The following set of equations describes the economy of a country A, in Africa C = 2000 + 0.75Id consumption equation I = 36000 investment G = 36000 Government Expenditure X = 2550 Exports M = 410 + 0.3Y Import equation T = 100 + 0.25Y Tax equation Compute the equilibrium National Income and imports for the country A Complete the tax multiplier and the Government spending multiplier Compute the equilibrium income and consumption
The following set of equations describes the economy of a country A, in Africa C = 2000 + 0.75Id consumption equation I = 36000 investment G = 36000 Government Expenditure X = 2550 Exports M = 410 + 0.3Y Import equation T = 100 + 0.25Y Tax equation Compute the equilibrium National Income and imports for the country A Complete the tax multiplier and the Government spending multiplier Compute the equilibrium income and consumption
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
Section: Chapter Questions
Problem 1WNG
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The following set of equations describes the economy of a country A, in Africa
C = 2000 + 0.75Id consumption equation
I = 36000 investment
G = 36000 Government Expenditure
X = 2550 Exports
M = 410 + 0.3Y Import equation
T = 100 + 0.25Y Tax equation
- Compute the equilibrium
National Income and imports for the country A - Complete the tax multiplier and the Government spending multiplier
- Compute the equilibrium income and consumption
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