B/ Consider the Open Economy with Government Participation (i.e. the Mixed Economy): Planned Expenditures: AE = C +1+ G +X - IM Consumption: C = 346 + 0.8 (Y- T) Net Tax Revenue: T = 110 + 0.22 Y Gross Investment: I = 520 Government Expenditures: G = 770 Exports: X = 843 Imports: IM = 114 + 0.09 Y Potential Output: Yp = 4,872 For answers with decimals, use two (2) decimal places. Part 7: We can write the Aggregate Expenditures equation as: AE = 2277 + 0.09 (Y). Part 8: Calculate the Expenditures Multiplier for the Mixed Economy. 4.55 Part 9: Calculate the Autonomous Tax Multiplier for the Mixed Economy. 0.41
B/ Consider the Open Economy with Government Participation (i.e. the Mixed Economy): Planned Expenditures: AE = C +1+ G +X - IM Consumption: C = 346 + 0.8 (Y- T) Net Tax Revenue: T = 110 + 0.22 Y Gross Investment: I = 520 Government Expenditures: G = 770 Exports: X = 843 Imports: IM = 114 + 0.09 Y Potential Output: Yp = 4,872 For answers with decimals, use two (2) decimal places. Part 7: We can write the Aggregate Expenditures equation as: AE = 2277 + 0.09 (Y). Part 8: Calculate the Expenditures Multiplier for the Mixed Economy. 4.55 Part 9: Calculate the Autonomous Tax Multiplier for the Mixed Economy. 0.41
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1

Transcribed Image Text:B/ Consider the Open Economy with Government Participation (i.e. the Mixed Economy):
Planned Expenditures: AE = C +1+ G +X - IM
Consumption: C = 346 + 0.8 (Y- T)
%3D
Net Tax Revenue: T = 110 + 0.22 Y
Gross Investment: I = 520
Government Expenditures: G = 770
Exports: X = 843
%3D
Imports: IM = 114 + 0.09 Y
Potential Output: Yp = 4,872
For answers with decimals, use two (2) decimal places.
Part 7: We can write the Aggregate Expenditures equation as: AE = 2277
0.09
(Y).
+
Part 8: Calculate the Expenditures Multiplier for the Mixed Economy. 4.55
Part 9: Calculate the Autonomous Tax Multiplier for the Mixed Economy. 0.41
Part 10: Calculate the Balanced-Budget Multiplier for the Mixed Economy. 4.14
Part 11: Calculate the equilibrium ouput (Yº) for the Mixed Economy. -10705
Part 12: Calculate the change in Government Expenditures (AG) required to close the output gap (Yf-Ye). Number
Part 13: Calculate the change in autonomous Taxes (ATo) required to close the output gap (Yf-Ye). Number
Part 14: The expenditures multiplier Number
for the Open Economy with Government Participation (Mixed Economy) is
the expenditures multiplier Number
for the Closed Economy with no Government Participation
Click for List
because Click for List
Part 15: Calculate Total Injections at the equilibrium rate of output: Number
Part 16: Calculate Total Leakage at the equilibrium rate of output: Number

Transcribed Image Text:B/ Consider the Open Economy with Government Participation (i.e. the Mixed Economy):
Planned Expenditures: AE = C +1+ G +X - IM
Consumption: C = 346 + 0.8 (Y- T)
Net Tax Revenue: T = 110 + 0.22 Y
Gross Investment: I = 520
Government Expenditures: G = 770
Exports: X = 843
Imports: IM = 114 + 0.09 Y
Potential Output: Yp = 4,872
For answers with decimals, use two (2) decimal places.
Part 7: We can write the Aggregate Expenditures equation as: AE = 2277
0.09
(Y).
+
Part 8: Calculate the Expenditures Multiplier for the Mixed Economy. 4.55
Part 9: Calculate the Autonomous Tax Multiplier for the Mixed Economy. 0.41
Part 10: Calculate the Balanced-Budget Multiplier for the Mixed Economy. 4.14
Part 11: Calculate the equilibrium ouput (Y®) for the Mixed Economy.
-10705
Part 12: Calculate the change in Government Expenditures (AG) required to close the output gap (Yf-Ye). Number
Part 13: Calculate the change in autonomous Taxes (ATo) required to close the output gap (Yf-Ye). Number
Part 14: The expenditures multiplier Number
for the Open Economy with Government Participation (Mixed Economy) is
Click for List
the expenditures multiplier Number
for the Closed Economy with no Government Participation
larger than
equal to
smaller than
ections at the equilibrium rate of output: Number
indeterminate with
indistinguishable from
akage at the equilibrium rate of output: Number
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