Calculate the new equilibrium level of income

Assignment Help Microeconomics
Reference no: EM133552471

Question: Assume in a private economy that the equilibrium level of income is $420 and the MPS is 0.25. Now suppose government collects taxes of $75 and spends the entire amount. Calculate the new equilibrium level of income.

Reference no: EM133552471

Questions Cloud

Differing cultural norms and even food ingredients : Differing cultural norms and even food ingredients? What other areas of operations must they plan for to operate smoothly
How the policy responds to or resolves the social problem : Explain how the policy responds to or resolves the social problem, taking into consideration the social work values as stated in the NASW Code of Ethics.
How did the views of your family members differ across : ???Does the level of disapproval you anticipate (or have experienced) depend on which group is considered? ???How did the views of your family members differ
What impact are home brands products from coles : What impact are home brands' products from Coles and Woolworths likely to have on future competition?
Calculate the new equilibrium level of income : Now suppose government collects taxes of $75 and spends the entire amount. Calculate the new equilibrium level of income
What is a psychoanalytic-existential : What is a Psychoanalytic, Existential, Edge view of death? In terms of death responses, what is selective attention, selective response, compartmentalizing.
What important new information did you learn : What are your own experiences with the topic(s) covered in the podcast - What important new information did you learn from this podcast
What are at least three potential ethical issues for sam : What are at least three potential ethical issues for Sam? When writing your response, consider his obligations to the various parties involved.
Aspect of the material that are more relevant in terms : Aspect of the material that are more relevant in terms of of the modeling of the firm. Input markets (capital-labor) or drivers of growth for you and

Reviews

Write a Review

Microeconomics Questions & Answers

  Identical firms in a market belong to a cartel

If all n identical firms in a market belong to a cartel, how much total output will be produced relative to the monopoly output, and how much will each firm produce?

  The forecasting staff for prizer corporation has developed

the forecasting staff for the prizer corporation has developed a model to predict sales of its air-cushioned-ride

  Which type of economic evaluation propose to use

The Mayer of UMBC concerns about the increasing trend of Type 2 Diabetes in the town. He is thinking about targeting pre-diabetes people and providing.

  Production of tablets is capital-intensive-labor-intensive

Suppose the U.S. and Mexico both produce 2 goods, tablets and cereal, using 2 inputs, capital (K) and labor (L). The production of tablets is capital-intensive, and that of cereal is labor-intensive. The U.S. is a capital-abundant country, and Mexico..

  What is the total tax revenue

Suppose that the tax (Ti) paid by individual i is the following function of his or her income (Xi): Ti = 0.1(Xi - 2000) = 0.1Xi - 200.

  How might you build a social medial campaign to promote

How might you build a social medial campaign to promote this brand - How Sriracha Became a Hot Product

  Explain how franchising signals quality

Explain how franchising signals quality.

  How do changes in supply or price affect this equilibrium

How do changes in supply or price affect this equilibrium and Please be sure to validate opinions and ideas with citations and references in APA Format

  Demand or supply of gasoline

The demand for energy in the United States is often stated as persistently non-cyclical and not sensitive to both prices effects. Given such characteristics, explain the effect of each of the following on the demand or supply for gasoline.

  Analyze the economics of new orleans

Analyze the economics of New Orleans in light of the above parameters and develop your own Cost-Benefit Analysis (CBA) for rebuilding.

  What are the individuals budget constraints

What are the individual's budget constraints in periods 1 and 2 and the new lifetime budget constraint and solve for the optimal consumption in both periods.

  What effect would they ?nd from openness

GDP = 0.2 x Financial Sector Reform + 0.4 x Capital Stock - 0.05 Openness But that Financial Sector Reform = 2 x Openness , If an econometrician ran a regression of GDP on the capital stock and openness, what effect would they ?nd from openness?

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