Q.2.4Calculate the tax revenue to the government of this country when the economyremains in equilibrium.Q.2.5Calculate what the new equilibrium income should be if the government of thiscountry decides to cancel all taxes, implying the tax rate would now be 0%.Q.2.6Before the government decreased the tax rate, how much of governmentspending was required to bring the economy to full employment? Question 2The following information is provided about an open economy with a government.information to answer the questions that follow:C = 450 + 0.4Y|= 350G = 150X = 70Z = 35 + 0.1YT= 0.15YYf = 1550Q.2.1Calculate the level of autonomous spending in this economy.Q.2.2Calculate the size of the multiplier(Note: Round your answer to two decimal places)Q.2.3Calculate the equilibrium level of income(Hint: use the multiplier method)

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Question 2 The following information is provided about an open economy with a government information to answer the questions that follow: C = 450 + 0.4Y |= 350 G = 150 X = 70 Z = 35 + 0.1Y T= 0.15Y Yf = 1550 Q.2.1 Calculate the level of autonomous spending in this economy. Q.2.2 Calculate the size of the multiplier (Note: Round your answer to two decimal places) Q.2.3 Calculate the equilibrium level of income

Question 2 The following information is provided about an open economy with a government information to answer the questions that follow: C = 450 + 0.4Y |= 350 G = 150 X = 70 Z = 35 + 0.1Y T= 0.15Y Yf = 1550 Q.2.1 Calculate the level of autonomous spending in this economy. Q.2.2 Calculate the size of the multiplier (Note: Round your answer to two decimal places) Q.2.3 Calculate the equilibrium level of income

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter10: Income And Expenditures Equilibrium

Section: Chapter Questions

Problem 2E

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The following information is provided about an open economy with a government. Use the information to answer the questions that follow: C = 450 + 0.4Y I = 350 G = 150 X = 70 Z = 35 + 0.1Y T = 0.15Y Yf = 1550 Q.2.1 Calculate the level of autonomous spending in this economy. (2) Q.2.2 Calculate the size of the multiplier (Note: Round your answer to two decimal places) (4) Q.2.3 Calculate the equilibrium level of income (Hint: use the multiplier method) (2) Calculate the tax revenue to the government of this country when the economy remains in equilibrium. (2) Q.2.5 Calculate what the new equilibrium income should be if the government of this country decides to cancel all taxes, implying the tax rate would now be 0%. (6) Q.2.6 Before the government decreased the tax rate, how much of government spending was required to bring the economy to full employment?
The following information is provided about an open economy with a government. Use theinformation to answer the questions that follow:C = 450 + 0.4YI = 350G = 150X = 70Z = 35 + 0.1YT = 0.15YYf = 1550Q.2.1 Calculate the level of autonomous spending in this economy. Q.2.2 Calculate the size of the multiplier(Note: Round your answer to two decimal places)Q.2.3 Calculate the equilibrium level of income(Hint: use the multiplier method) Q.2.4 Calculate the tax revenue to the government of this country when the economyremains in equilibrium.Q.2.5 Calculate what the new equilibrium income should be if the government of thiscountry decides to cancel all taxes, implying the tax rate would now be 0%.Q.2.6 Before the government decreased the tax rate, how much of governmentspending was required to bring the economy to full employment?
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