1. Based on the following information: C = 40 +0.7Yd, T = Tg-R, I = 150, G = 250, Tg = 50, R = 35 a. calculate the equilibrium level of income (Ye). b. calculate the value of KG, KTg dan kr, where k is the multiplier. c. calculate the value of C, S dan T at Ye level. d. calculate the new equilibrium level of income if I increases by 10 percent. e. if G increases to 350 units and it is fully funded by the rise in T, what is the impact on Ye? f. if Tg increases to 65 units and R increases to 40 units, what is the effect on the level of Ye?

1. Based on the following information: C = 40 +0.7Yd, T = Tg-R, I = 150, G = 250, Tg = 50, R = 35 a. calculate the equilibrium level of income (Ye). b. calculate the value of KG, KTg dan kr, where k is the multiplier. c. calculate the value of C, S dan T at Ye level. d. calculate the new equilibrium level of income if I increases by 10 percent. e. if G increases to 350 units and it is fully funded by the rise in T, what is the impact on Ye? f. if Tg increases to 65 units and R increases to 40 units, what is the effect on the level of Ye?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 4TY

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