Based on the following information: C = 40 + 0.7Yd, T = Tg – R, I = 200, G = 350, Tg = 60, R = 40 calculate the equilibrium level of income (Ye). calculate the value of kG, kTg and kR, where k is the multiplier.. calculate the values of C, S and T at Ye level. calculate the new equilibrium level of income if I increases by 10 percent. if G increases to 550 units and it is fully funded by the rise in T, what is the impact
Based on the following information:
C = 40 + 0.7Yd, T = Tg – R, I = 200, G = 350, Tg = 60, R = 40
- calculate the equilibrium level of income (Ye).
- calculate the value of kG, kTg and kR, where k is the multiplier..
- calculate the values of C, S and T at Ye level.
- calculate the new equilibrium level of income if I increases by 10 percent.
- if G increases to 550 units and it is fully funded by the rise in T, what is the impact
on Ye?
- if Tg increases to 85 units and R increases to 50 units, what is the effect on the
level of Ye?
Given the following information.
C = 600 + 0.8Yd , Yd = Y – T, Tg = 100, I= 200, R = 50, G = 350,
X = 250 and M = 200 + 0.1Y.
- Calculate the equilibrium level of income (Ye).
- Show the equilibrium level of income by using diagrams of both aggregate
expenditure-income (AE-Y) approach and injection-leakage approach,
- How much investment should be increased if the government wants to increase
the
- How much tax has to be reduced so that the national income will increase by
2000?
- Based on the answer in Question 2(a), if the government undertakes
expansionary fiscal policy by increasing government expenditure by 400, calculate
the new equilibrium level of income.
- After being at the equilibrium level of income in Question 2(e) above, if the
government reduces the tax by 400, what is the new equilibrium level of income?
- Starting with the original information above, if the government runs a balanced
budget i.e. increases the government expenditure and tax by the same amount
(ΔG = ΔT = 400 which Δ means changes), calculate the new equilibrium level of
income. Draw a diagram to show this situation.2
Given two IS equations as below.
Y = 2500 - 600r and
Y = 2500 - 1200r,
- Explain which curve is flatter.
- What is the factor that causes the slope of the IS curve to change?
Explain the relationship between the slope of the IS curve and the slope of the
investment curve.
Given the following information.
C = 100 + 0.75Yd , (dengan, Yd = Y − T)
I = 240 − 600r
G = 50
T = 30
- Derive the equation for IS curve.
- Calculate the equilibrium level of income if the interest rate is 8 percent.
- What is the impact on the equilibrium level of income if the government runs an
expansionary fiscal policy by adding G by 200 units?
- What is the impact on the IS curve if the government increases tax to 80 units?
- What are the factors other than the fiscal policy factors that can cause the IS
curve to shift?
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