What is the equilibrium level of income for this economy if Y = C + I + G + X - M ? a. 581.82b. 581.76c. 483.71d. 483.53 What the size of the import multiplier for this economy? a. 3.03b. 3.05c. 3.07d. 3.09 Fiscal PolicyInitial Consumption at Zero DisposableIncome (b) = 75Marginal Propensity to Consume (c) = .75Level of Taxes if Y = 0 (s) = 25%3DInvestment (I0) = 20%3DGovernment Expenditures (G) = 30%3DMarginal Propensity to Tax (t) = .25Trade Policy1. Y= C +1+ G +X – M2.C = b + cYd (Consumption function)3. T=s+ tY (tax function)4.M = n + mY (import function)5. Yd = Y - T (disposable income)C = 100 + .90 Yd7.6.T= 40 + .20Y8.M = 10 + .05Y9.|= 38 G = 7510 X= 25

The Keynesian model would result in the equilibrium of output when the output equals the aggregate…

What is the equilibrium level of income for this economy if Y = C + I + G + X - M ? a. 581.82 b. 581.76 c. 483.71 d. 483.53 What the size of the import multiplier for this economy? a. 3.03 b. 3.05 c. 3.07 d. 3.09

What is the equilibrium level of income for this economy if Y = C + I + G + X - M ? a. 581.82 b. 581.76 c. 483.71 d. 483.53 What the size of the import multiplier for this economy? a. 3.03 b. 3.05 c. 3.07 d. 3.09

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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