Suppose structural model of an economy is given as follows. C = 100 + 0.80Yd Yd =Y-T I = 100 G = 100 T=100 / T = 60+0.9Y Find expenditure multiplier and changed income if changed G = 50 b). Tax multiplier when t =0.25 a)

Suppose structural model of an economy is given as follows. C = 100 + 0.80Yd Yd =Y-T I = 100 G = 100 T=100 / T = 60+0.9Y Find expenditure multiplier and changed income if changed G = 50 b). Tax multiplier when t =0.25 a)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose structural model of an economy is given as follows.
C = 100 + 0.80Yd
Yd Y-T
I = 100
G = 100
T =100 / T = 60+0.9Y
Find expenditure multiplier and changed income if
a)
changed G = 50
Tax multiplier when t =0.25
b).

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