Illustrate what will the effect be on equilibrium output

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Reference no: EM1312042

Q1. They charge $4/lb for every pound you buy thereafter. If your income is still $100/week, draw your budget constraint for the composite good also marigold seeds.

Q2. If the government purchases also taxes are both increased by $100 billion simultaneously illustrate what will the effect be on equilibrium output

Q3. t=0,g=200,c=0.8,also m=0.0.Note the value of equilibrium output. Now decrease g by 50. Illustrate what is the value of equilibrium output? Illustrate what is the implied multiplier?

Reference no: EM1312042

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