Answer to Question #59598 in Macroeconomics for ali

Question #59598

The Grand Multiplier:
c = 0.6
t = 0.2
m = 0.1
AEo = 20,000.
Determine Y...

Expert's answer

c = 0.6
t = 0.2
m = 0.1
AEo = 20,000.
AE = C = c*Y = AEo + c*(Y - T) = AEo + c*(1 - t)*Y,
0.6Y = 20,000 + 0.6*(1 - 0.2)*Y,
0.12Y = 20,000,
Y = 20,000/0.12 = 166,666.67.

Learn more about our help with Assignments: Macroeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. Unemployment Problem. Data in millions. Total pop. = 350. Military = 1. Under 16 = 7
2. National Income Accounts. IBT1 = 80. IBT2 = 60. SST = 420. Dep. = 150. CRE = 90.
3. National Income Accounts. GNP = 8,800. T = 2,000. C = 5,000. G = 2,200. X = 500.
4. National Income Accounts. GNP = 8,800. T = 2,000. C = 5,000. G = 2,200. X = 500.
5. National Income Accounts. GNP = 8,800. T = 2,000. C = 5,000. G = 2,200. X = 500.
6. National Income Accounts. C = 800. NPI = 70. Profits = 300. Dep. = 100. Rents = 200
7. Gini Coefficient. B = 0.28 Determine the Gini Coefficient.

Who Can Help Me with My Assignment

There are three certainties in this world: Death, Taxes and Homework Assignments. No matter where you study, and no matter…
How to Finish Assignments When You Can’t

Crunch time is coming, deadlines need to be met, essays need to be submitted, and tests should be studied for.…
How to Effectively Study for a Math Test

Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…