question 1 -part D and E 1. Suppose that the economy can be described by the following equations:C = 400 + (8/9)*DII= 300G= 800T= (1/2)*Y(X -М) 3 0.a. If national income (Y) increased by $1, by how much would consumption increase? What isthe name of this concept?b. Find the equilibrium level of output.c. The budget for this fiscal year increases government spending by $50.i) Sketch the effect of the increase in government spending.ii) Calculate the new equilibrium level of income.iii) Calculate the change in income and compare to the increase in government spending.Comment.iv) Given your numerical answer in part (iii), calculate the change in national incomewhen government spending increases by one dollar.v) Derive the actual value of the fiscal multiplier using an algebraic equation. Compareto part (iv).Now G assumes its original value of G = 800.d. Congress decreases the tax rate from (1/2) to (1/4)i) Sketch the effect of the decrease in the tax rate.ii) Calculate the new equilibrium level of income.e. Suppose that voters care more about reducing unemployment than the level of the federaldeficit. If you were running for Congress this year (and you wanted to win the election), wouldyou promise to increase or to decrease government spending? Explain your answer.

Given information C= 400+(8/9)*DI I=300 G=800 T-1/2*Y X-M=0

1. Suppose that the economy can be described by the following equations: C = 400 + (8/9)*DI I= 300 G= 800 T= (1/2)*Y (X – M) = 0. a. If national income (Y) increased by $1, by how much would consumption increase? What is the name of this concept? b. Find the equilibrium level of output. c. The budget for this fiscal year increases government spending by $50. i) Sketch the effect of the increase in government spending. ii) Calculate the new equilibrium level of income. iii) Calculate the change in income and compare to the increase in government spending

1. Suppose that the economy can be described by the following equations: C = 400 + (8/9)DI I= 300 G= 800 T= (1/2)Y (X – M) = 0. a. If national income (Y) increased by $1, by how much would consumption increase? What is the name of this concept? b. Find the equilibrium level of output. c. The budget for this fiscal year increases government spending by $50. i) Sketch the effect of the increase in government spending. ii) Calculate the new equilibrium level of income. iii) Calculate the change in income and compare to the increase in government spending

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Explain unsolicited mails and communication with children (Ecommerce) in brief. I need to prepare 5-10 minutes presentation for it.
Don’t do question 9, just look at the info and chart on question 9 and apply it to question 10 in the next image.
why choose A?
Exercise: 01 Issue a promissory note: ⑴Amount ￡3,026.00 ⑵Date and place of issue 8/August/2009，Guangzhou, China ⑶Tenor At 90 days after date ⑷Maker Guangdong Imp. & Exp. Co., Guangzhou ⑸Payee Chemicals Import & Export Company London ⑴Drawer Thames Enterprises Ltd., London ⑵Drawee The National Westminster Bank Ltd., London ⑶Payee Philips Hong Kong ⑷Date and place of issue 07/01/2001，London ⑸Amount GBP79,014 Exercise: 02 Issue a check:
Question:- Cyber risk insurance that covers both customers and legal settlements would be known as
Shane teaches guitar lessons. The graph below shows the comparison of his expenses and revenue for one month. r ($) L -1000 000 -600 200 Number of Lessons Expenses Revenue How many lessons must he teach to break even?
whats the answer to questions 4 and 5
Tyeped plz and asap please provide a quality solution for better ratings and take Care of plagiarism