Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

In this economy we have an MPC equal to 0.80, Autonomous Consumption of $600 billion, Planned Investment (I) of $1,000 billion, Government Spending (G) of $1,200 billion and Net Taxes (T) of $1,000 billion. e) If this economy had a full employment level of income equal to $8,000 billion, what Macroeconomic condition is this economy experiencing. f) Using the Spending Multiplier, determine the change in G that is needed to get this economy to be in equilibrium at full employment. Please show your work. g) Using the Spending Multiplier, determine the change in T that is needed to get this economy to be in equilibrium at full employment. Please show your work.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91848340

Have any Question?


Related Questions in Business Economics

For the following question i cant understand where the 0086

"For the following question I can't understand where the 0.086 comes from via the t table. Please advise. The average test score of a population is 75. A sample of 9 students are randomly selected. The sample standard de ...

A sample of 1000 us households is taken and the average

A sample of 1,000 U.S. households is taken and the average amount of newspaper garbage or recycling is found to be 27.8 pounds. Assuming the standard deviation of newspaper for garbage or recycling is 2 pounds. Estimate, ...

A national center for health statistics report based on

A National Center for Health Statistics report based on 1985 data states that 30 percent of American adults smoke. Consider a simple random sample of 17 adults. Find the probability that the number of smokers in the samp ...

Suppose that the demand curve for tickets to see a football

Suppose that the demand curve for tickets to see a football team play a game is given by Q = 80,000 - 40P and marginal cost is zero. The team's stadium can host 75,000 fans. i) How many tickets would the team sell if it ...

C 4005timesy - tg215 billion ip50 billion and t10

C = 40+0.5×(Y - T) G=$215 billion, IP=$50 billion and T=$10 billion. Y=C+IP+G What is the equilibrium income level? Suppose that government purchases are reduced by $100 billion. What is the new equilibrium level of inco ...

Looking for some guidance on estimating supply and demand

Looking for some guidance on estimating supply and demand curves. An sample practice problem lists: (demand and supply are in millions) Q(demand)=10-4P Q(supply)=-2+8P How do we plot something like this on a graph to fin ...

Money in a bank account earns 7 simple interest per yeara

Money in a bank account earns 7% simple interest per year. (a) What is the effective rate of interest for the time interval [3,4]? (b) What is the effective rate of discount for the time interval [3,4]?

We live in kapurkua a small island in the mediterranean

We live in Kapurkua, a small island in the mediterranean between Greece and Spain (no, it doesn't really exist so don't look it up in the map). In the island we produce and consume canoes, latreks (a garment that is comf ...

A certain process is known to produce non-conforming items

A certain process is known to produce non-conforming items 20% of the time. A char- acteristic of the units produced by this process are currently being monitored for quality. Samples of size 15 are selected, and each it ...

Youve entered a contract to purchase a new house and the

You've entered a contract to purchase a new house, and the closing is scheduled for next week. It's typical for some last-minute bargaining to occur at the closing table, where sellers often try to tack on extra fees. Yo ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As