wrt oBuum

9T

Chna
iT

Andio
T
2o6
Yton

6000 Smgaho
7US

Copita

TS00

(ndi
25608
1965 2 ol o
Yeauk
 ala, nwy had an
APM stll,its aQuo. uloo s
hh Insm Frcduatk Expondulins(Ima pueet usondd)
dulefer thtt wapk wAtHts4404 4DP

3/12/ 202o *430 Valu AcdJed

4DP- Tetal uale f all f kuab yood& souees plodued )Valus auldid
ha wdauno 9unaphia eqlsn duun4, Sae peuad uf tine
a W h e o t t Ata Retoil Sanduwch
(Faumeu) Whobrola CCope ouwnuu)
P
utak Flw (6uvelo) (Ritoulu) (BAkdw)
Lalou
naOne

Houhuu Fmm
4DP
Coruumnbthiem xpendlue Valul addd

Pusduuibk
P*20 -So P=loo
P-1S
VA 20-0 VA-30 vA-FSo
Ta VA-50
wmqk
P. 1So
GDP by vaus addad
=

Ie
PeuNSmal
Fatlouy 8amks Fin antuk owwamernt atml lo umile
Mauhd CE Mauhit (pnumtho
Indulonk ob unute
Tapto o uni to nle mauhit
 Nomunab Pual 4b
H ufas, Tuals Hoil Fnaneal, Aol Etato0tas Pnduun
outuy 1 gnodi t poundr
)DP by enhondliw (Y)= + (X-Ima

Comme nxtimuxm gavt. NaG Peudt+1 Ctri

Expovt
/oohanom pioduouo uoustve PHon
UNen -duall pedn Duualds uds

2 guodu Aulormekuly oewrui

Lamd
Paopeuly untay 2
Deune the tEmu V a Va, Vo+

na gpods , lmteumcdiali gpod, Lahdal aud, Inwenduy inetn Pati Po,t

V Imp Compon Va,ttl Y0,tt1

Pat t i i Pet+1
Exptlnie Wulati tdal ualu
Tsta puduiluon, GD P)
Tolal Valub

qev E esalue Yaytat Totul uluu a ym pousdt une Peusd t Pkue

I maskuray FTal Nomnals valus o anwm.ohules
Tetol ualug n t V a t Xtupt t Voyt X Tejt Nomunal, D PE
X-lm Extunalh wmamy
4DP TOal Yeadiicv Toul Expendulu-Total wm Total valu Totab uolu New
 uith o ED 4bP - Yt+1Yt 20
Namt+1 Ya tt att TVtt Fo,tt
Nomincl
4DP guouthy vali 4t 7tT* Nom +1 Nom.Yt loo
Nom Yt
5tlusro Cmarnp bae an Nommal GbP.
Psollen
t Nat oblme ok 4PP Mamwwrmn
Nom
Pat Volu Mkt(Pur, mhanUwm)
t+ Vajt+i Va,t Vi,tt+ ,t No t+i
fat+ layt Poyt+Pot)- Ilealw Houehodd, wonhs No OpITtid. hepum
Apwueulhual bkrk unfaud wh
>o
LOUDTh ralE Nomo 4DP =

a Mauhg Mugsund etonomy (Not sclal in maukhus)

Aal qDP 3 GDP DuaTi
coda t puro) Any venlo = Ba n l
4.Geum GDP Enumental Coi o Piuctu autiuly
lat yt 5.
Irwentou Iwekud (ua v
pitial wmtion)
Pa PGt
aytri Vot+i
4DP newme Stl liwing
t+
ra t+ rG, t+i wel-buumg
CAoU peuol t ak ba yray pudh2 Deudco munt
Vaxfa+ t t
Xx re,t
Huwmam beudlsp Indno CH DI)
Ecluyaten vauualdu
Nationalb
e Expeclonuy
&teurully
 h okitol GDP (bau yeoo t
t t+i
GDP2 ti lity
(uell-kumy)
(at) =
¢en (a,) + ( i-9) en (o)
Col doughlas Pa,pea t (t

Cwniant

4 4 4 ) etil
=
fen Caten) +
C1-p) enlop+1)
en= X UnXt+((K)6ap,
-

= eL+(1-9) enGtt
at +(1-?)(
ae
9on(-)+-9af+(4 6t

n (t+kx) = -
&t 1
fuh alb o
ic

Nau tt -

-0
Deunulp_ foualy, ya, ncl
Unumb laymmint Rdo N

3. Suaatah Pavety Gah nder

N

13/ol/20l nguolUy
MNi k Pouegtiy
l u w & Luurtywwue

Pouil Eipoliti,/ina
P
TL CPsut uns) Cypali
Cuwwuaine
I.Had aurt Aatio N
2. Pei ée
Iudlo
uwmmulali Ponulatiom
N 10
PL-loo
P S
PL PL Coe A
A+B

Tuwily yah.(P4) =2pL-. (LsP)

 o/202 Thtwy o Fimm

Inim Road
laprutatiuu Fim (Econyp
GDP Duealo
uitput (4 DP)
Mcg F n
uwde )
*)Lomg. Kura Trodlucluon funtion ( tUnby
aouth Thieies

Deulopiny Phyiral Laluu

Caybstols
Studluna Feutiuun o Develsprng Counluan Contas
i Cnaguubhit ywnny peeho Cabrtal (HorrayonauR)
GDP
High Fullly Rals Lawu Homayemsus

2ubaumal Studu Tewhnelagy

Aguuiluwet Aaumption
Al wie hou aON to all tu tethmlu. Fu sunalior
3. Auw@l te uuban gaisv
atiun to Stalb Nk i N L NY
4 Coupeaion t s a d - Lsw vdhs ealded goedk CoMs tanib
TH Ptwwint Mugunel luwnstoevev o actpk pou
5 IMdilenal Stuf Low
MP
 MPL
MPL = (1-K)zK'L =
(1-K)
L
Y 6 -Wt Lt 0
)Nolaluon Pe 1)
Ne put
Wage ro w
ratt =» Rnb hituui Adti Consliliu dylina
Atntal
Pu4t MantUiyauev
TT TR-T6
40uth, A CUun ting
wt Ttal ex. o
-Toal ecnunddaue
Totol valu
Ne
-

Populatiov
GDPp barta, t
dyQuauloble Nt
MP Y
T-Mano N
MPL W
tLt
NE
MP KY =
YE x = Yt K-)
Y -
NËNK
owctant oukued emhuwunalley

MP w) 1-x) =
ut Lt

CestaAt
(+ Rt PLAth Awourlung Rolatiend

Dvelepialb ourabuas Eduoalun Vaupkor

Hoolt elalid vrdpldou
Ponuiaio puth rili t vely Cou

t I+9y Zt+ t+ t
i-* Gucustb vatbe lakeus Pla cobita,
-K
y 1y t * * a Eltiuly btpmuk

PAm maiuK -

tachm sloby
3y(t?y)(tga(1+9) guouth
A a l l h t t Rau
( (
Revntal sati ot K

Lut ot in ludohd tounlun nekom ally maune iuu

2 K/Ne
Dwelspud aunbaua ud te scuk 8n buuloln teh
Balaneio quauwth Path & cUmkt Guuth - (ouuupt1o0m, niulurnk, bunl,St cluu , el

ett Rupdl b t At tendlow ( flat) qteulh, Madtlu

Peo capita talau temdu
uthut 2 (abrtal Cen t0 All guBU ab the sami sati )Hawod dema Modul bos

) Saleuy Maded CosTos

Hwncm (opilak, Mpdul Past 70s

Fot gMuuh alenunduin) uh -Haw

Fautau
PApAiLR
Conveugemew7-pagu&teh Counuwr
8 y |6mpskealid. a ulabudity an tioh
Hausd-D omaw Maole
Devedoping, u n l i
Tola Sawray Total Imertmimt

HQueholde: Yt 64 HSt
ge Eauiky to get t
Podtun. Y+6t + I t
Sidio

Ciuma dny allb3

Ntisnab: Yt 6ttT+ +9+N
Awri

Hauuholdn T+ Ce +S4 =t Gt t St + Te

Y (24 Kk4 (Z2L4) Ewmbiddd teet Tanex

t+S4 + Te
64 + It tGt-
Spovnchuny Houuhold + Govt. Savemye
S'amys
eCept t. Sanumg I S(etul,sauungi
 Totols Sawngk= otalb Inernent
)Muaiut H-D
seath npital AMUmulatuon
ht rale n >o
F (1-8) Ke + I+ -0 Papnlatuon g k
K4
Ne+ e (Itn)
debertaluevM N6
Hauuac-domal o lohulal atttulaluow talion
(on&tant

Y LKt -) Np+ Ne Nt NE

149y) t n )
= (l~d) t
t Y
Y+,
(i-S)oY t7 (l-8)+ a 3
APPH y

. m Low pohulal gauth

Abnent )Puoblome
Hauud -Dornouy
DA,n MNed eudrnun
Mows US example -lau scng
omwd
MoL ntly gou
Hghu pudueh oprtal osto outhutmOL
1s tha guoth P+oeuttuem . Popoitival
 MP (api tab Awunaulatio

Bnctat Mavqurak oducl o caprtal .

=It
Ke4Ke}t S Kt
As Psaoluclnau e uam aprtab amauNA Sams
I
AK+ SK

uue at h samu ls
Solsuw Madi 1956) Steady StlL Outhut & opulal
atb = n = Fohulotkonm uath yals
uouitho
Y =Flk, L) I (A+)K
MPIK a kt
(n+8K

Z z /K_) S Y (nt&)K
L

u (nt)k S+eady
4DPpeu laluw: y =ZA
= Z
f (a) Stat
to
nedid

Hold z onstand
Fstht-partap
is dabecuas

thal

Invetmunt
Zk 4ra hubay ka (n+S) ek&

ss 2
 Solor uth toshntlage.ak puapu
al o sawwngs ti
terh. Lalisay ms pHduAue
) Laluoy -augmeina
Y=K (zL)
Asummg g >o (ordant) austh xat

Deeris E E alho

-0
= dnK)J
dt
o3/02/221
ozlant =o
Stady Stal 3,-
-

Ne t on s guoustho

Cohtal AwUmulalwn ladationshspu

Uncandlionak nuugpe
AL +& k+SK =

)3Y- t 8 -k-3)
 elare. kom2 muleaMce

Camg
)2Cownlnik wth s(mllau, pauomalu
K
&)Poblirw
-(n+9+5 -

huoen to maloh

Gai to malch

I&t eady Stitu

ntgt 8) 2 Wids vauniuon in dolo

3. Evidomm oonngONOL
4
Hummam laprtal Moll

Svlsw om explam paitinllyp

wwwelokmme shaky
Teeh p+0g4ul endaomauk

Tuw ohtab accumdahow ielalone

47 M+g +3s)
= 2 o<l241
ht ht
 lgpugal bemaned 2 hgpugale Suppla Fromauwk
vall
Stead stati. h guuuk a samt
) /-x

AS
Rt ,/he

K mestesr
he h S
ht
AD
On laun gndilierR hIs nultung l xam quelion)
uem uith dimumununp MP Lunlk
)Hs psnbdlL ts gubtu A0 shaus db wmuniliorne ol gumgeal Pies luuul 2 autu
due
Able Evdon the moray mauhl
dh uhuch &th Hho gnode mauhit amc

the ham
ASGmw eae tnes o pats) the guary oathub
1n am ewmsmy, is wllimg to Paduus

txamble I - A kieas stimuku G

AS

AD, AD2

Yt,P
 102/R02
Example 2 dL Pu
AD Eqpullbwumn ogoods 2 mamay mauhe
AS2
AS AS domcol V m
RugninAn Vekow

AD
P
Nes in
ouAUA gob ITJkiNAntrs
4ot. tXp.
Y,Pt p"Polbtia qbP"
The. lautnl madel AP
Fallb emh.lounnart,"
AS AD
KeKuuneta Mode
Yp

*HomAm AS Po- rent1om 2 Ruaulaliow

AS
P ProduNNk a gm4 te 0m

AS o tho gusaAn
GMmALTG +hob is dum amdid AS

mt. p .

Sub &tanlals Dnenmlaymtrit

Laboy mht ma m eoulluwm

AS-Santawi. LYp) pdued tou
ech tuxel,
Avg. o mauUme the Savns inahadluss aaulsnul
AsSUit1a
Lal mit.s (n ealllum-
Full emlaymim
PA I S - LM Fxameuuh Ruyntuom Fsamuusuk
AS

(ong yooolk Mkt

Dewwe
enjukiduum AD
Money Mkt

Goods Maykest loed

Shost wn
E LMOmy

Bau ldu0N ok IS-LM e xamliujoukh

Kuymadmo

PuUR, wag do. , dont adyuk 1mdleluy

Hold ar coMamt

1s n nulual
Mynty
)Uner lsymdn
is thuus

Demam du duuwn eC
*) Goade Mauht
=
Total domand " Tolal plomud nhmdle
Demamd + 4 Z 4
L
Iwtmun evgment
Conuumpto
Demom d Demomd Demamd
 G (onmptim umouow
T T (onsetavii
G G (Yp
t y tr
duspaabde mame I I

YDY-Tawe+Tramzely Y-T+ +
Demamd z ot Gi (y-Tttr) + +
G - , T +6,tr tE +G+6Y

AulnsmbLA Spundung omnun

A +6Y
Y c-6e
Supply a equiliuum)
Y
A
Magunal Prcheiuti, -

te omwmb GUde mekt Demamd

Z A, t Y
Yp +
Sawnt
sete
S Yp- - Cet( 1-G.) yp
2S (l-41) =
MaAmolb p4hUMHti, to Sane

Cav 1
2 +T +4

Y-T+ r)
o+G
Examble AG>8 , 2 COM Z= + I+4

44
Yg A/)
-G1
tr= ty
T t.Y
6046,1)
o4t4
(61
Govt. Exp. 2 Dem md
Eqululunw
K Muttihdow
-61 tI +4
6ot+6,#(y- t,Y+ tr)
y
Examle AYI=loo
Peubn 1
LGot 6,t +I +4J +lEA AG(4-t)

58
A
A6 6, xiod =0.SXi0o uhy
At61-+) y
AY2 So Peuon Az
AG20.5XSo 2 5
X, 6, (1-t)
- Toum 3
Az
A325
-
o.5 (e.s) ( leo) z A z t 6-t)Y
A30.Sx25 Case 1-

&Aead advod
til unil
Aulgmalib Stabulua
AY A4+ 6,4G j A4*
AG+ &1+ 6f+
AY L
A AG
7/22031 Y- A- bu) sutbly Z A-bi
Gan 3 to-t)»
6ot 6 Yp
T tY

tx ty
I ICi) =

Comstant 0
(Tual
Gabhurally 22A-t2

I-T ikio Aulouwmsuk ImeTimen

2A-bi
b Semululy Pao Pauomatuy +o-EY

=b

ZGe+-+.y4 Er) +4 +I -bi

orc.tT +7++, (1-t)y -b
As
=A +6, C1-t)y- bi = Y

x £A-bLJ
A-b
I-,C1-t) -GCIt)

IS
 Ncte Bodyal dunplun
1 Euy Pamt on IS uw sLgmku am epudlulm
BS =Tax 4tr
&. whmm h t ral aAok dauuwn Inuodmev is p0uldp i mh0lad
tY-4-tr Ovn Cat

Balaneud, Budget Multihli

3,Chome im A Shute IS.
Conmuilam blw BC amd Fisal polup
ExA4>o
AAO 83e 0h4

AA 2 A
*)y=x [A-bL
Con Stamb

r) MavwhstPauo Monuy Mawht kou Lugudly

oney Luauddly
No uwme
Govt. Eondlu

nteust At >(at hkdinq l9juudh møry,

IS2

2 tahun. inte wnudu lon

LELY) hy - RL
 h0Anulikuulyo pakameluu Aelatiovy bfw 2Y pusm LM mauhe

LM L[hY-ms
Sumly Ms Nomunal Morly &unhly

Centrak MS ab mony auhhlu

Kame

At eguhduum demamd duyly

hY- = MS

hY- 4rapheoluy

MS
-2

LM
Aab
Balae

LYau pcalualp Rialld

Hw aualitoluuly unduwtands why
hY Aeo
Balames mayd
LEuhUn i=o 1, Ew poUni
m M 2heuOHeril equlbuUM 1n monay

, Moru, óupaly ohangs shut LM

 )IS-LM Frame0uhI
Ex Ms MS
AM O
Eaalubaunmw LM
Maukut o4 Monty bothgod
MBUy malh

IS

Ms M2 I S Y«A -bl]
P Balarto
M : hY-M
LM
LM Solve

1 + h ))=
*A
+bx
xAA+«bMS
P LAY-E
ht d bh

= A Kb MS

whuu& A
R+ bh
AJou, P is no tongby a DYM Stami Fiscolb Montouy Polay Imbate
y 8A+8b MS AD-Hlationehps Hawto amolyas
P
Iduithy tho
vaualle thot is shamging
Steh L
P
wuthy it is in guode
Dermdamg ou th, dud
mht. mtt
auy momy
Hir
mkt. 2 dolimims th 1mbac
Step2: Tab +hat cou

shamb
AD
LoOAMUm 18-LM kuomitsouk.
in
G1ahenll Step3 Tah tu haumry 2 ohfly
MefaE
onY2u.
P P tmpact
Ma
Analye + h ttab
easmng,BAD-AS
unuuouk
7Tahe this
Step :
Y LP
mpant ovm

MS
Balameg
Y &