I have a doubt at 17:00. When tax rate is reduced and as you are saying due to tax rate reduction real wage rate will increase. I think When this happens, real wage rate increases, supply of labour will increase but on the same labour supply curve.
At 21:43 , I have a doubt , how increase or decrease in Money Supply shift AD rightward or leftward? Also, with reference previous unit , increase / decrease in money supply will change the interest rate right? Thanks for your efforts on these videos.
1. You will understand why increase in money supply shifts AD in rightward direction in the forthcoming videos 2. Yes, in the money market, change in money supply can change the interest rate
Ma'am can we say that if government is reducing tax amount and compensating by selling bonds then again it' will create a situation of crowding out? So government reducing lumpsum tax creates crowding out?
Yes, any action of government that leads to higher interest rates in the economy will create a crowding out effect because of decreasing private investment
I have a doubt at 17:00. When tax rate is reduced and as you are saying due to tax rate reduction real wage rate will increase. I think When this happens, real wage rate increases, supply of labour will increase but on the same labour supply curve.
Mam are you covering each and everything in detail or will there be any need to go through the prescribed readings for other concepts
Ma'am can you tell briefly that what is lump sum tax
Great analysis
At 21:43 , I have a doubt , how increase or decrease in Money Supply shift AD rightward or leftward? Also, with reference previous unit , increase / decrease in money supply will change the interest rate right? Thanks for your efforts on these videos.
1. You will understand why increase in money supply shifts AD in rightward direction in the forthcoming videos
2. Yes, in the money market, change in money supply can change the interest rate
Ma'am can we say that if government is reducing tax amount and compensating by selling bonds then again it' will create a situation of crowding out?
So government reducing lumpsum tax creates crowding out?
Yes, any action of government that leads to higher interest rates in the economy will create a crowding out effect because of decreasing private investment
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Mam u r great
Thank you Shubham!
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