EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9781305465626
Author: Blinder
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 28.B, Problem 1TY
a)
To determine
The equilibrium level of GDP.
b)
To determine
The multipliers for government purchases and for fixed taxes.
c)
To determine
Some policies that would move GDP to the full employment level.
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Students have asked these similar questions
An economy is described by the following
equations:
Supply:
Y=F(K,L)=6K^0.6L^0.4
K=405, L=110
Demand:
C=231+0.8(Y-T)
|=1161.0-129r
G=150,T=120
NX=125-490e
r=r*= 5
A. What Is the level of GDP in this economy?
B. How much are household savings?
C. How much Is the government saving?
D. How much is National Saving?
E. How much is investment spending?
F. Net capital outflow is:
G. Equilibrium exchange rate is :
Suppose G drops to 142, Find:
H. National Saving
I. Investment
J. New trade balance
K. New Equilibrium exchange rate
Consider an economy described by the following set of equations: c = 120 +0.08Y I = 320 G = 480 X-IM = -80 T = 400 a. Find the actual level of GDP. b. If full employment comes at Y = 1000, would there be a recessionary gap or an inflationary gap? c. What spending changes will be necessary to eliminate this gap? d. What amount of tax changes will be necessary to eliminate this gap? e. What are some policies action that can be taken.
Evaluate the following statement: Even if the prices of a
large number of goods and services in the economy increase
dramatically, the real GDP for the economy can still fall.
Chapter 28 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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