## Calculate the equilibrium levels of national income, Macroeconomics

Assignment Help:

Let a macroeconomic model be of the following form:

C = a + bYD                            a = 10

T = T0                                   b = 4/5

G = G0                                  G0 = 10

I = I0                                   I0 = 10

YD = Y - T0                                     T0 = 10

(a) Calculate the equilibrium levels of national income (Y), consumption (C) and Savings (S).

(b) Graph the above model representing both equilibrium conditions by separate graphs. That is,Y = C + I + G, and Total withdrawals = Total injections by graphing C and C + I functions separately as well as the aggregate expenditure function, C + I + G on the same graph paper.  Similarly, graph the S function by itself and S + T0 on a separate graph paper.  Label all the slopes and intercepts.  Make sure to present schedules.

(c)  If "a" in the consumption function were to increase by 5, G were to increase by 10 T0 were to increase by 10, calculate the separate as well as the total net effect of these changes on Y.

#### Liberalisation of capital account and convertibility issue, Liberalisation ...

Liberalisation of Capital Account and Convertibility Issue: Broadly speaking and irrespective of sector specificity, a liberalised system is one where the role of the governme

#### Diminishing scale output, what is meant by diminishing scale output

what is meant by diminishing scale output

#### International trade, developing countries benefit through international tra...

developing countries benefit through international trade from developed countries

#### Assignment, Can i have a guide on a particular macroeconomics assignment? I...

Can i have a guide on a particular macroeconomics assignment? I have totally no idea on how to start it. Please reply and i will show the question.

#### Nominal vs. Real wage, Do we get paid nominal or real wage?

Do we get paid nominal or real wage?

#### Assumed in constructing a typical production, Which of the following is ass...

Which of the following is assumed in constructing a typical production possibilities curve? a. the economy is engaging in international trade. b. production technology is fix

#### Telemarketer makes six phone calls, A telemarketer makes six phone calls pe...

A telemarketer makes six phone calls per hour and is able to make a sale on 30 percent of these contacts. During the next two hours, find: A) The probability of making exactly four

#### Trade and economic growth, Trade and Economic Growth: For a long time,...

Trade and Economic Growth: For a long time, academic debate on trade liberalization and its positive effects on growth rate remained inconclusive and unsettled. But most recen

#### Economic functions of money, Money is generally considered to have three ec...

Money is generally considered to have three economic functions: A medium of exchange. This is its most significant role. Without money we would live in a barter economy wher

#### Aggregate supply in the long run, In the short run, the discrepancy between...

In the short run, the discrepancy between actual and expected price level causes changes in output and employment. But in the long run, if all other things remain constant, the hig