Determine the value of the goverment expenditure multiplier, Macroeconomics

Assignment Help:

Assume that the economy is characterized by the following structural equations:

C = 160 + 0.6 (4 - T)

I = 150; G = 150; T = 100.

a) Determine the equilibrium output level.18

b) If G increases to 200, what is the how equilibrium level of output? What is the value of the govt. expenditure multiplier?

c) If tax down to 50, by how much will equilibrium output increase? What is the value of tax multiplier?

Related Discussions:- Determine the value of the goverment expenditure multiplier

Serve on an environmental policy, Suppose you serve on an environmental pol...

Suppose you serve on an environmental policy planning board for the federal government. Your task is to propose a policy initiative aimed at reducing urban air pollution, using the

Production possibilities curve, Using a production possibilities curve, an ...

Using a production possibilities curve, an economy that produces an output combination less than the maximum possible is depicted by a point located. a. at the top corner of the

Large department store, Suppose in a large department store, the average nu...

Suppose in a large department store, the average number of shoppers is 448, with a standard deviation of 21 shoppers. We are interested in the probability that a random sample of 4

Aggregate demand and aggregate supply, Find one or more articles in the wal...

Find one or more articles in the wall street Journal or other business publications that describe changes in fiscal or monetary policies in the United States. Discuss how these pol

Explain different levels of a hypothetic, Suppose that a public park is vis...

Suppose that a public park is visited by people living in five concentric zones around the park. Each zone has a population of 5000, and the total travel cost for a visit to the pa

Why protective coating might fall in vivo, An electronic chip is to be impl...

An electronic chip is to be implanted in the body. During in vitro (in the lab) testing it is observed that the chip will dissolve over time if exposed to liquid with similar pH to

As-ad model, full overview as-ad model

full overview as-ad model

Quality of healthcare, Explain how changes in the quality of healthcare wil...

Explain how changes in the quality of healthcare will influence the demand for care.

Importance of macroeconomics models, Importance of macroeconomics models ...

Importance of macroeconomics models Using the models we can, for example, analyze what happens when the government increases consumption, when the central bank increases the tar

Monopoly model, Use the monopoly model to explain how providers are able to...

Use the monopoly model to explain how providers are able to charge different groups of patients different prices.

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages