Highest also lowest payments from the writer

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Reference no: EM1312188

Q1. For this hypothetical economy the current equilibrium level of output/income is £100 billion made up of Consumption £80 billion, savings £5 billion, taxation £5 billion also imports £10 billion. If the government decides to increase its expenditure by £10 billion Illustrate what will be the new equilibrium level of output/income.

Q2. Illustrate what are the highest also lowest payments from the writer that the beekeeper farmer team will accept for the sixth day? Assuming that the farmer can dispose of $7 from the writer as she wishes, Illustrate what range of payments will the beekeeper accept? Assuming that the beekeeper gets that amount, Illustrate what range of payments will the farmer accept? (Remember that negative payments are also possible.) Answer the same questions for the fifth day.

Reference no: EM1312188

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