68 399
Assignments Done
98,5%
Successfully Done
In December 2018

Answer to Question #12636 in Macroeconomics for Elaina

Question #12636
The current position of the economy is given by the following variables:
Ca = 200 (autonomous consumption)
G = 400
T = 400
I = 300
X= 200
M = 300
MPC = 0.80
We Know that Y (income) = Aggregate expenditures (C+I+G+X-M)
1) Find the equilibrium level of GDP (Y*). (4 points)
2) What is the equilibrium amount of saving (S)? (2 points)
3) Write the saving function. (2 points)
4) Show that injections equal leakages. (2 points)
Now suppose that the full employment GDP = 2000
5) The autonomous spending multiplier is equal to what? (1 point)
6) What is the necessary change in government spending alone that is needed to get the
economy to full employment? (2 points)
7) The autonomous tax multiplier is equal to what? (1 point)
8) What is the necessary change in taxes alone that is needed to get the economy to full
employment? (3 points)
9) The balanced budget multiplier is equal to what? (1 point)
10) What is the necessary change in government spending and taxes that is needed to get
the economy to full employment and ke
Expert's answer

Unfortunately, your question requires a lot of work and cannot be done for free.
Submit it with all requirements as an assignment to our control panel and we'll assist you.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions