Using the information below for a four sector economy, calculate the following: = 400 + 0.65 Yd = 100 + 0.15Y = 500 + 0.1 Y = 350 + 0.15 Y = 600 M = 50 + 0.2 Y Yf 3,715.28 = Y-T %3D Yd 7555Rtu yop Part 5: Suppose that government spending changes to G=450 + 0.1 Y. What is the value of the new equilibrium income (Ye2)? Number Using the new government spending function in Part 5, calculate the following: Part 6: What is the size of the positive(+Ynegative(-) output gap? Number Part 7: Change in government spending (increase(+ydecrease(-) required to close the new gap? Number Part 8: What was the value of the Govt surplus(+)ydeficit(-) at Ye2? (Before the change that took place in part 7) Number

Using the information below for a four sector economy, calculate the following: = 400 + 0.65 Yd = 100 + 0.15Y = 500 + 0.1 Y = 350 + 0.15 Y = 600 M = 50 + 0.2 Y Yf 3,715.28 = Y-T %3D Yd 7555Rtu yop Part 5: Suppose that government spending changes to G=450 + 0.1 Y. What is the value of the new equilibrium income (Ye2)? Number Using the new government spending function in Part 5, calculate the following: Part 6: What is the size of the positive(+Ynegative(-) output gap? Number Part 7: Change in government spending (increase(+ydecrease(-) required to close the new gap? Number Part 8: What was the value of the Govt surplus(+)ydeficit(-) at Ye2? (Before the change that took place in part 7) Number

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter19: The Keynesian Model In Action

Section: Chapter Questions

Problem 3SQ

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Explain how to derive a total expenditures (TE) curve.
You are given the following information about a closed economy with no government:Consumption = 445 + 0.75Y Investment = 250 Calculate the equilibrium level of income.
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You are given the following information about a closed economy with no government:Consumption = 445 + 0.75Y Investment = 250 Calculate the value of autonomous spending.