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GDP 10000 9500 9000 8500 8000 7500 7000 6500 6000 5500 5000 4500 4000 3500 3000 2500 2000 Hypothetical Timeless Economy Cons Imports Savings Taxes1 Investment Govt 6500 2000 6200 1900 5900 1800 5600 1700 5300 1600 5000 1500 4700 1400 1000 4400 1300 900 4100 1200 800 3800 1100 700 3500 1000 600 3200 900 500 2900 800 400 2600 300 2300 200 100 0 -100 -200 -300 -400 700 600 2000 500 1700 400 1400 300 1100 200 800 500 a) 8000; 1.25 b) 8500; 1.333 c) 8500; 1.666 d) 10,000; 4.1666 100 1600 1500 0 1900 1800 1400 1700 1300 1200 1100 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 900 900 900 900 900 900 900 900 900 900 900 900 900 900 900 900 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 300 900 1500 200 900 1000 100 900 500 0 900 2100 0 -100 900 2100 1. The stable equilibrium when Government Spending is equal to 2100 billion is a) 7000; 1/2 b) 7500; 2/5 c) 7500; 3/5 d) 8500; 3/4 2100 2100 2100 2100 2100 2100 2100 2100 2100 Exports Tots Spending1 Total Spending2 1000 1000 1000 2700 1000 2700 1000 2700 1000 2700 1000 2700 1000 2700 1000 2700 1000 2700 1000 2700 2700 2700 2700 2700 2700 2700 GovtSp2 2700 2700 2700 2700 2700 2700 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 the leakage rate is equal to 2. If Direct Government Spending were increased from 2100 to 2700, then the new stable equilibrium would be would be and the income multiplier

GDP 10000 9500 9000 8500 8000 7500 7000 6500 6000 5500 5000 4500 4000 3500 3000 2500 2000 Hypothetical Timeless Economy Cons Imports Savings Taxes1 Investment Govt 6500 2000 6200 1900 5900 1800 5600 1700 5300 1600 5000 1500 4700 1400 1000 4400 1300 900 4100 1200 800 3800 1100 700 3500 1000 600 3200 900 500 2900 800 400 2600 300 2300 200 100 0 -100 -200 -300 -400 700 600 2000 500 1700 400 1400 300 1100 200 800 500 a) 8000; 1.25 b) 8500; 1.333 c) 8500; 1.666 d) 10,000; 4.1666 100 1600 1500 0 1900 1800 1400 1700 1300 1200 1100 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 900 900 900 900 900 900 900 900 900 900 900 900 900 900 900 900 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 300 900 1500 200 900 1000 100 900 500 0 900 2100 0 -100 900 2100 1. The stable equilibrium when Government Spending is equal to 2100 billion is a) 7000; 1/2 b) 7500; 2/5 c) 7500; 3/5 d) 8500; 3/4 2100 2100 2100 2100 2100 2100 2100 2100 2100 Exports Tots Spending1 Total Spending2 1000 1000 1000 2700 1000 2700 1000 2700 1000 2700 1000 2700 1000 2700 1000 2700 1000 2700 1000 2700 2700 2700 2700 2700 2700 2700 GovtSp2 2700 2700 2700 2700 2700 2700 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 the leakage rate is equal to 2. If Direct Government Spending were increased from 2100 to 2700, then the new stable equilibrium would be would be and the income multiplier

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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GDP 10000 9500 9000 8500 8000 7500 7000 6500 6000 5500 5000 4500 Hypothetical Timeless Economy Cons 4000 3500 3000 2500 2000 1500 1000 500 Imports Savings Taxes1 Investment Govt 6500 2000 6200 1900 5900 1800 5600 1700 5300 1600 5000 1500 4700 1400 4400 1300 4100 1200 3800 3500 3200 900 2900 800 2600 700 2300 600 2000 500 1700 400 1400 300 1100 800 500 1100 1000 a) 8000; 1.25 b) 8500; 1.333 c) 8500; 1.666 d) 10,000; 4.1666 1600 1500 1400 1300 1200 200 100 0 1100 1000 900 800 700 600 500 400 900 900 900 800 900 700 900 600 900 500 900 400 900 300 900 200 900 100 900 0 900 2100 0 -100 900 2100 1. The stable equilibrium when Government Spending is equal to 2100 billion is a) 7000; 1/2 b) 7500; 2/5 c) 7500; 3/5 d) 8500; 3/4 300 200 100 0 1900 1800 -100 -200 -300 -400 1700 1600 1500 1400 1300 1200 1100 1000 900 900 900 900 900 900 900 900 900 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 GovtSp2 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 Exports Tots Spending1 Total Spending2 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 the leakage rate is equal to 2. If Direct Government Spending were increased from 2100 to 2700, then the new stable equilibrium would be. would be and the income multiplier
Transcribed Image Text:GDP 10000 9500 9000 8500 8000 7500 7000 6500 6000 5500 5000 4500 Hypothetical Timeless Economy Cons 4000 3500 3000 2500 2000 1500 1000 500 Imports Savings Taxes1 Investment Govt 6500 2000 6200 1900 5900 1800 5600 1700 5300 1600 5000 1500 4700 1400 4400 1300 4100 1200 3800 3500 3200 900 2900 800 2600 700 2300 600 2000 500 1700 400 1400 300 1100 800 500 1100 1000 a) 8000; 1.25 b) 8500; 1.333 c) 8500; 1.666 d) 10,000; 4.1666 1600 1500 1400 1300 1200 200 100 0 1100 1000 900 800 700 600 500 400 900 900 900 800 900 700 900 600 900 500 900 400 900 300 900 200 900 100 900 0 900 2100 0 -100 900 2100 1. The stable equilibrium when Government Spending is equal to 2100 billion is a) 7000; 1/2 b) 7500; 2/5 c) 7500; 3/5 d) 8500; 3/4 300 200 100 0 1900 1800 -100 -200 -300 -400 1700 1600 1500 1400 1300 1200 1100 1000 900 900 900 900 900 900 900 900 900 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 GovtSp2 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 Exports Tots Spending1 Total Spending2 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 the leakage rate is equal to 2. If Direct Government Spending were increased from 2100 to 2700, then the new stable equilibrium would be. would be and the income multiplier
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