A answer the following questions using the aggregate

Assignment Help Macroeconomics

Reference no: EM13372784

(a) Answer the following questions using the aggregate expenditures model of the economy described below.

C = 80 + .6Yd T = 40 + .2Y Ia = 28
Ga = 64
Xa = 76
M = .18Y

i. What are the marginal propensity to consume, the marginal tax rate, and the marginal propensity to import?

ii. What is the saving function? What is the marginal propensity to save?

iii. What is the aggregate expenditure function? What is autonomous expenditure? What is the marginal propensity to withdraw?

iv. What is the equilibrium level of real GDP?

v. What is the size of the multiplier?

vi. Suppose the full employment level of real GDP is $340. Does a recessionary gap or an inflationary gap exist? How can the government eliminate the gap by altering government expenditures?

Reference no: EM13372784

Questions Cloud

You have been hired in the finance department at a large : you have been hired in the finance department at a large metropolitan for-profit hospital. your duties are very

1 a consider a demand curve of the form qd20-2p also : 1. a consider a demand curve of the form qd20-2p. also consider a supply curve of the form qs2p-4. graph both curves

1 in the spring schoolnbsp is sponsoring a concert : 1 in the spring schoolnbsp is sponsoring a concert featuring the band.nbsp the university has determined that the

Suppose that omars marginal utility for cup of coffee is : suppose that omars marginal utility for cup of coffee is constant at 2.5 utils per cup no matter how many cup he

A answer the following questions using the aggregate : a answer the following questions using the aggregate expenditures model of the economy described below. c 80 .6yd t

Consider a perfectly competitive market in long-run : consider a perfectly competitive market in long-run equilibrium where all firms operate under the same cost conditions.

Suppose that omars marginal utility for cup of coffee is : suppose that omars marginal utility for cup of coffee is constant at 2.5 utils per cup no matter how many cup he

1 suppose your companys method of making decisions under : 1. suppose your companys method of making decisions under risk is making the best out of the worst possible outcome.

1 refer to figure to answer this question if new technology : 1. refer to figure to answer this question. if new technology increased the output of guns by 50 percent how many guns

User Account

All Pages