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INCOME CONSUMPTION 60,000 65,000 58,000 62,000 A. Use the information above to calculate the marginal propensity to consume. B. i. Using the equilibrium condition Y = C+I+G, use the information given to solve for the value of the Equilibrium National Income. C = 100+ 0.8 y I = 150 G = 250 T = 200 ii. What is the value of the multiplier in this economy? Interest Income $150 Depreciation $36 Wages $67 Business Profits $200 Indirect Business Taxes $74 Rental Income $75 C. i. Use the information given to calculate the GDP, using the income approach. ii. Explain the difference between the 'accelerator' and the "multiplier.'

INCOME CONSUMPTION 60,000 65,000 58,000 62,000 A. Use the information above to calculate the marginal propensity to consume. B. i. Using the equilibrium condition Y = C+I+G, use the information given to solve for the value of the Equilibrium National Income. C = 100+ 0.8 y I = 150 G = 250 T = 200 ii. What is the value of the multiplier in this economy? Interest Income $150 Depreciation $36 Wages $67 Business Profits $200 Indirect Business Taxes $74 Rental Income $75 C. i. Use the information given to calculate the GDP, using the income approach. ii. Explain the difference between the 'accelerator' and the "multiplier.'

MACROECONOMICS
MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.A: Graphical Treatment Of Taxes And Fiscal Policy
Problem 2TY
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INCOME CONSUMPTION 60,000 65,000 58,000 62,000 A. Use the information above to calculate the marginal propensity to consume. B. i. Using the equilibrium condition Y = C+I+G, use the information given to solve for the value of the Equilibrium National Income. C = 100+ 0.8 y I = 150 G = 250 T = 200 ii. What is the value of the multiplier in this economy? Interest Income $150 Depreciation $36 Wages $67 Business Profits $200 Indirect Business Taxes $74 Rental Income $75 C. i. Use the information given to calculate the GDP, using the income approach. ii. Explain the difference between the 'accelerator' and the "multiplier.'
Transcribed Image Text:INCOME CONSUMPTION 60,000 65,000 58,000 62,000 A. Use the information above to calculate the marginal propensity to consume. B. i. Using the equilibrium condition Y = C+I+G, use the information given to solve for the value of the Equilibrium National Income. C = 100+ 0.8 y I = 150 G = 250 T = 200 ii. What is the value of the multiplier in this economy? Interest Income $150 Depreciation $36 Wages $67 Business Profits $200 Indirect Business Taxes $74 Rental Income $75 C. i. Use the information given to calculate the GDP, using the income approach. ii. Explain the difference between the 'accelerator' and the "multiplier.'
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