Consumption is given by C-100+0.8YD and 1-50. The fiscal policy is summarized by G-200, TR 62.5 and t 0.25 a) what is the equilibrium level of income? what is the value of the new multiplier? Why is this less than the multiplier in the earlier problem? b) what is the value of the budget surplus(BS) when1=507? What is BS when investment increases to 1007? .C) Assuming that the full employment level of income Y-1200, what is the full employment BS* when I=50

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A: 2) IS curve shows the negative or inverse relationship between income or GDP and interest rate.

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A:

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A: Here, given information is, Investment (I): 150 Government spending (G): 150 Taxes (T): 150…

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Q: None

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Q: expenditures, income 120 110 100 90 80 70 60 50 40- 30 20 10 0 (b) 3/2 O (c) 5/2 O (d) 1/2 (e) 2 06.…

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A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

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A: Note:- Since we can only answer upto three subparts, we'll answer first three. Please repost the…

Q: isposable income (YD)?

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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Q: . What will be the level of consumption spending at an income level of 36? a) 30 b) 24 c) 28 d) 16…

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A:

Q: A) The aggregate consumption function of Ekonland is known to be C= a + bYa and the tax structure is…

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Q: . How much is the savings of the people of the country if the national income is 400. e. Make a…

A: When the Y = 0       C = 60 S = Y - C  This is the autonomous amount of consumption and at this…