User Account

All Pages

What is the equilibrium output level

Assignment Help Microeconomics
Reference no: EM13945870

a) What is the consumption function? Assume that it takes the standard form (C = a + b YD).

b) Fill in the table above.

c) What is the equilibrium output level?

d) If the current output level is 15,000, what would likely happen to the output level next year? Why?

e) By how much will the equilibrium output level increase (decrease) if the planned investment falls by 500?

f) By how much will the equilibrium output level increase (decrease)if the tax (T) decreases by 400?

g) By how much will the equilibrium output level increase (decrease) if the government spending (G) decrease by 800?

h) By how much will the equilibrium output level increase (decrease) if the government spending (G) decrease by 300 and at the same time, the government cuts taxes by the same amount of 300?

Income (Y)

Net Tax (T)

Disposable Income (YD)

Consumption (C)

Saving (S)

Investment (I)

Gov. Spending (G)

TE

10,000

1,000

1,300

2,000

1,500

12,000

1,000

1,700

2,000

1,500

13,000

1,000


2,000

1,500

15,000

1,000


2,000

1,500

16,000

1,000


2,000

1,500

18,000

1,000


2,000

1,500

20,000

1,000

Reference no: EM13945870

Questions Cloud

What was the unemployment rate in april : In June there are 30,000 people classified as unemployed and the size of the labor force is 600,000. The only change between June and July is that 10,000 people give up looking for work. Compute unemployment rate in July.
What information do users need about current assets : What information do users need about current assets? What is meant by FIFO, LIFO and the average cost method of pricing issues of goods? How is a provision for doubtful debts decided upon?
What is the terminal velocity : 1. Find the numerical solution using two MATLAB ode solvers, ode45 and ode23. Use an anonymous function as the input function for your ode solvers. 2. On the same graph (can do a subplot), plot velocity versus time for each ode solver, and label th..
Why is there a need for different wireless technologies : Explain the application and features of one of the following: Wi-Fi®, WiMax, ZigBee?, or Bluetooth®
What is the equilibrium output level : By how much will the equilibrium output level increase (decrease)if the tax (T) decreases by 400? By how much will the equilibrium output level increase (decrease) if the government spending (G) decrease by 800?
How to read and understand statement of financial position : Explain to a non-accountant how to read and understand the statement of financial position (balance sheet) and income statement (profit and loss account) you have prepared.
Which responds to a get nearest server request from a client : Your company has a network that contains several NetWare 4.11 servers and uses IPX as the routing protocol. Each of the network segments has at least one NetWare server on it
Calculate the equilibrium level of output in closed economy : Calculate the multiplier for closed economy case. Calculate the multiplier for open economycase. Explain why the multipliers are different in two cases (I need an intuitive explanation)
List the five steps of ethical decision making : List the five steps of ethical decision making. What harm can come to a patient's family if the medical professionals are incorrect about their assessment of abuse

Reviews

Write a Review

Microeconomics Questions & Answers

  Part-11 describe the industry and explain the general

part-11. describe the industry and explain the general pattern of change of the particular market model.2. hypothesize

  What are key concepts of location in terms of business

What are key concepts of location in terms of business?

  Draw a production possibilities frontier and label points

Draw a production possibilities frontier and label points as inefficient, efficient, feasible, or infeasible, and display a change in resources or technology.

  Formulate a hypothetical problem and analyze or show how

formulate a hypothetical problem and analyze or show how you would solve the five economic tools from your textbook. be

  Increase in the homicide rate can be attributed

If the elasticity of crime with respect to the number of police is estimated to be -0.5 and the number of police fell by 5% and, over that same time period, homicide rates increased by 20% then

  Ia what is gross domestic product gdp and what is the use

i.a. what is gross domestic product gdp and what is the use of it?b. comment on how well this measure serves its

  Real estate development

Can you also describe the logic of how you approach this question? how were you able to understand the information.Assuming that the developer is risk neutral, what is the maximum cost of the impact study such that it is still worthwhile for the deve..

  Calculate the monopolists profit

Calculate the monopolist's profit.

  Slope of equation

In forecasting, MacDonald's Wing® discovered that when it opened its store to the public, it was able to sell 5,000 parachutes in the first year. Given the equation; y=a+bx. Where ‘y' represents the number of sales and ‘a' is the number they start..

  Assess both the long-term and short-term costs

Conduct a cost-benefit analysis of obtaining a graduate degree. Assess both the long-term and short-term costs and benefits to decide why some people pursue extra education while others do not.

  Write the difference between real exchange rate and nominal

a. explain the difference between the real exchange rate and the nominal exchange rate.b. if a japanese car costs

  Describe the issues that were important in the 2004

Describe the issues that were important in the 2004, 2008 and 2012 elections, but analyze whether or not there were differences in the way that the candidates campaigned and in the American electorate.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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