Business, 27.11.2019 21:31, saladdressing1425

Consider planned aggregate expenditure model: planned investment, i = $50 billion; government spending g = $50 billion; taxes are equal to $50 billion; the consumption function, c(y-t)= $100 billion + 0.80(y-t). a. what is the equilibrium level of output? b. if output in the economy started at $900 billion, what would happen to inventories and output? c. at the equilibrium level of output: what are total consumption and savings? d. if taxes decreased to $25 billion, what would be the new level of equilibrium output? calculate the tax multiplier? e. if taxes stayed at $50 billion and spending increased to $75 billion, what would be the new level of equilibrium output? calculate the government spending multiplier? f. how would your answers change to a, d, and e if the consumption function were instead c(y-t)= $140 billion + 0.60(y-t).

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 11:00, nicko10

The following transactions occurred during july: received $1,000 cash for services provided to a customer during july. received $4,000 cash investment from bob johnson, the owner of the business received $850 from a customer in partial payment of his account receivable which arose from sales in june. provided services to a customer on credit, $475. borrowed $7,000 from the bank by signing a promissory note. received $1,350 cash from a customer for services to be rendered next year. what was the amount of revenue for july?

Answers: 1

continue

Business, 22.06.2019 17:10, lerasteidl

To : of $25 up to 35 2 35 up to 45 5 45 up to 55 7 55 up to 65 20 65 up to 75 16 is$25 up to $35 ?

Answers: 1

continue

Business, 22.06.2019 18:40, bella2331

Under t, the point (0,2) gets mapped to (3,0). t-1 (x, y) →

Answers: 3

continue

Business, 22.06.2019 21:00, nasrah

Dozier company produced and sold 1,000 units during its first month of operations. it reported the following costs and expenses for the month: direct materials $ 69,000 direct labor $ 35,000 variable manufacturing overhead $ 15,000 fixed manufacturing overhead 28,000 total manufacturing overhead $ 43,000 variable selling expense $ 12,000 fixed selling expense 18,000 total selling expense $ 30,000 variable administrative expense $ 4,000 fixed administrative expense 25,000 total administrative expense $ 29,000 required: 1. with respect to cost classifications for preparing financial statements: a. what is the total product cost

Answers: 2

continue

Do you know the correct answer?

Consider planned aggregate expenditure model: planned investment, i = $50 billion; government spen...