Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Aaccording to the above table. Please help me to answer the following. The table is that way. 60 MARKS Make use of the information on

Aaccording to the above table. Please help me to answer the following. The table is that way.

image text in transcribed
60 MARKS Make use of the information on the four-sector Keynesian expenditure model given in the diagram and table and answer Questions below: R C+I+G M C+I C D B H 800 A The following information is related to the Kbove diagrata Consumption expenditure by households R150 million when they earn no income Capital formation by firms R150 million Government expenditure R400 million Personal income tax rate 20% Exports R200 million Imports R100 million 7. What is the value of the multiplier in the two-sector model (before government)? 8. What is the slope of the C+I line? 9 What is the value of investment at point F? 10 What is the value of income at point F? 11. What is the value of savings for equilibrium in the two-sector model? 12. What is the value of consumption expenditure at point F? 13. What is the value of the multiplier in the three-sector model? 14. What is the value of total autonomous expenditure in the four-sector model? 15. What is the value of income at point L? 16. What is the impact of the inclusion of the government sector in the 3-sector model? R200 million increase in income R300 million increase in income R1750 million increase in income R250 million increase in income Impossible to determine

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Econometrics With Economic Applications

Authors: Dennis Halcoussis

1st Edition

0030348064, 9780030348068

More Books

Students also viewed these Economics questions