If the consumption function is C-800+0.6(Y-T), output, Y.= $2,100 and net taxes, T.-$100, then consumption=S For the data in the following table, the consumption function is C-800+0.6(Y-7) Fill in the columns in the table and identify the equilibrium output. The equilibrium output is s Output $2,100 2,600 3,100 3,000 4,100 4,600 5,100 Net Taxes $100 100 100 100 100 100 100 Disposable Consumption Income Spending $ Saving (Round your response to the nearest whole number) 300 300 300 300 300 Planned Investment Government Spending $300 300 Planned Aggregate Purchases Expenditure $400 400 400 400 400 400 400 Unplanned Inventory Change

If the consumption function is C-800+0.6(Y-T), output, Y.= $2,100 and net taxes, T.-$100, then consumption=S For the data in the following table, the consumption function is C-800+0.6(Y-7) Fill in the columns in the table and identify the equilibrium output. The equilibrium output is s Output $2,100 2,600 3,100 3,000 4,100 4,600 5,100 Net Taxes $100 100 100 100 100 100 100 Disposable Consumption Income Spending $ Saving (Round your response to the nearest whole number) 300 300 300 300 300 Planned Investment Government Spending $300 300 Planned Aggregate Purchases Expenditure $400 400 400 400 400 400 400 Unplanned Inventory Change

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 3TY

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If the consumption function is C= 800 +0.6(Y-T), output, Y = $4,600 and net taxes, T, = $100, then consumption = $(Round your response to the nearest whole number.) ( I'm not sure please confirm this, I'm in hurry!!!)
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?
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