With the help of an IS-LM diagram, explain the effects of an expected future tax increase on current output, the current interest rate, current aggregate spending.(It’s be better to explain with diagram, thank you!) Consider an IS-LM model where aggregate private spending depends on currentvariables as well as their expected values in the future period. Assume thatexpected current inflation and future inflation are equal to zero.

A macroeconomic model called the IS-LM connects an economy's short-term production level to interest…

With the help of an IS-LM diagram, explain the effects of an expected future tax increase on current output, the current interest rate, current aggregate spending. (It’s be better to explain with diagram, thank you!)

With the help of an IS-LM diagram, explain the effects of an expected future tax increase on current output, the current interest rate, current aggregate spending. (It’s be better to explain with diagram, thank you!)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider an IS-LM model where aggregate private spending depends on current
variables as well as their expected values in the future period. Assume that
expected current inflation and future inflation are equal to zero.

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of The economy of Langoria is currently in a state of long-run equilibrium in which the economy is producing at its Natural Real GDP. The level of Real GDP is currently 3 trillion dollars, and the price level is 130. 100 PRICE LEVEL 170 160 150 140 130 120 110 100 2 Changes in a Self-Regulating Economy AD AD₂ BRAS 1 2 3 LRAS 23
AS1 110 A 100 AD2 AD1 900 960 1100 Real GDP FIGURE 23-5 Refer to Figure 23-5. Suppose that an increase in government purchases by 40 causes the AD curve to shift to the right, as shown. The simple multiplier is and the multiplier is 5; 1.5 4; 1.2 4; 1.5 O 4; 2.8 O 5; 1.2 Price Level
(b) With the help of an IS-LM diagram, explain the effects of an expected future tax increase on current output, the current interest rate, current aggregate spending. (It’d be better to explain it with diagram, thank you!)
I need help soon as possible
True or false? Why?"A temporary tax rise never has a significant effect on current consumption."
Suppose that the following C, I, G, and NX is given by: C = 100 + 0.8OY G = 100 | = 200 NX = 300 - 0.05Y And suppose also that this leads to an AD & AS given by: AD: Y = 10,000 - 3p AS: Y = 2p In short-run (AD = AS) equilibrium, what is the National Savings Supplied (NS)?
q14
5
Imagine an economy in which the slope of the AD curve is equal to the (negative of) slope of the AS curve. If the simple multiplier is equal to 5, what is the value of the multiplier when the price level varies? Give the number and explain how you figured it out. im really confused with this question especially since my textbook didn't help at all
Only typed answer
This will be a graph shifting question, which asks about the intuition of both the AD-AS figures and the l-NS figures, specifically relating them to long-term growth. 1. When we consider the equation for National Savings (NS), would an increase in Real GDP lead to an increase, decrease, or no change in the quantity of National Savings supplied? Explain your answer.
Suppose that you have an AEF at a price level of p = $100 given by: AEF = 1,200+ 0.40Y Suppose also that for every $1 increase in the price level, desired consumtion decreases by $1. Given this, what is the slope of Aggregate Demand (AD) in the AD-AS model? Note: round your answers to three decimal places.