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# Solution: ECO401: Assignment No 02 Due Date: 21/01/13

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bhai ap c) part mein T kaise laee T toh PART B) k question mein diya hai

dia to huwa hai

part B mein diya hai

saving level if taxes are....350

ok bhai sorry.....
jo formula maine diya wo konsa tha i mean kis cheiz ka tha ye wala Y=C+I+G

Is main NX nahi hai... NX stand for Net Export (Export - Import)

If Export > Import = Trade Surplus

If Export < Import = Trade Deficit

part c mein sign ki mistake hai -4930 k baad + 350 nhi aeega -350 aega na

Yes.... Par answer thek hi aya ga.. just sign galt daal dia hai.. Good

Welcm

thank you so much

Main na handout nahi parha.... Robert Frank & BenBarnaka ki book parta hun. Basic equation hai jo main na solution main likhi hai... baki ap us ko simpl kr lo... See the following detail with reference....

### The Injections-Leakages Balance

A balance between injections and leakages generates the same equilibrium as a balance between aggregate expenditures and aggregate production. A little manipulation of the Y = AE equilibrium condition illustrates why.

• Aggregate expenditures (AE) are the sum of consumption (C), investment (I), government purchases (G), and net exports (X - M).

AE = C + I + G + (X - M)

• The income generated by aggregate production (Y) is used by the household sector for consumption (C), saving (S), and taxes (T).

Y = C + S + T

• Substituting each of these equations into the Y = AE equilibrium condition gives us:

C + S + T = C + I + G + (X - M)

• Because consumption (C) is on both sides, it cancels out.

S + T = I + G + (X - M)

• For reasons that will be apparent later, let's move imports (M) to the left-hand side.

S + T + M = I + G + X

This last equation indicates that equilibrium can be achieved by equating injections I + G + X with leakages S + T + M. Most importantly, when aggregate expenditures equal aggregate production (Y = AE), then injections are necessarily equal to leakages S + T + M = I + G + X.

http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=inj...

Simpl krna ka simpl tareka  yeh hai k suppose C both side pa aa raha hai to wo cancel ho jaya ga

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