107 727
Assignments Done
100%
Successfully Done
In April 2024
In April 2024
Your physics assignments can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Physics
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Math
Our experts will gladly share their knowledge and help you with programming projects. Keep up with the world’s newest programming trends.
Programming
Answer to Question #60991 in Macroeconomics for Ahmed
Question #60991
2.Assume the following information represents the National Income Model of a hypothetical economy.
Y = C + I + G,C = a + b(Y – T),T = d + tY, I = I0,G = G0
Where a > 0; 0 < b < 1,d > 0; 0 < t < 1,T = Taxes, I = Investment ,G = Government Expenditure
Explain the economic interpretation of the parameters a,b,d and t.
Find the expression of equilibrium income, consumption and taxes
Y = C + I + G,C = a + b(Y – T),T = d + tY, I = I0,G = G0
Where a > 0; 0 < b < 1,d > 0; 0 < t < 1,T = Taxes, I = Investment ,G = Government Expenditure
Explain the economic interpretation of the parameters a,b,d and t.
Find the expression of equilibrium income, consumption and taxes
Expert's answer
a – autonomous consumption, which is independent on disposable income;
b – slope of the consumption function;
d – constant autonomous lump-sum tax;
t – rate/proportion of income tax.
An expression, which determines income, consumption and taxes at equilibrium:
Y̅ = 1/1-b x (a - bT + I + G)
b – slope of the consumption function;
d – constant autonomous lump-sum tax;
t – rate/proportion of income tax.
An expression, which determines income, consumption and taxes at equilibrium:
Y̅ = 1/1-b x (a - bT + I + G)
Learn more about our help with Assignments: Macroeconomics
"assignmentexpert.com" is professional group of people in Math subjects! They did assignments in very high level of mathematical modelling in the best quality. Thanks a lot
#339914 on Dec 2023
#339914 on Dec 2023
Comments
Dear visitor, please use panel for submitting new questions
The equations describing desired consumption (C^d) and desired Investment (I^d) are given as follows: C=C0+C1(Y-T)-C2r I= t0 +tY I =I0 -I1r. Where Y= disposable Income C0, C1, C2 I0 and I1 are positive numbers Hint: Y=C^d +I^d +G is provide an expression for the Iscane using appropriate illustrations, explain the relationship between taxes and the desired Capital Stock
Dear visitor, please use panel for submitting new questions
in a certain economy marginal propensity to save is 0.2 and the autonomous consumption is 400 a)formulate consumption function b)if the government expenditure is to increase were to increase by 50% what would be the resultant change in national income
Leave a comment