Assume that the economy is now governed by a government and begins trading with other economies. The economy is described by the following set of equations. ?=1000+0.5⋅?d ID = 600 G=700 T=400 EX=0.1⋅Y IM=100+0.1⋅Y YD = Y - T Calculate the equilibrium level of output Y* a) 2857 b) 4000 c) 6274 d) 4400 Whats the government expenditure multiplier? Whats the tax multiplier? Whats the ba;anced budget multiplier?
Assume that the economy is now governed by a government and begins trading with other economies. The economy is described by the following set of equations. ?=1000+0.5⋅?d ID = 600 G=700 T=400 EX=0.1⋅Y IM=100+0.1⋅Y YD = Y - T Calculate the equilibrium level of output Y* a) 2857 b) 4000 c) 6274 d) 4400 Whats the government expenditure multiplier? Whats the tax multiplier? Whats the ba;anced budget multiplier?
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy
Problem 1TY
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Assume that the economy is now governed by a government and begins trading with other economies. The economy is described by the following set of equations.
- ?=1000+0.5⋅?d
- ID = 600
- G=700
- T=400
- EX=0.1⋅Y
- IM=100+0.1⋅Y
- YD = Y - T
Calculate the equilibrium level of output Y*
a) 2857
b) 4000
c) 6274
d) 4400
Whats the government expenditure multiplier?
Whats the tax multiplier?
Whats the ba;anced budget multiplier?
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