(a)Suppose during 2020due to relief in Taxation Marginal Propensity to Consume (MPC) will increase from 0.65 to 0.75then calculate Tax multiplier (KT). (b)By using the Tax multiplier value calculated in

(a)Suppose during 2020due to relief in Taxation Marginal Propensity to Consume (MPC) will increase from 0.65 to 0.75then calculate Tax multiplier (KT). (b)By using the Tax multiplier value calculated in part (a), find the change in national income if Tax amount is increased from 4500billion rupees to 5100billion rupees. (c)How Subsidies and Ehsas program amount will affect the Aggregate Demand (AD)?

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(a)Suppose during 2020due to relief in Taxation Marginal Propensity to Consume (MPC) will increase from 0.65 to 0.75then calculate Tax multiplier (KT). (b)By using the Tax multi…

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