In this chapter we have assumed that the fiscal policy variables G and T are independent of the level of income. In the real world, however, this is not the case. Taxes typically depend on the level of income and so tend to be higher when income is higher. In this problem, we examine how this automatic response of taxes can help reduce the impact of changes in autonomous spending on output. Consider the following behavioral equations: C = Go + G,YD T = t, + t,Y Yo = Y - T G and / are both constant. Assume that t, is between 0 and 1. Note co is autonomous consumption, c, is the propensity to consume, and to is the part of taxes not dependent on income. Solve for equilibrium output. (Use I instead of i in your equation.) Y=D (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the_ character.)

In this chapter we have assumed that the fiscal policy variables G and T are independent of the level of income. In the real world, however, this is not the case. Taxes typically depend on the level of income and so tend to be higher when income is higher. In this problem, we examine how this automatic response of taxes can help reduce the impact of changes in autonomous spending on output. Consider the following behavioral equations: C = Go + G,YD T = t, + t,Y Yo = Y - T G and / are both constant. Assume that t, is between 0 and 1. Note co is autonomous consumption, c, is the propensity to consume, and to is the part of taxes not dependent on income. Solve for equilibrium output. (Use I instead of i in your equation.) Y=D (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the_ character.)

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Similar questions

Your Turn: The Gas Guzzler Tax is imposed on manufacturers on the sale of new-model cars (not minivans, sport utility vehicles, or pickup trucks) whose fuel economy fails to meet certain statutory regulations, to discourage the production of fuel-inefficient vehicles. The tax is collected by the IRS and paid by the manufacturer. The table (top right) shows the amount of tax that the manufacturer must pay for a vehicle's miles per gallon fuel efficiency. 12.5 13.5 MPG (M) 14.5 15.5 16.5 17.5 18.5 19.5 20.5 21.5 22.5 Tax per Car (T) $6400 $5400 $4500 $3700 $3300 $2600 $2100 $1700 $1300 $1000 $0 1. Plot the data, verify that they are roughly linear, and add a line of best fit. Line of Best Fit: 2. Identify and interpret the meaning of the slope and the vertical intercept. 3. Predict the tax for a car which gets 20 MPG. Is this interpolation or extrapolation? 4. Predict the tax for a car which gets 10 MPG. Is this interpolation or extrapolation? 5. Predict the tax for a car which gets 30…
Indicate whether the following sentences are true or false: (T/F) 3Analytical research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening.
[itemD4] (refer to the photo below) Describe the pattern between the wolf (predator) population in relation to the moose (prey) population.
i want Solution Part 1, 2,3
rience. Question Three The following data represent the net profits made by a sample of 25 companies that operate in real-state sector. 56 97 78 61 79 93 84 76 58 92 89 96 42 44 85 77 53 88 62 84 62 82 75 95 89 1) Choose the best graphical presentation and justify your answer. 2) Based on your answer in (1), construct the selected graphical presentation and comment on the results. Based on your answer in (2), do you think the sector performance is satisfactory? Justify your answer.
In regression terminology, X and Y are commonly referred to as: response and dependent variables, respectively. predictor and explanatory variables, respectively. dependent and independent variables, respectively. predictor and response variables, respectively.
The following table shows retail sales in drug stores in billions of dollars in the U.S. for years since 1995. 220- 210- 200 190- 180- 170- 160- 150- 140- 130- 120- 110 100 Year Retail Sales 0 3 6 9 12 15 Let y be the retail sales in billions of dollars in x years since 1995. A linear model for the data is Y = 9.44x + 84.182. 90- 80¹ 85.851 108.426 141.781 169.256 202.297 222.266 6 9 12 Use the above scatter plot to decide whether the linear model fits the data well. The function is a good model for the data. O The function is not a good model for the data Estimate the retails sales in the U. S. in 2017. billions of dollars. Use the model to predict the year in which retails sales will be $235 billion.
To generate a profit from its o'Books e-book service, OHaganBooks.com needs to know how the demand for novels depends on the price it charges. During the first month of the service, it was charging $10 per novel and sold 350. Lowering the price (p) to $5.50 per novel had the effect of increasing demand (q) to 620 novels per month. (a) Use the given data to construct a linear demand equation q(p) per month. q(p) = (b) Use the demand equation you constructed in part (a) to estimate the demand per month if the price were raised to $15 per novel. novels per month (c) Author royalties and copyright fees cost the company an average of $3 per novel, and the monthly cost of operating and maintaining the service amounts to $900 per month. Using this information, determine which of the three prices ($5.50, $10, and $15) would result in the largest profit, and the size of that profit. profit maximizing price $ maximum profit $
#22 - CAT scans are becoming incredibly common in children and adolescents . Suppose a research team is interested in the effects of early and repeated CAT scanning on blood and bone cancers in Sweden . The research team decided to collect a list of all children aged with blood or bone cancers and retrospectively look at the number of CAT scans they have received over the course of their lives . What are the exposure ( independent ) and outcome ( dependent ) variables respectively ?
Consider the following enrollment data for Big Mountain Community College. 3758 Technical Education Male students enrolled in 2005 and 4073 Technical Education Male students enrolled in 2008. 4203 Technical Education Female students enrolled in 2005 and 4446 Technical Education Female students enrolled in 2008. For each student population, find a linear model such that x represents the years after 2000 and E represents the enrollment. The linear model for Technical Education Male Enrollment: E = The linear model for Technical Education Female Enrollment: E = In what year will these enrollments be the same? (Round to nearest whole year)
Training Dept. of Nimrod Inc wants to develop a regression-based compensation model (compensation in $ per year, Comp) for its mid-level managers to encourage performance, loyalty, and continuing education based on three variables. ▪ Business unit-profitability (Profit per year in $). ▪ Working experiences in Nimrod Inc (Years). ▪ Whether or not a manager has a graduate degree (Grads). If a manager has a graduate degree equals 1, 0 otherwise. Table Attached Question: Which explanatory variables and interaction terms are significant and not significant at alpha = 5%? Explain your answer briefly.
Q3B All Fresh Seafood is a wholesale fish company based on the east coast of the U.S. Catalina Offshore Products is a wholesale fish company based on the west coast of the U.S. Table #9.2.5 contains prices from both companies for specific fish types ("Seafood online," 2013) ("Buy sushi grade," 2013). Data is in following table: Fish All Fresh Seafood Prices Catalina Offshore Products Prices Cod 19.99 17.99 Tilapi 6.00 13.99 Farmed Salmon 19.99 22.99 Organic Salmon 24.99 24.99 Grouper Fillet 29.99 19.99 Tuna 28.99 31.99 Swordfish 23.99 23.99 Sea Bass 32.99 23.99 Striped Bass 29.99 14.99 Do the data provide enough evidence to show that a west coast fish wholesaler is more expensive than an east coast wholesaler? Test at the 5% level. (iv) Determine sample mean of differences x⎯⎯div Determine sample mean of differences x¯d Enter in decimal form to nearest ten-thousandth. Examples of correctly…