User Account

All Pages

Calculate the equilibrium value of income

Assignment Help Business Economics
Reference no: EM132136992

Autonomous consumption = 660

Marginal propensity to consume = 0.8

Autonomous taxation = 200

Income tax rate = 0.2

Planned investment = 500

Government spending = 500

Autonomous net exports = 300

NX = 0.04

  1. Calculate the equilibrium value of income.
  2. Calculate the value of the multiplier.
  3. Calculate the value of total consumption when the economy is in equilibrium.
  4. Illustrate (draw) the consumption function; identifying where savings and dissavings (negative savings) occur. Make sure you clearly labelling every component (ie, autonomous consumption, equilibrium income with values).
  5. State the corresponding savings function (showing the value of autonomous savings and the marginal propensity to save).
  6. Show that leakages are equal to injections (remember to show each stage of your calculation).
  7. Suppose that government spending falls by 150. Calculate by how much the economy will contract as a result; using the multiplier equation.

Reference no: EM132136992

Questions Cloud

What is the probability that more than one customer : What is the probability that more than one customer will arrive during the next 30 minutes?
Raising tariffs and quotas on imports : Recent tariff actions by President Trump include raising tariffs and quotas on imports of both manufactured goods like televisions and automobiles and intermedi
Why would the government impose quotas : Why would the government impose quotas when tariffs not only would reduce imports but also bring in new revenues for the treasury?
What would you say in response to this proposal : If you were an economic adviser to the president and someone made this suggestion, what would you say in response to this proposal?
Calculate the equilibrium value of income : Calculate the equilibrium value of income. Calculate the value of the multiplier.
How many total number of reported crimes : ITECH1103- Big Data and Analytics Assignment Federation University Australia. How many total number of reported crimes
What is the role of local government leadership : What is the role of local government leadership in assuring that departments and divisions work together to achieve municipal goals and objectives?
What is the percent of clear lumber : What is the percent of clear lumber from each of the three suppliers? What is the percent of lumber from each of the three suppliers
What will happen to the price of restaurant meals : If there is a sudden increase in demand for restaurant meals, what will happen to the price of restaurant meals? How will individual firms respond to this?

Reviews

Write a Review

Business Economics Questions & Answers

  Draw indifference curve and budget line diagram

Jon consumes only two goods: coffee and donuts. When the price of coffee falls, he buys the same amount of donuts and more coffee. Draw a indifference curve and Budget line diagram to illustrate Bob's pattern of consumption. What does this tell us ab..

  Evaluate for strength according to criteria for that type

Put the following arguments into standard form for their type and evaluate for strength according to the criteria for that type. Some reconstructions might involve adding premises. One third of the 4,800 species of frog are threatened with extinction..

  What is the condition of macroeconomics equilibrium

According Keynesian’s theory (the government could switch role and become consumers during a recession) Discuses these theory with some example. !? What is the condition of macroeconomics equilibrium and find MPC when Y=1 and MPS=0.25. ?

  Analyze the primary potential benefits of learning

Assess the value of healthcare professionals and decision makers understanding the discipline of health economics. Defend or critique the importance of considering the complex nature of health and healthcare when examining the economic principles rel..

  The economic impact of the baby

The Economic impact of the Baby Boomers on the US economy? prepare a paper and present it in the class by a powerpoint. Please use scholarly references and statistical data to support your argument

  Income and the price index

1. The table below gives Bob's income and the price index for the last 4 years.  Respond to parts a.

  Affects someone else either positively or negatively

One view is that life is one big externality: just about everything someone does affects someone else either positively or negatively. To permit government to deal with externality problems is to permit government to tamper with everything in life. N..

  The company you work for asks you to recommend whether

the company you work for asks you to recommend whether their mercedes truck should be replaced now or kept in service

  What would be the ratio of income of country a

What would be the ratio of income of Country A compared to Country B?

  The change from a budget surplus to a budget deficit

The Federal Government had a budget surplus in 2001 but a budget deficit in 2002. This was due to the recession, the tax cut, and the increased military spending. The change from a budget surplus to a budget deficit was due to:

  Wives continue working ultimately alter the male female wage

Elucidate how would a gradual increase in the percentage of fathers who stay home to care for young children while their wives continue working ultimately alter the male-female wage gap.

  Final jeopardy-relationship between mankind and technology

In "Final Jeopardy" (pp. 234-242), Stephen Baker expresses an interesting look at the way technology, especially in terms of machines, could dramatically change the relationship between mankind and technology—not just helping us to locate information..

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