Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The economy of Macroland has a balanced budget with fixed government expenditures G = 150 and T = 150.
Investment is autonomous: I = 200.
The consumption function is the following: C(Yd) = 250 + 0.75 (Yd).
a) Calculate the equilibrium level of income (Y). Solve for the equilibrium level of consumption.
b) Show how to obtain the equilibrium graphically.
c) The government wants to increase the equilibrium level of output and has several options:
- Increase the government expenditure by 100.
- Decrease the taxes by 100.
- Increase the government expenditure by 100 and increase the taxes by 100 at the same time (in order to keep the budget balanced).
Calculate for each possibility the multiplier and the possible new equilibrium income. Which one would you suggest to the government? Explain your answer.
Goods Market and Factors Market: Goods market is the market where goods are bought and sold for the purpose of consumption Factors markets are the markets
Augmented Saving An alternative way of determining equilibrium GDP is to find the level of income where the sum of desired injections equals the sum of desired leakages. Desi
Some charge that the Crisis of 2008 was caused by the "greed" of Wall Street firms and other bankers. Do you agree with this view? Do you think there was more greed on Wall Street
Q. Explain the problem involved in consumer price Index? To explain the problems involved in calculating CPI we consider MP3 players. If you measure the average price of MP3 pl
why is international trade important to sa
What are economic growth and the growth rate? Economic grow: It rise in a country is real level of national output like measured through Gross Domestic Product (GDP). Wh
The LM curve with inflation We know that LM curve will shift upwards when P increases (presuming MS is constant). This is still true though we can also add that LM curve glid
I''m having trouble understanding the supply curve
Q. Aggregate demand in the IS-LM model? Aggregate demand Aggregate demand depends on Y and R in the IS-LM model As investments depend on R
article summary
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd