the following information on economy X to answer the questions below. Consumption function: C = 250 + 0.8Y Investment spending: I = 150 Government spending: G = 500 Exports of goods and services: X = 200 Imports of goods and services: Z = 150 Proportional tax rate: t =25% Full employment level of income = 3575 Q.4.1.1 Calculate total autonomus spending for economy X. Q.4.1.2 Calculate the multiplier for economy X. Q.4.1.3 Calculate the equilibrium income for the
the following information on economy X to answer the questions below. Consumption function: C = 250 + 0.8Y Investment spending: I = 150 Government spending: G = 500 Exports of goods and services: X = 200 Imports of goods and services: Z = 150 Proportional tax rate: t =25% Full employment level of income = 3575 Q.4.1.1 Calculate total autonomus spending for economy X. Q.4.1.2 Calculate the multiplier for economy X. Q.4.1.3 Calculate the equilibrium income for the
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section: Chapter Questions
Problem 3TY
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the following information on economy X to answer the questions below.
Consumption function: C = 250 + 0.8Y
Investment spending: I = 150
Government spending: G = 500
Exports of goods and services: X = 200
Imports of goods and services: Z = 150
Proportional tax rate: t =25%
Full employment level of income = 3575
Q.4.1.1
Calculate total autonomus spending for economy X.
Q.4.1.2
Calculate the multiplier for economy X.
Q.4.1.3
Calculate the equilibrium income for the economy.
Q.4.1.4
Calculate the change in government spending required to reach full employment level of income.
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