1) By using Keynesian economic model, explain how the equilibrium level of national income is attained. State the required assumption that should be taken into account for the discussion. Build a model for your discussion.

2) If the government pumps in 30 millions as the government expenditure, what might have happened to the equilibrium level of national income. Enhance your answer with a simple calculation by using multiplier process

-- Ahmed Zameel (ahmedzameel@hotmail.com), May 29, 2002