Simple macro model, Managerial Economics

Assignment Help:

Using the same simple macro model we developed in Module 2:

a.  Show what will happen to national income (GDP) if the administration implements another $100 (billion) stimulus spending package.

b. Show what would happen if instead of a government spending package, the administration implemented a $100 tax cut.

c.  From your results, find the numerical values of the derivatives dY/dG  and dY/dT.   (Hint: Numerically, dY  is just the new value of  Y  less the old value and dG  is the new value of government spending less the old one.  Find the ratios of those numbers and you have found the value of the derivative.) Which policy has the largest effect and why?


Related Discussions:- Simple macro model

Kinds of bargaining arrangements, Kinds of Bargaining arrangements Bas...

Kinds of Bargaining arrangements Basically there are three kinds of bargaining arrangements, namely: Open Shop: In an open shop a union represents its members, but doe

International commodity agreements, International Commodity Agreements (ICA...

International Commodity Agreements (ICAS) International Commodity Agreements (ICAS) represents attempts to modify the operation of the commodity markets so as to achieve vario

The acceleration principle, THE ACCELERATION PRINCIPLE Suppose that th...

THE ACCELERATION PRINCIPLE Suppose that there is a given ratio between the level of output Y t at any time t , and the capital stock required to produce it K t and that

Effects of fluctuations in exchange rates, Effects of Fluctuations in Excha...

Effects of Fluctuations in Exchange Rates When a country's currency depreciates, exporting firms may have competitive advantage but businesses which rely on imports for raw ma

With aid of evidence in the given article , with the of evidence comprehens...

with the of evidence comprehensively discuss the market structure in the south African mobile telecommunications industry

Essay, Help with writing papers and analysis for case "The Ready-To-Eat Bre...

Help with writing papers and analysis for case "The Ready-To-Eat Breakfast Cereal Industry" in 1994

Electron control inc, electron control,inc.,cells voltage regulators to oth...

electron control,inc.,cells voltage regulators to other manufacturers , who then customize and distribute the products to quality assurance labs for their sensitive test equipment.

Decision tree construction of a fast food outlet, construct a decision tree...

construct a decision tree for the baked potatoes outlet using sales per day, number of days that quantity is sold together with selling prices per unit and average costs

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd