QUESTION 37 1 Q = 1- mpc + mpc t (Ca +I+G+Xp) %3D 1 AQ (AC, + AI + AG + AXn) %3D 1- mpc + mpc · t |= 100, G = 200, Ca = 100, Xn =-100, mpc = 4/5, t (income tax rate) = 1/4 %3D 37. Given this model, what would be the change in equilibrium level of income were G to increase to 250? 125 300 750 500 1,000

QUESTION 37 1 Q = 1- mpc + mpc t (Ca +I+G+Xp) %3D 1 AQ (AC, + AI + AG + AXn) %3D 1- mpc + mpc · t |= 100, G = 200, Ca = 100, Xn =-100, mpc = 4/5, t (income tax rate) = 1/4 %3D 37. Given this model, what would be the change in equilibrium level of income were G to increase to 250? 125 300 750 500 1,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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