of macro economics

10.What are the advantages of macro-economics

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