a) Calculate the national income equilibrium. b) Based on your answer in (a), show the aggregate expenditure graph. c) Explain what would happen to the national income equilibrium if the investment changes by RM100 million.
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a) Calculate the
b) Based on your answer in (a), show the aggregate expenditure graph.
c) Explain what would happen to the national income equilibrium if the investment changes by RM100 million.
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- Assume that a three sector economy in country W the amount of autonomous consumption is RM 300 million with the proportion of increase in income that is spent on consumption is 0.5 an induced tax of 20% is amount of government spending is RM 150 million Requirements Caluclate the national income equilibrium(a) Assume that Gross Domestic Product (GDP)/Total output (Y) is 6,000. Consumption (C) is given by the equation C = 600 + 0.6(Y – T) where T is the tax. Investment (I) is given by the equation I = 2,000 – 100r, where r is the real rate of interest, in percent. Taxes (T) are 500, and government spending (G) is also 500. What are the equilibrium values of C, I, and r?Suppose the consumption function is given by C(Y)=60+0.8(Y-T) where Y represents output and T stands for net taxes. Suppose further that the level of investment, I, is 400, the level of government expenditure, G, is 300, and net taxes, T, are 200. What is the equilibrium level of output in this economy? a. 1720 b. 3000 c. 1590 d. 720
- The economy is characterized as: C=100+0.8Yd G=T =50 I=50-25i MS=200 P=1 Md=Y-25i Tax T=50 1. Is tax a lumpsump, specific, ad valorem or proportional tax? 2. What is the equilibrium income? 3. What is the total investment?1. Suppose a closed economy hasnational income of $50 million,Investment of $2 million,Inflation rate of 5%, net tax rateof 15% and a budget surplus of$4 million. Find value of government purchases (G).Consider a closed economy. The profits of private corporations constitute a fraction ?of national income. These profits are subject to corporate tax and a fraction ? of the net profits is distributed to owners. The remaining profits are invested in theeconomy. To encourage investment, the government proposes to cut the corporation tax. The corporation tax is proportional and so is the regular tax but the rates are notnecessarily the same.Analyse the effects of the government proposal assuming that wages and pricesare flexible. Will there be any ambiguity about the results?
- ASSUME THAT A THREE SECTOR ECONOMY IN COUNTRY W. THE AMOUNT OF AUTONOMOUS CONSUMPTION IS RM 300 MILLION WITH PROPORTION OF AN INCREASE IN INCOME THAT IS SPENT ON CONSUMPTION IS 0.5. AN INDUCED TAX OF 20% IS IMPOSED BY THE COUNTRY. THE AMOUNT OF IS RM 250 MILLION AND THE AMOUNT OF GOVERNMENT SPENDING IS RM 150 MILLION. CALCULATE THE NATIONAL EQUILIBRIUM INCOME.Federal Income Tax Per Capita Using datafrom 2010 and projected to 2018, the federalincome tax per capita is given by the functiony = f(x) = 486.48x + 3486.84, where x is thenumber of years after 2010 and y is in dollars. If thismodel remains valid, in what year will the federalincome tax per capita be $8351.64?The aggregate consumption function is C = 800 + .8Yd. If income is $2,000 and net taxes are $500, consumption equals Group of answer choices 1,500. 2,000. 2,050. 2,150
- Assume that a three-sector economy in Country W. The amount of autonomous consumption is RM300 million with the proportion of an increase in income that is spent on consumption is 05. An induced tax of 20% is imposed by the country. The amount of investment is RM250 million, and the amount of government spending is RM150 million. A) calculate the national income equilibrium.Assuming society’s mpc is constant so an aggregate of income of $3000 aggregate consumption would beThe following set of equations describes the economy of a country A, in Africa C = 2000 + 0.75Id consumption equation I = 36000 investment G = 36000 Government Expenditure X = 2550 Exports M = 410 + 0.3Y Import equation T = 100 + 0.25Y Tax equation Compute the equilibrium National Income and imports for the country A Complete the tax multiplier and the Government spending multiplier Compute the equilibrium income and consumption