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A nation-wide study reveals that over one year households use 70% of their after-tax income for the purpose of consumption. It also finds that over that year tax is 20% of the aggregate level of income, the aggregate investment level is $50 million, government expenditure is $10 million, the aggregate export level is $40 million and the aggregate import level is $30 million.
Use the simple circular flow model to calculate equilibrium level of income.
Y = C + I + G + NX = c x (Y - tY) + I + G + NX so Y = (I + G + NX)/(1 - c + ct)
Show how the equilibrium level of income will be affected if the aggregate export level increases by $10 million.
Does the level of income change by a smaller, larger or the same amount as the change in the level of aggregate exports? Explain your answer.
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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Prepare a major handout on the key principles of instructional leadership
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