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The question asked that suppose that the consumption function in a particular economy is given by the following table:
Disposable Income Consumption Expenditure(Billions of Dollars) (Billions of Dollars)400 350500 425600 500700 575800 650
Assuming that no taxes are imposed (and that net exports are zero), what is the equilibrium value of GDP if government expenditures are $50 billion and inteneded investment is $50 billion?
The second question asked to use data from the first question to fill in the blanks. Suppose taxes are 20 percent of GDP.GDP Consumption of Expenditure(Billions of Dollars) (Billions of Dollars)____ 350____ 425____ 500____ 575____ 650
The third question asked to use data from the second question, is the government's budget balanced at the equilibrium level of GDP if government expenditures are $50 billion and intended investment is $50 billion? If not, how big is the surplus or defict?
All Company in the industry have identical cost structures - the industry's total cost has fixed cost of 6000 and constant variable cost of 50.
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