(c). Given the national-income model: Y = C + lo + Go C = a + B (Y - T) (a > 0,0 < B < 1) T= y + 6Y (y > 0,0 < 6 < 1) a- By+ 1,+G, 1-B+B6 Y = dy ay ay da ' aB' ay' dy and Interpret their economic meaning and Find partial derivative al, determine their signs.

(c). Given the national-income model: Y = C + lo + Go C = a + B (Y - T) (a > 0,0 < B < 1) T= y + 6Y (y > 0,0 < 6 < 1) a- By+ 1,+G, 1-B+B6 Y = dy ay ay da ' aB' ay' dy and Interpret their economic meaning and Find partial derivative al, determine their signs.

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter12: Fiscal Policy, Incentives, And Secondary Effects

Section: Chapter Questions

Problem 14CQ

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Question

Part C

(b). Given the production function Q = 96K°L07, find the MPPK, and MPPL functions. Is
%3!
MPPK a function of K alone, or of both K and L? What about MPPL?
(c). Given the national-income model:
Y = C + lo + Go
C = a + B (Y - T)
(a > 0,0 < B < 1)
T= y + 8Y
(y > 0,0 < 6 < 1)
a- By+ 1,+G,
1-B+B6
Y =
ду ду ду
ay
and
Find partial derivative
Interpret their economic meaning and
da ' ap' ay'
да
ie
their
determine
signs.

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