Homework Answers
6.Equilibrium output is less than full employment output by 1000.
MPC= 0.8
Multiplier = (1/1-MPC) = 1/1-0.8 = 1/0.2 = 5
To close the recessionary gap , the autonomous spending is needed to increase by (1000/5)=200 , so that economy will reach to the full employment.
Tax multiplier = MPC/1-MPC = 0.8/1-0.8 = 0.8/0.2= 4
To close the recessionary gap, the government would cut the tax by (1000/4)=250 to bring the economy to full employment.
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Could you please help me with 1a-c. Pictures below. It would be greatly appreciated. Thankyou so...
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1.a)
b)
c)
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B,c,d,e please solve
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Question 13 (5 points) Suppose a closed economy has an aggregate consumption function given by C-200 +0.8Y, and generates $2.400 output and income in equilibrium. Suppose also that the government spends $350 and imposes a lump-sum tax of $300. How much will the private sector be saving total in equilibrium (S.)? Is the government running a deficit or surplus? By how much? (Circle 'surplus' or 'deficit' and enter the size (in dollars)) Is the private sector in deficit or surplus?...
Could you please help me with 1a-c. Pictures below. It would
be greatly appreciated. Thankyou so much.
1.a)
b)
c)
Use the information below for a four sector economy, answer the following questions: - 300 +0.75 Yd = = DELUXE 150 400 = Disposable Income GDP Consumption Taxes Investment Exports Imports Full Employment GDP Equilibrium Income 150 2,691 = YT Part 1: What is the value of autonomous expenditures Number Part 2: What is the slope of the aggregate expenditure...
I’m lost on all of these can some one please explain them. (
practice test )
15) The "nalve" Keynesian model is unrealistic because it A) Assumes that AS is upward sloping when it is more probably horizontal. B) Assumes that the price level decreases as AD increases. C) Does not account for changes in output due to the multiplier. D) Does not take into account probable changes in the price level as the economy 均 approaches full employment. 16)...
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