Seatwork on Trade Policy Given: 1. Y=C+I+G+X-M 2. C=b+cYd (Consumption function) 3. T-s+tY (tax function) 4. Mn+ mY (import function) 5. Yd=Y-T (disposable income) 6. C=100+.90 Yd 7. T=40+.20Y 8. M = 10 +.05Y 9. 1=38 G=75 X=25 Questions: 1. Calculate the equilibrium level of income using the model Y=C+I+G+X-M. 2. Determine the size of the new multiplier (import multiplier) for this economy.

Seatwork on Trade Policy Given: 1. Y=C+I+G+X-M 2. C=b+cYd (Consumption function) 3. T-s+tY (tax function) 4. Mn+ mY (import function) 5. Yd=Y-T (disposable income) 6. C=100+.90 Yd 7. T=40+.20Y 8. M = 10 +.05Y 9. 1=38 G=75 X=25 Questions: 1. Calculate the equilibrium level of income using the model Y=C+I+G+X-M. 2. Determine the size of the new multiplier (import multiplier) for this economy.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter20: Exchange Rates And The Macroeconomy

Section: Chapter Questions

Problem 3TY

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