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Assignment on keynesian algebraic model

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Reference no: EM132422508

Problem: Keynesian Algebraic Model: Assume the following: C=$10+.9(yd) I=$40-10(i) G=90 i=.2(20%), T=$10+.2Y M=$6 +.05Y X=$30

Required:

Question 1: Find Equilibrium Income that corresponds to A.D. = A.S. Show work.

Question 2: Compute, showing all work for: Disposable Income, Consumption, Investment, Saving, Taxes, Imports.

Question 3: Confirm that "Leakage" equals "Injections"

Question 4: What would be the "New Equilibrium Y" if Government spending increased by $10?

Question 5: What would be the "New Equilibrium Y" if the "marginal prosperity to import rose from .05Y to .10Y. Show work.

Reference no: EM132422508

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