Answer to Question #5710 in Macroeconomics for shafkat
The MPC in your economy is 0.70 with an autonomous consumption of Tk 80 billion. Your economy is a open economy with I, T, R, G and XN with an exogenous amount of 20, 50, 20, 60 and 5 billion Taka, respectively. Find out your equilibrium GDP with two, three and four sector economy. Do you think your GDP will increase for:
1.TK 10 billion extra transfer payment;
2.Tk 10 billion new government purchases ; and
3.Tk 5 billion increase in the net export
4.If all of the above are considered together ?