Using the information below for a four sector economy, calculate the following: = 400 + 0.65 Yd = 100 + 0.15Y = 500 + 0.1 Y = 350 + 0.15 Y = 600 M = 50 + 0.2 Y Yf 3,715.28 = Y-T %3D Yd 7555Rtu yop Part 5: Suppose that government spending changes to G=450 + 0.1 Y. What is the value of the new equilibrium income (Ye2)? Number Using the new government spending function in Part 5, calculate the following: Part 6: What is the size of the positive(+Ynegative(-) output gap? Number Part 7: Change in government spending (increase(+ydecrease(-) required to close the new gap? Number Part 8: What was the value of the Govt surplus(+)ydeficit(-) at Ye2? (Before the change that took place in part 7) Number

Using the information below for a four sector economy, calculate the following: = 400 + 0.65 Yd = 100 + 0.15Y = 500 + 0.1 Y = 350 + 0.15 Y = 600 M = 50 + 0.2 Y Yf 3,715.28 = Y-T %3D Yd 7555Rtu yop Part 5: Suppose that government spending changes to G=450 + 0.1 Y. What is the value of the new equilibrium income (Ye2)? Number Using the new government spending function in Part 5, calculate the following: Part 6: What is the size of the positive(+Ynegative(-) output gap? Number Part 7: Change in government spending (increase(+ydecrease(-) required to close the new gap? Number Part 8: What was the value of the Govt surplus(+)ydeficit(-) at Ye2? (Before the change that took place in part 7) Number

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

Using the information below for a four sector economy, calculate the following:
C
400 + 0.65 Yd
!!
= 100 + 0.15 Y
500 + 0.1 Y
= 350 + 0.15Y
= 600
%3D
M
50 + 0.2 Y
3,715.28
Y-T
Yf
%3D
Yd
Part 5: Suppose that government spending changes to G-450 + 0.1 Y. What is the value of the new equilibrium income (Ye2)?
Number
Using the new government spending function in Part 5, calculate the following:
Part 6: What is the size of the positive(+)/negative(-) output gap? Number
Part 7: Change in government spending (increase(+ydecrease(-) required to close the new gap? Number
Part 8: What was the value of the Govt surplus(+ydeficit(-) at Ye2? (Before the change that took place in part 7) Number

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