Problem set : National Income Determination a. Given: C- 800 + 8 (1-1) Y 1- 250 G- 1200 TR - 200 NX = 250 t- 0.25 Compute: 1. The government multiplier 2. Y-C Y-C+1; 3. Y-C+1+G. 4. Y-C+1+G+ NX 5. Proved that Y-AD from number 1-4. 6. Breakdown of AD in number 4.

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Problem set : National Income Determination
a Given:
C- 800 + .8 (1-1) Y
1-250
Ge 1200
TR = 200
NX = 250
t- 0.25
Compute: 1. The government multiplier
2. Y-C Y=C+1;
3. Y-C+1+ G.
4. Y=C+1+G+ NX
5. Proved that Y-AD from number 1-4.
6. Breakdown of AD in number 4.
7. Graphically show the 4 equilibrium income.
Transcribed Image Text:Problem set : National Income Determination a Given: C- 800 + .8 (1-1) Y 1-250 Ge 1200 TR = 200 NX = 250 t- 0.25 Compute: 1. The government multiplier 2. Y-C Y=C+1; 3. Y-C+1+ G. 4. Y=C+1+G+ NX 5. Proved that Y-AD from number 1-4. 6. Breakdown of AD in number 4. 7. Graphically show the 4 equilibrium income.
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