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question 1using appropriate diagrams describe the

**Question 1:**

Using appropriate diagrams, describe the optimal provision of a private good and a public good.

**Question 2:**

Using appropriate diagram, show how there is an efficiency cost of distortion when government imposes a tax on a product.

(a) Differentiate between absolute and relative poverty.

(b) Distinguish between contingent benefits, means test benefits, and workfare benefits.

**Question 3:**

Using appropriate diagram, show the effects of a balanced budget multiplier.

**Question 4:**

Describe the main motives for holding money.

**Question 5:**

Using the IS-LM model, show the effects of:

(a) an increase in government expenditure.

(b) an increase in money supply.

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## Q : what do you mean by polynomial and exponential

what do you mean by polynomial and exponential bounds bounds of the form nc for c greater than 0 such a bound are known as polynomial bounds