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Suppose you are developing a Keynesian Cross Model with the following information: C = 220+(0.75(Y-T), Planned...

Suppose you are developing a Keynesian Cross Model with the following information:

C = 220+(0.75(Y-T), Planned Investment I = 500, G = T= 500

a.

Please find out the equilibrium income.

b.

Please find out what is the consumption at the equilibrium level.

c.

Please graph the Keynesian Model to locate the equilibrium between the income and

expenditure.

d.

What level of government purchase is required to achieve an income level of $ 3700?

e.

What is the mpc for the planned expenditure curve? (or this economy)

f.

Instead of increasing the government purchase, if the government likes to change the tax,

what level of taxes is required to see the economy’s income at 3700?

g.

What is the tax multiplier for this economy

Suppose you are developing a Keynesian Cross Model with the following information:

C = 220+(0.75(Y-T), Planned Investment I = 500, G = T= 500

a.

Please find out the equilibrium income.

b.

Please find out what is the consumption at the equilibrium level.

c.

Please graph the Keynesian Model to locate the equilibrium between the income and

expenditure.

d.

What level of government purchase is required to achieve an income level of $ 3700?

e.

What is the mpc for the planned expenditure curve? (or this economy)

f.

Instead of increasing the government purchase, if the government likes to change the tax,

what level of taxes is required to see the economy’s income at 3700?

g.

What is the tax multiplier for this economy

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