28. Balanced Budget Multiplier. Consider the Keynesian Cross model from lecture. What is the simple formula for the...
35. Death and Taxes. The basic Keynesian Cross model from 11-1 in the textbook assumes taxes are exogenous and independent of income, but that is not realistic so let's modify the model. i. Here are two options for modeling taxes as a function of income: a) T(Y) = 2 + 0.2Y or b) T(Y) = 2-0.2Y Which choice is more realistic? Briefly explain your choice to yourself. Suppose I = 6, C = 10 +0.5(Y-T) and G is unknown. Set...