Consider a closed economy to which the Keynesian-cross analysis applies as follows: C = 300 +0.7(Y-T) T = 400 1 = 400 G = 400 C = Consumption T = Taxes I = Planned Investment G = Government Spending Part 1: If Y = 1,500, what is planned spending? Number Part 2: What is the value of inventory accumulation or decumulation (use "-" to indicate decumulation)? Number Part 3: What is equilibrium Y? Number Part 4: What is equilibrium consumption? Number Part 5: What is private saving? Number Part 6: What is public saving? Number Part 7: What is national saving? Number Part 8: If G is reduced to 200, how much does equilibrium income decrease (use" to indicate decrease)? Number Part 9: What is the multiplier for government spending? Number
Consider a closed economy to which the Keynesian-cross analysis applies as follows: C = 300 +0.7(Y-T) T = 400 1 = 400 G = 400 C = Consumption T = Taxes I = Planned Investment G = Government Spending Part 1: If Y = 1,500, what is planned spending? Number Part 2: What is the value of inventory accumulation or decumulation (use "-" to indicate decumulation)? Number Part 3: What is equilibrium Y? Number Part 4: What is equilibrium consumption? Number Part 5: What is private saving? Number Part 6: What is public saving? Number Part 7: What is national saving? Number Part 8: If G is reduced to 200, how much does equilibrium income decrease (use" to indicate decrease)? Number Part 9: What is the multiplier for government spending? Number
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 12E
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Transcribed Image Text:Consider a closed economy to which the Keynesian-cross analysis applies as follows:
C = 300 +0.7(Y-T)
T = 400
1 = 400
G = 400
C = Consumption
T = Taxes
I = Planned Investment
G = Government Spending
Part 1: If Y = 1,500, what is planned spending? Number
Part 2: What is the value of inventory accumulation or decumulation (use "-" to indicate decumulation)? Number
Part 3: What is equilibrium Y? Number
Part 4: What is equilibrium consumption? Number
Part 5: What is private saving? Number
Part 6: What is public saving? Number
Part 7: What is national saving? Number
Part 8: If G is reduced to 200, how much does equilibrium income decrease (use" to indicate decrease)? Number
Part 9: What is the multiplier for government spending? Number
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