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Given: C = 10000 0.9Yd I = 1000 G = 800 T=500 a) Determine the equilibrium level of income using expenditure and injection-leakage approaches (6)
Given: C = 10000 0.9Yd I = 1000 G = 800 T=500 a) Determine the equilibrium level of income using expenditure and injection-leakage approaches (6) b) Calculate the value of the multiplier for this economy (3) c) Calculate the equilibrium level of income when government expenditure falls from 800 to 700 using the expenditure and injection-leakages approaches. (6) d) Discuss the differences between discretionary and non-discretionary fiscal policy
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