Mathematics, 26.06.2020 16:01, dsanders20
Let: C = consumption, Ip = investment spending (as a function of price level), G = government spending, Tx = tax revenue, Yd = after-tax income, Assume for a given closed economy: C=100 + 0.9 Yd – 20P Ip= 400 – 40P G=300 T=100 Moreover, aggregate supply curve for this economy is defined by the following equation: P=1.41 + 0.0001Y a. (10 points) According to the investment equation (Ip= 400 – 40P) as overall price level in the economy increases investment spending decreases. How could you explain this situation? Please use graphs to elaborate your answer. b. (10 points) Find the equilibrium level of overall price and aggregate output in this economy. What would be the value of consumption and investment spending at this equilibrium? c. (10 points) How would the equilibrium aggregate output and price level change if government spending increases to Gnew=400? What would be the value of consumption and investment spending at this new equilibrium? d. (10 points) Compare equilibrium values of investment spending and consumption you find in parts (c) and (d). How would you explain the changes? Elaborate your answer for both investment and consumption.
Answers: 1
Mathematics, 21.06.2019 21:20, ladawnrowles005
Drag each expression to the correct location on the solution. not all expressions will be used. consider the polynomial 8x + 2x2 - 20x - 5. factor by grouping to write the polynomial in factored form.
Answers: 1
Mathematics, 21.06.2019 22:00, jerrygentry3411
The figure shows the front side of a metal desk in the shape of a trapezoid. what is the area of this trapezoid? 10 ft²16 ft²32 ft²61 ft²
Answers: 2
Mathematics, 22.06.2019 01:30, zacharysharpe2805
The angle of elevation from point a to the top of a cliff is 38 degrees . if point a is 80 feet from the base of the cliff , how high is the cliff ?
Answers: 3
Let: C = consumption, Ip = investment spending (as a function of price level), G = government spendi...
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