ZuoTi.Pro
Question

Using the 45 diagram solve for equilibrium Y if the following is true:         C =...

Using the 45 diagram solve for equilibrium Y if the following is true:         C = 800 + .8 Yd                     X = 200         M = 250                          G = 600         T = 400                           I = 350

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

At Equilibrium,

Y = C + I + G + X- M

Y = 800+0.8(Y-400) + 350+ 600 +200 -250

0.2Y = 1380

Y= 6900

Equilibrium income = 6900

0 0
Add a comment
Know the answer?
Add Answer to:
Using the 45 diagram solve for equilibrium Y if the following is true:         C =...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Imagine the economy is defined by the consumption function of C = 140 + 0.9 (Yd)...

    Imagine the economy is defined by the consumption function of C = 140 + 0.9 (Yd) where 140 is autonomous consumption, 0.9 is marginal propensity to consume, and Yd is disposable income (after taxes) and Yd=Y-T, where Y is national income (or GDP) and T=Tax Revenues=0.3Y (0.3 is the avg. income tax rate). To find the macro equilibrium use the following equation Y = C + I + G + (X - M). Where C=140 + 0.9(Yd), I=400, G=800, X=600,...

  • 2. Assume the following Keynesian model: C = 400 + .75Yd I = 200 G =...

    2. Assume the following Keynesian model: C = 400 + .75Yd I = 200 G = 100 X = 150 M = 50 + .15 Yd T = 100 a. Find the aggregate expenditure function b. Find the equilibrium level of GDP. c. Using a “Keynesian cross” (or 45-degree line) diagram, show graphically the equilibrium in part a). d. What is the spending multiplier in this model? Tax multiplier? e. Show that leakages are equal to injections at equilibrium. f....

  • We have the following model of the economy: (I)Y-C+S+T (2) E-C+I+G (3) Y E (4) C-(YD. CA (5) S-s(...

    1-5 We have the following model of the economy: (I)Y-C+S+T (2) E-C+I+G (3) Y E (4) C-(YD. CA (5) S-s(YD SA) (6) I=IA 7) G-GA (8) T TA (9) YD Y T (10) Deficit =G-T The following data for equilibrium values will help in this problem. G-800 I 30 T=650 Y'=5,000 Calculate 1. the equilibrium value of consumption 2. marginal propensity to consume (AC/AY) 3. the expenditure multiplier 4. The government budget now has an imbalance ofThis is a DEFICIT...

  • 4. Consider the IS-LM model: Y =C+I+G C = co + C(Y - T) - Car...

    4. Consider the IS-LM model: Y =C+I+G C = co + C(Y - T) - Car T = to +tįY I = io ti Y - ir M = m;Y + mo - mar, where the endogenous variables of the system are Y and r. The simultaneous solution of the first four equations defines the set of values of Y and r that establishes equilibrium in the goods market. While the fifth equation defines the values of Y and r...

  • Consider an economy in long run equilibrium described by the following equations: Y = C + I + G +...

    Consider an economy in long run equilibrium described by the following equations: Y = C + I + G + NX Y = 5000 G = 1000 T = 1000 C = 250 + 0.75*( Y - T ) I = 1000 - 50*r NCO = 500 - 50*r Where r is the real interest rate (in % terms). Suppose G rises to 1250 without any change in T. Solve again for the equilibrium real interest rate and the rest...

  • Consider the following Keynesian income model: E = C + I + G + X-M C...

    Consider the following Keynesian income model: E = C + I + G + X-M C = 300 + 0.85Yd Yd = Y – T T = 60 + 0.25Y; I = 400 G = 700 X = 400 M = 50 + 0.15Y In equilibrium, Y = E: a. calculate the equilibrium level of income. b. calculate the amount of taxes collected when the economy is at equilibrium level of income and show whether the government budget is in...

  • I don't know how to solve (e) 1. The AE diagram below shows the consumption function...

    I don't know how to solve (e) 1. The AE diagram below shows the consumption function of an economy, Each box is $20x$20 Distance between 45 degree line and consumtion curve is equal to saving, Distance between 45 degree line and AE curve is equal to unplanned inventory change. 45° (a) What are the MPC, MPS, and multiplier? **** (b) What are the savings when Y=200, 400, 600? 160+ 1001 100 400 (c) What are the consumption function and saving...

  • Suppose an economy is characterized by the following equations C-260+0.6 Yd Yd-Y-T I-250 G-250 T =...

    Suppose an economy is characterized by the following equations C-260+0.6 Yd Yd-Y-T I-250 G-250 T = 200 Is this econ Determine the following: omy closed or open? Explain 1) The equilibrium level of GDP (Y) 2) The total disposable income (%) of the household 3) Total consumption expenditure 4) Private savings of household, government savings and the national savings of the economy 5) Is private savings the same as aggregate investment? Explain

  • 1. In an economy which has a national income identity as the following; Y= C+ I + G + NX where C ...

    I need help with this. 1. In an economy which has a national income identity as the following; Y= C+ I + G + NX where C = 400 + 0.6 Yd,; 1 = 1000-4600 r, G-1240 T-200 +0.25 Y; NX-400-0.05Y-8 00 e ( ofcourse, Yd=Y-T) Where e- foreign currency/ domestic currency, and initially set at e 1.25+2.5R The money demand function is Md- 0.75 Y-7500 r, and money supply is set by the Central Bank at 450. All calculation...

  • An economy is described by the following equations: Y = C + I + G C...

    An economy is described by the following equations: Y = C + I + G C = 0.75 YD + 20 T = 0.2 Y + 4 G = 20 I = 25 Calculate equilibrium output and equilibrium private and public saving. With how much does equilibrium output falls, if government reduces government expenditure with 1 unit? Explain the event in b) for the multiplier diagram

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT