User Account

All Pages

Calculate the equilibrium level of income or real gdp

Assignment Help Macroeconomics
Reference no: EM131326243

Assume that the consumption schedule for a private open economy is such that consumption C = 20 + 0.80Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 40, G =20 and Xn = 10. Recall also that, in equilibrium, the real output produced (Y) is equal to aggregate expenditures: Y = C + Ig + G+ Xn.

a. Calculate the equilibrium level of income or real GDP for this economy.

b. What happens to equilibrium Y if G changes to 20? What does this outcome reveal about the size of the multiplier? What does this outcome reveal about the impact of fiscal policy?

Reference no: EM131326243

Questions Cloud

Calculate the equilibrium level of income or real gdp : a. Calculate the equilibrium level of income or real GDP for this economy. b. What happens to equilibrium Y if G changes to 20? What does this outcome reveal about the size of the multiplier? What does this outcome reveal about the impact of..
Discusses the factors and their effect on health care usage : Write a 350- to 700-word paper that discusses the factors and their effect on health care usage. Address the following in your paper: Identify one or two health factors that influence the usage of health care.
Explaining the process of handling the incident : Write a 2- to 3-page paper that addresses the problem with management structure, and explaining the process of handling the incident
How audience can influence the messaging for a presentation : The most effective presentations are customized to the intended audience. Consider how audience can influence the messaging for a presentation topic.
Calculate the equilibrium level of income or real gdp : a. Calculate the equilibrium level of income or real GDP for this economy. b. What happens to equilibrium Y if G changes to 20? What does this outcome reveal about the size of the multiplier? What does this outcome reveal about the impact of..
Threats related to operating systems and networks : Prepare a 3- to 4-page report for the top management explaining: Risk and exposures associated with conducting transactions over the Internet and Threats related to operating systems and networks
Analyze the bilateral transaction versus a market auction : Analyze the bilateral transaction versus a market auction for the three-bus system.- Was the Green Load's decision good for the Hydro Generator?
Is the ppaca legislation an improvement to our system : Is the PPACA legislation an improvement or a liability to our health care delivery system?" Use examples to illustrate your points and include pros and cons of the changes.
Aggregate demand-aggregate supply analysis : Using aggregate demand-aggregate supply analysis, explain the impact of an increase in consumer credit on the equilibrium price level and equilibrium real income in the short-run.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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