Calculate the change in income

Reference no: EM131459690

Question:

C= 50+0.8Yd
I=70
G=200
TR=100
t= 0.2Y

Where C is consumption expenditure, Yd is disposable income, I is investment expenditure, G is government expenditure, TR is transfer payments, t is the tax rate and Y is income

a) Calculate the following:

(i) Level of income)

(ii) Level of consumption

(iii) Amount of taxes collected

(iv) The government budget deficit or surplus

(v) Amount of private savings

(vi) Amount of public savings)

(vii) Amount of national savings

(viii) The government expenditure multiplier

(ix) Calculate the change in income if government spending increases by 10.

(x) The transfer payment multiplier

(xi) The change in income if transfer payments are reduced by 10

b) Why is there a difference between the government expenditure multiplier and transfer payment multiplier?

Reference no: EM131459690

Questions Cloud

What was discussed during the given seminar : Listen to the Seminar recording and write a 1-page summary of what was discussed during the Seminar.

Complete a balance sheet-profit and loss statement : Complete a balance sheet, profit and loss statement (statement of operations), and cash flow statement (statement of changes in net assets)

What is the task-objective budgeting method : What is the task-objective budgeting method? Describe its two steps. The task-objective method develops a promotional budget based on an evaluation of the firm.

What is the direct sales results test : What is the direct sales results test? The direct sales results test reveals the specific impact on sales revenues for each dollar of promotional spending.

Calculate the change in income : Calculate the change in income if government spending increases by 10 - Why is there a difference between the government expenditure multiplier and transfer payment multiplier?

Write about german history paper : Then relate these general characteristics of Expressionism to the formal characteristics of Wiene's film and to the film's socio-political "message."

Develop flight schedule application for fly-by-night airline : You have been asked to develop a Flight Scheduling application for the Fly-By-Night Airline. The Airline has one or more flights per day but are not by time.

Compare the consumer surplus : What is the lowest that the firm will charge and how many units will the firm sell?

How would you suggest monitoring and stabilizing : What is the anticipated need for change based on the happy hour scenario - How would you, as the OD consultant, approach the employees and management to build a relationship?

User Account

All Pages