What is the equilibrium level of gdp in this economy

Assignment Help Macroeconomics
Reference no: EM13325839

In a closed economy, consumers spend $100 regardless of the level of income, the marginal propensity to consume is .8. Investment is equal to $200. The government spends $500 dollars and collects $150 dollars in taxes. What is the equilibrium level of GDP in this economy?

Reference no: EM13325839

Questions Cloud

What is the length of the incline : A skier is gliding along at 4.3m/s on horizontal, frictionless snow. He suddenly starts down a 10? incline. His speed at the bottom is 10m/s, What is the length of the incline
Explain what is the volume of hcl needed to reach halfway : What is the volume in mL of 0.762 M HCl(aq) needed to reach halfway to the equivalence (stoichiometric) point in the titration of 41.9 mL of 0.457 M N2H4(aq) (Kb = 1.7 x 10-6).
Implement the s-box functionality as a class : Implement the cipher as a class which implements the provided interface.
Use a graph to help explain you answer : A monopolist sets price at $10 and sells 100 units. The corresponding marginal revenue is $5 and the marginal cost is $3. What recommendation regarding price and quantity would you give this monopolist? Use a graph to help explain you answer.
What is the equilibrium level of gdp in this economy : In a closed economy, consumers spend $100 regardless of the level of income, the marginal propensity to consume is .8. Investment is equal to $200. The government spends $500 dollars and collects $150 dollars in taxes.
At what height does the collision occur : ball A is dropped (starting at rest) from the top of a buildingof heighth at the sameinstant that ball B is thrown vertically upward from the ground. At what height does the collision occur
How to calculate the ph of the solution : A buffer is prepared by mixing 295 mL of 0.210 M HCl with 584 mL of 0.559 M ammonia (NH3). Given that the Kb of NH3 is 1.8 x 10-5, calculate the pH of the solution.
Review of the relevant academic and practitioner literature : A literature review of the relevant academic and practitioner literature. Ensure you have at least 5 academic references and 3 practitioner references making a minimum of 8 references in total. (After a brief, indicative literature review, you may ch..
Explain the volume in ml of 0.664 m hcl(aq) : What is the volume in mL of 0.664 M HCl(aq) needed to neutralize the hydroxide ions present in 32.2 mL of 0.851 M NaOH(aq).

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd