What is the multiplier for government spending

Reference no: EM13218230

Consider a closed economy to which the Keynesian cross analysis applies. Consumption is given by the equation C=200+2/3(Y-T). Planned investment is 300, as are government spending and taxes. If Y is 1,500 what is planned spending? What is inventory accumulation or decumulation? Should equilibrium Y be higher or lower than 1,500? What is equilibrium Y? What are equilibrium consumption, private saving, public saving, and national saving? How much does equilibrium income decrease when G is reduced to 200? What is the multiplier for government spending?

Reference no: EM13218230

Questions Cloud

Compare the impact of the ax cut on income and interest rate : Two identicial countries Alpha and Beta can be described by the IS-LM model in the short run. The governments of both countries cut taxes by the same amount. The Central Bank of Alpha follows a policy of holding a constant money supply.

How many washing machines the company should produce : How many Vacuum cleaners and how many Washing machines the company should produce in next month in order to achieve the maximum profit?

Determine what digits each colour band represents : Using many resistors and the DMM, try to determine what digits each colour band represents. Briefly explain your method and your findings in the space below.

Issues or challenges between the middle ages : identify five issues or challenges between the middle ages and the french revolution that will shed light on a contemporary problem faced by society today.

What is the multiplier for government spending : What is equilibrium Y What are equilibrium consumption, private saving, public saving, and national saving How much does equilibrium income decrease when G is reduced to 200 What is the multiplier for government spending

Appropriate fiscal policy : If the economy is at potential output, and consumption spending suddenly decreases due to a fall in consumer confidence, the appropriate fiscal policy is?

Draw the symbol and truth table of it : For the given circuit, determine the function of it I.e. is it OR gate? Or AND gate,.. Show all your answer, also draw the symbol and truth table of it.

Create a cron file that will regularly perform : Perform a level 0 backup once per month, performs a level 2 dump one day per week, and performs a level 5 dump everyday that neither a level 0 nor a level 2 dum id performed.

Calculate the first two energy levels : A one-dimensional infinite potential well with a width of 12 Ao contains an electron. (a) Calculate the first two energy levels that the electron may occupy. (b) If an electron drops from the second energy level to the first, what is the wavelengt..

User Account

All Pages