Reference no: EM13975361
On the planet Omicron Persei 8, government spending is $1000, net taxes are $1200, and planned investment is $1400. Consumers spend according to the equation C = 100 + 0.8Yd, where Yd represents disposable income. Given this information, fill out the table below to determine which of the output levels represents a macroeconomic equilibrium then answer the questions that follow.
.png)
a. Which level of output is a macroeconomic equilibrium?
b. Is the government budget balanced, in deficit, or in surplus, and by how much?
c. Find the marginal propensity to consume, and the marginal propensity to save.
d. Find the government spending multiplier. If the government wanted to increase the equilibrium level of income by $1,000, by how much would it have to increase government purchases?
e. Find the tax multiplier. If net taxes were lowered by $100, what affect would it have on the equilibrium level of income? Give a specific numerical answer.
|
Overall graduation rate for football players
: 1. It has been reported that the overall graduation rate for football players at Division I-A colleges and universi- ties is 65%. Source: "How Football Rates," USA Today, December 20, 2005, p. 12C.
|
|
Population of vermont
: According to the National Marine Manufacturers Association, 50.0% of the population of Vermont were boating participants during the most recent year. For a randomly selected sample of 20 Vermont residents, with the discrete random variable x 5 the..
|
|
What is the magnitude of the average induced emf
: A flexible wire loop has a radius of r = 18.6 cm and it is inside a uniform magnetic field of B = 0.208 T. The loop is grasped at points P and Q and stretched until its area is zero. It takes 211 ms to close the loop. What is the magnitude of the ..
|
|
Evaluate the speed of service at five local
: The regional manager in Exercise 6.10 plans to evaluate the speed of service at five local franchises of the restaurant. For the five servers, determine the probability that
|
|
Which level of output is a macroeconomic equilibrium
: Find the tax multiplier. If net taxes were lowered by $100, what affect would it have on the equilibrium level of income? Give a specific numerical answer.
|
|
Company management with recommendation
: Company executives have a sub- jective probability of 0.3 that the industry will not grow at all, a probability of 0.5 that it will grow moderately, and a probability of 0.2 that it will show a high rate of growth. The company's estimated profits ..
|
|
What is the wavelength of the ultrasound in air
: In flight bats emit a range of (ultrasonic) frequencies of sound and use the reflected sound signals for locating the insects they eat. A typical frequency is 45,000 Hz, and the speed of the ultrasound in air is about 344 m/sec. What is the wavele..
|
|
Find and classify all mins and maxs of the function
: find and classify all mins and maxs of the function f(x,y) = 6 + x3 - 3xy + y3 on the region given by -3 ≤ x ≤ 3 and -3 ≤ y ≤ 3. Remember to check the boundaries.
|
|
Riverside expected profit
: If Laura purchases the flood insurance, what will be Riverside's expected profit next year? Given the results in parts (a) and (b), provide Laura with a recommendation.
|