Question

Given C = a + bYd, Yd = hY, I = Io, G =Go, X =Xo,and...

Given C = a + bYd, Yd = hY, I = Io, G =Go, X =Xo,and M=mY, derive and expression for equilibrium income and the multiplier. Is this the simple multiplier or the multiplier? (10 pts)

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Given C = a + bYd, Yd = hY, I = Io, G =Go, X =Xo,and...
Given C = a + bYd, Yd = hY, I = Io, G =Go, X =Xo,and M=mY, derive and expression for equilibrium income and the multiplier. Is this the simple multiplier or the multiplier?
Given C = a + bYd, Yd = hY, I = Io, G =Go, X =Xo,...
Given C = a + bYd, Yd = hY, I = Io, G =Go, X =Xo, and M=mY, derive and expression for equilibrium income and the multiplier. Is this the simple multiplier or the multiplier?  
Given the National income for Zambia in 2019 as Y=C+I, C=Co+bYd, T=To+tY, Yd=Y-T where I=Io=30, Co=85,...
Given the National income for Zambia in 2019 as Y=C+I, C=Co+bYd, T=To+tY, Yd=Y-T where I=Io=30, Co=85, b=0.75, t=0.2 and To=20. Find: (a) The equilibrium level of Income (Ye). (b) The numerical value of Ye. (c) The effect on the multiplier if a proportional income tax (t) is incorporated into the model. .
C = 100 + 0.8 Yd I = 500        X = 600         M = 650 G...
C = 100 + 0.8 Yd I = 500        X = 600         M = 650 G = G0 - 0.05Y G0 = 557.5 T = T0 + .25Y What T0 would make income equal to the same value as in Question 1? (Hint: T0 could be negative) Q1 = T=400 If Investment falls from 500 to 499, what is change in Y? (ie what is investment multiplier?)
The US economy is represented by the following equations: Z=C+I+G, C=300+.5YD, YD =Y T T =400,...
The US economy is represented by the following equations: Z=C+I+G, C=300+.5YD, YD =Y T T =400, I =250, G=1000 Given the above variables, calculate the equilibrium level of output. Now assume that consumer confidence increases causing a rise in autonomous consumption (c0) from 300 to 500. What is the new equilibrium level of output? How much does income change as a result of this event? What is the multiplier for this economy?
The following equations describe your economy: Y  = C + I + G C = ? +cYD...
The following equations describe your economy: Y  = C + I + G C = ? +cYD YD = Y + TR – TA I = ? G = G(bar) TA = tY TR = TR(bar) – rY (NOTE:  ?, TR(bar)= C-Bar, TR-BAR) (The bar across the top variables indicates its autonomous) (Also, ‘t’ is a proportional tax on income, and governs the inverse relationship between transfers and income) a) Derive an expression for equilibrium output. b) Discuss the concept of automatic...
4.Consider the following IS-LM model: C = 200+0.5 YD I = 150+0.25Y-1000i G=250 T=200 (M/P)d =...
4.Consider the following IS-LM model: C = 200+0.5 YD I = 150+0.25Y-1000i G=250 T=200 (M/P)d = 2Y-8000i M/P=1600 a. Derive the IS relation b. Derive the LM relation c. Solve for the equilibrium real output. d. Solve for the equilibrium interest rate.
The following equations describe your economy: Y = C + I + G C = c(bar)...
The following equations describe your economy: Y = C + I + G C = c(bar) +cYD YD = Y + TR – TA I = I(bar) G = G(bar) TA = tY TR = TR(bar) – rY (NOTE: c(bar), I(bar), TR(bar)= C-Bar, I-bar TR-BAR ---- The bar across the top variables indicates its autonomous) (Also, ‘t’ is a proportional tax on income, and governs the inverse relationship between transfers and income) a) Suppose that the government adopts a proposal...
Given: C = 200+ .75(Yd), initial equilibrium = $6000, the target full-employment equilibrium = $9000. a....
Given: C = 200+ .75(Yd), initial equilibrium = $6000, the target full-employment equilibrium = $9000. a. Calculate the spending multiplier. Calculate the tax multiplier. b. If G increases by $10, calculate the CHANGE in equilibrium. Y. c. If T increases by $10, calculate the CHANGE in equilibrium Y. d. If G increases by $10 AND T increases by $10, AT THE SAME TIME, calculate the change in equilibrium Y. e. Starting from the initial equilibrium of $6000, by how much...
3. Now add the foreign sector to the model so that Y = C + I...
3. Now add the foreign sector to the model so that Y = C + I + G + [ X - M ] where the new variables are: X = Xa = 40, and M = Ma + mY = 5 + 0.11Y. The other variables remain the same as in question 2. Solve for the new equilibrium level of national income. Calculate the size of the i) New multiplier ii) Trade balance iii) Budget balance Please see my...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT