1. Please express the model of natural rate of unemployment according to blanchards book and then give your comments 2. How can you explain the aggregate demand and aggregate supply curves. How they are different from the usual definition on demand and supply curves
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1. Given the government expenditure, whether the government budget is in surp lus or deficit dep ends on the tax revenue which itself depends on rate of tax. Please derive the tax rate at which the government budget is in balance. Draw the graph that reflects the relation between tax rate and deficit (or surplus)
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