Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following economy and use the Keynesian model to answer the succeeding questions. [Tip: Round answers off by two decimals. Final values expressed in

Consider the following economy and use the Keynesian model to answer the succeeding questions. [Tip: Round answers off by two decimals. Final values expressed in millions of Rands]. C = 350mil + 0.85Yd = 175mil = 300mil = 170mil = 120mil T = 0,15Y Yf = R3100 million Equilibrium Income: Y = C + I + G + (X-Z) Disposable Income: Yd = (1-t)Y 4.1 What is the value of the marginal propensity to consume in this model? 4.2 Calculate the multiplier. 4.3. Calculate the equilibrium level of income by hand of the calculated value of the multiplier in (4.2.).4.4 How much does the government collect in taxes when the economy is in equilibrium? 4.5 How will the multiplier and the equilibrium level of income change by including induced imports (m = 0.17)?

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

Global Business Today

Authors: Charles Hill

9th Edition

1259299201, 9781259299209

More Books

Students also viewed these Economics questions

Question

Describe several strategies for relieving stress.

Answered: 1 week ago

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago