From the following data calculate Fiscal Deficit
| S. No. | Item | Rs. In billions |
| 1 | Capital Receipt | 68 |
| 2 | Revenue Expenditure | 160 |
| 3 | Interest Payment | 20 |
| 4 | Borrowings | 32 |
| 5 | Tax Revenue | 50 |
| 6 | Non- Tax revenue | 10 |
Q. Estimate the value of ex-ante AD, when autonomous Investment and consumption
expenditure (A) is Rs. 50 crores, and MPS is 0.2 and level of income is Rs. 300 crores.
Q. Discuss the significance or 45 degree line in Keynesian Economics.
Q. Elaborate 'economic growth' as objective of government budget.
Q. Use following information of an imaginary country:
| Year | 2014-15 | 2015-16 | 2016-17 |
| Nominal GDP | 6.5 | 8.4 | 9 |
| GDP deflator | 100 | 140 | 125 |
(i) For which year is real GDP and nominal GDP same and why?
(ii) Calculate Real GDP for the given years. Is there any year for which Real GDP falls?
Q. How Will 'Reverse Repo Rate' and 'Open Market Operations' conlwl excess money
supply in an economy?
Q. Illustrate with the help of a hypothetical numerical example the process of credit creation.
a) Define Externality.
b) Find National Income from following using expenditure method
| S.No | Rs (in crores) | |
| 1 | Current transfers from rest of the world | 50 |
| 2 | Net Indirect laxes | 100 |
| 3 | Net Exports | -25 |
| 4 | Rent | 90 |
| 5 | Private Final Consumption Expenditure | 900 |
| 6 | Net Domestic Capital Formation | 200 |
| 7 | Compensation of Employees | 500 |
| 8 | Net Factor Income From Abroad | -10 |
| 9 | Government Final Consmption Expenditure | 400 |
| 10 | Profit | 220 |
| 11 | Mixed Income of Self Employed | 400 |
| 12 | Interest | 230 |
