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problem 1:

Illustrate out with the aid of a diagram, the effect on the consumer’s equilibrium, of a raise in the price of commodity X while consumer’s money income and price of commodity Y remains unchanged.

problem 2:

If the government intends to restore the consumer’s current welfare to its original level, illustrate out how the process of income compensation would proceed to realise that objective.

problem 3:

Define and illustrate out, using diagrams, consumers’ surplus; producers’ surplus and total surplus that a society can derive from consumption and production of the good at a specific price.

problem 4:

Illustrate out why these surpluses are maximised at the equilibrium price and output only in a purely competitive market.

problem 5:

Illustrate out inflation and discuss its origin using Keynesian and Classical theories.

problem 6:

Illustrate out with diagram how can inflation occur in the economy with substantial unemployment of factors of production.

problem 7:

Comment on the effects of inflation in economy and the measures to control inflation.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M99142

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