Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer the following questions all,must be correct: 1)Match the information below correctly Given the following equations, calculate the fiscal policy multiplier and interprate it. C=100

Answer the following questions all,must be correct:

1)Match the information below correctly

image text in transcribedimage text in transcribedimage text in transcribed
Given the following equations, calculate the fiscal policy multiplier and interprate it. C=100 + 0.8Y' (Consumption function) 51 1= 10 - 10r (Investment function) L = Y-100r (Real money demand) G = 10 (Government purchases) T = 0.25 (Tax rate) M = 295 (Real money supply)Match - I Match- II A. IS curve shows 1. goods market equilibrium. B. LM curve shows 2. money market equilibrium. C. IS curve shifts to the right 3. when autonomous expenditure increases. D. IS curve shifts to the left 4. when autonomous expenditure decreases.Problem 2: The following equations describe an economy C = 100 + 0.75Ya I= 50 -25r T = G = 50 Where C is aggregate consumption, Y is disposable income, / is nygreente investment 7 is taxes, G is government purchases and / is the rate of interest. Derive the 15 curve for the economy

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

The Routledge To Global Political Economy Conversations And Inquiries

Authors: Ernesto Vivares

1st Edition

1351064525, 9781351064521

More Books

Students also viewed these Economics questions

Question

2. What do the others in the network want to achieve?

Answered: 1 week ago

Question

1. What do I want to achieve?

Answered: 1 week ago