We have the following information for an economy. All values are in billion dollars. Output Disposable Consumption possible Net (Income) Taxes Y T Income Y₁ =Y-T Spending C Saving S=Y-C Planned Investment Government Planned Purchases I G Aggregate Expenditure C+I+G $200 $100 $100 $80 $20 $80 $120 $280 300 100 200 160 40 80 120 360 400 100 300 240 60 80 120 440 500 100 400 320 80 80 120 520 600 100 500 400 100 80 120 600 700 100 600 480 120 80 120 680 800 100 700 560 140 80 120 760 900 100 800 640 160 80 120 840 1000 100 900 720 180 80 120 920 1100 100 1000 800 200 80 120 1000 1200 100 1100 880 220 80 120 1080 1300 100 1200 960 240 80 120 1160 1400 100 1300 1040 260 80 120 1240 In this economy, equilibrium income/output is At Y $1400, planned aggregate expenditure (Enter your response as an integer.) income, and income or output

We have the following information for an economy. All values are in billion dollars. Output Disposable Consumption possible Net (Income) Taxes Y T Income Y₁ =Y-T Spending C Saving S=Y-C Planned Investment Government Planned Purchases I G Aggregate Expenditure C+I+G $200 $100 $100 $80 $20 $80 $120 $280 300 100 200 160 40 80 120 360 400 100 300 240 60 80 120 440 500 100 400 320 80 80 120 520 600 100 500 400 100 80 120 600 700 100 600 480 120 80 120 680 800 100 700 560 140 80 120 760 900 100 800 640 160 80 120 840 1000 100 900 720 180 80 120 920 1100 100 1000 800 200 80 120 1000 1200 100 1100 880 220 80 120 1080 1300 100 1200 960 240 80 120 1160 1400 100 1300 1040 260 80 120 1240 In this economy, equilibrium income/output is At Y $1400, planned aggregate expenditure (Enter your response as an integer.) income, and income or output

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

ChapterD: The Expenditure-output Model

Section: Chapter Questions

Problem 24CTQ: Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on...

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Please see attachment Answer neatly Show all your work. Based on the above diagram: 1. Calculate MPC? 2. If Private Investment increases by 100, calculate the new level of NI. 3. If full-employment NI is at 3000, by how much should Government spending change? 4. What is the new NI, If 1/2 of those government expenditures are financed through taxes?
Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go up when tax rates go down. Why might this be the case?
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Our economics have redone their calculations. They now estimate that citizensin our country have an MPC of 0.60. We can fix the problem by decreasing GDP by 250. How much should we increase taxes?
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