In a given economy, families save 10% of their salaries; the current annual taxation rate is 25%; arranged speculations are relied upon to be $ 60 billion; and the import / export imbalance is about $ 2.5 billion. Current government consumptions are $ 270 billion every year. The full limit GNP level is $ 1,060 billion. What is the current shortage? What is the full employment shortfall? Look at the two. Is the current financial plan expansionary or on the other hand contractionary? Clarify.

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A: The information Being given to us is as follows:- Revenue expenditure = $400 Million Revenue…

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A: Given MPS = 0.3 MPI (marginal propensity to import) = 0.1 Increase in expenditure = 10 billion

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A: T =  250 + 0.2YG = 500IM = 75 + 0.3YX = 600

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A: Step 1: Step 2: Step 3:

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