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Write a short note on full employment budget surplus
. if investment is very interest enclantic , moot of an income tax wake cut will be created out, therefore, the central bank should always supplements a tax cut with an increase is money gupply comment on this patement with the help of an is-lm diagram and explain the adjustment wold your answer change in the propere. porice. danfarce allowed to change explain.
Q4.From the given data, calculate i) GDP at
market price ii) GDP at factor cost and GNP
Household Consumption ExpenditureRs 550 billion
Government ConsumptionExpenditureRs 250 billion
Gross fixedcapital formationRs 100 billion
DepreciationRs 150 billion
Indirect TaxesRs 160 billion
SubsidiesRs 40 billion
ExportsRs 200 billion
ImportsRs 250 billion
Net incomefrom abroadRs 159 billion
Ans
GDP at market price= 850 billion
GDP at factor cost= 730 billion
GNP at factor cost=880 billion
GNP at market price=1000 billion
Calculate NDP at MP, NDP at FC and NNP at
FC
GrossDomestic Product atRs Crores
Market Prices20000
Indirect Taxes2000
Subsidies500
Exports2000
Imports2500
Capital Consumption1000
Ans:
NDP at MP= 19800 Crores
NDP at FC= 17500 Crores
NNP at FC= 17000 Crores
Q2.Calculate Net Domestic Income, Gross Domestic
Income. Net national Income
ItemsRs Crores
Compensation of employees24000
Operating Surplus10000
Mixed Income of Self-employees28000
Net factor income earned from abroad-3000
Depreciation1700
Indirect Taxes9000
Subsidy1800
Ans:
Net domestic Income= 62000 Crores
Gross Domestic Income= 63700 Crores
Net National Income= 61700 Crores
Q1.Calculate Domestic income and National Income from the
following data using Income Method
ItemsRs Crores
Wages10000
Rent and Loyalty5000
Interest400
Profits and dividends3000
MixedIncome4000
Social Security Contribution400
Corporate Gain Tax400
UndistributedProfits200
Net Income earned from abroad1000
Ans:
Domestic income= 19800 Crores
National Income= 20800 Crores
1. The government decides to reduce the interest rates in a bid to boost economic growth through investment. Analysts have argued against this policy citing inflation.
a) What other factors could also culminate in this kind of inflation?
1. In Zambia, many firms import their raw materials that they use in their production processes. Over the months, the exchange rate has been depreciating thereby making these imported raw materials more expensive. In light of this, many economists have advocated for a switch from imported to local raw materials to avoid inflation.
a) What type of inflation is associated with the scenario? (Justify your reasoning)
b) List and explain the 3 other main factors that may cause the inflation above.
c) List and explain three effects of inflation.
Review the last year’s COVID19 supplementary budget of Fiji (available online) and discuss if the initiatives are adequate to mitigate the pandemic. Discuss the drawbacks, and explain how they may be improved.
Helpful Links:
https://devpolicy.org/fijis-next-budget-should-focus-on-crisis-mitigation-and-economic-recovery-20210526/
https://devpolicy.org/how-to-respond-to-fijis-covid-19-health-crisis-20210511-2/
https://www.brookings.edu/research/how-to-boost-long-run-growth-after-covid-19/
