4 Question 13If the consumption function is given by C = (Y – T) and there is a tax cut of $200, how wouldwe expect the IS-LM model to shift?The IS curve shifts right by $200The IS curve shifts left by $200The IS curve shifts left by $400The LM curve shifts rightThe IS curve shifts right by $400Question 14Suppose an economy is described by the Solow model with population growth and technologicalprogress. If the production function is y = f(k) = ki, the depreciation rate is 5%, the populationgrowth rate is 1%, and technological growth is 4%, how can we describe the steady state capital asa function of the savings rate?O k* = 10s^2O k* = 10sO Not enough informationO k* = 100sO k* = 100s^2

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Question 13 If the consumption function is given by C = ? (Y – T) and there is a tax cut of $200, how would we expect the IS-LM model to shift? O The IS curve shifts right by $200 O The IS curve shifts left by $200 O The IS curve shifts left by $400 O The LM curve shifts right The IS curve shifts right by $400

Question 13 If the consumption function is given by C = ? (Y – T) and there is a tax cut of $200, how would we expect the IS-LM model to shift? O The IS curve shifts right by $200 O The IS curve shifts left by $200 O The IS curve shifts left by $400 O The LM curve shifts right The IS curve shifts right by $400

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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