Reference no: EM132813440
GIVEN: Ca = 5,000 mps = 0.1 I = 6,000 G = 4,000
Ta = 1,000 mpt = 0.2 TR = 1,500
1. Derive the equilibrium income for an economy consisting of HH, BF & G does not impose taxes and prove that Y = C + I + G & S = I + G using any approach of your choice.
2. Derive the equilibrium income for an economy consisting of HH, BF & G imposes fixed taxes and prove that Y = C + I + G & S + T = I + G using any approach of your choice.
3. Derive the equilibrium income for an economy consisting of HH, BF & G imposes fixed & behavioral taxes and prove that Y = C + I + G & S + T = I + G using any approach of your choice.
4. Derive the equilibrium income for an economy consisting of HH, BF & G imposes fixed & behavioral taxes but grants transfer payments and prove that Y = C + I + G & S + T = I + G + TR using any approach of your choice.