The following are exogenous (not directly affected by income): G = 9 I = 14 X = M = 0 The consumption function is: C = k + cY, where k = 8, c = 0.6 What is the equilibrium level of GDP? State to ONE decimal place What is the multiplier for this economy? The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The consumption function is: C = k + cY, where k = 3, c = 0.8 What is the equilibrium level of GDP? What is the multiplier? Same information as in the previous question: The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The consumption function is: C = k + cY, where k = 3, c = 0.8 Imagine the maximum potential output or real GDP of this economy is 100. Assume that is the same as saying we reach the edge of the PPF at 100. Now assume we want to get that economy from the current level of GDP to its maximum potential of 100. We can do this in two ways - either increase government spending (G) or reduce taxes, (we will soon learn that doing this is called "using expansionary fiscal policy") but this economy does not tax its citizens so the only way to do it to increase G. How much do we increase government spending so that actual GDP reaches potential output/edge of the PPF at 100? Answer to maximum ONE decimal place.
The following are exogenous (not directly affected by income):
G = 9
I = 14
X = M = 0
The consumption function is:
C = k + cY, where k = 8, c = 0.6
What is the equilibrium level of GDP? State to ONE decimal place
What is the multiplier for this economy?
The following are exogenous (not directly affected by income):
G = 11
I = 4
X = M = 0
The consumption function is:
C = k + cY, where k = 3, c = 0.8
What is the equilibrium level of GDP?
What is the multiplier?
Same information as in the previous question:
The following are exogenous (not directly affected by income):
G = 11
I = 4
X = M = 0
The consumption function is:
C = k + cY, where k = 3, c = 0.8
Imagine the maximum potential output or real GDP of this economy is 100. Assume that is the same as saying we reach the edge of the
Now assume we want to get that economy from the current level of GDP to its maximum potential of 100.
We can do this in two ways - either increase government spending (G) or reduce taxes, (we will soon learn that doing this is called "using expansionary fiscal policy") but this economy does not tax its citizens so the only way to do it to increase G. How much do we increase government spending so that actual GDP reaches potential output/edge of the PPF at 100? Answer to maximum ONE decimal place.
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