Hey tutor,

I was wondering if you were able to solve this whole question for me as I do not know what to do.

It is question 8 a), b) and c) on the lab 4 of ECON 203 Macroeconomics.

Please and thank you.

C Lab4 (Question 3) Lyryx learning Inc , Google Chrome 7 X t servlets/LabSelvlet7ccid=3627 J |aecon1.lyryx.com/stud ......... 'I."I'"" A simple macroeconomic system is described below. Assuming the system follows the aggregate expenditures model. please answer the questions that follow. = C0 + ch C = consumption expenditure 0 = 510 C0 = autonomous consumption expenditure = 0.7 c = marginal propensity to consume (MPC) d = Y - NT Yd = disposable income NT = W NT = net taxes = 0.2 t = tax rate IO = 330 IO = investment expenditure 0 = 570 G0 = government expenditure 0 = 310 X0 = exports IM = IMO + mY IM = imports IMD = 240 IMO = autonomous imports m = 0.35 m = marginal propensity to import (MPM) Y = real GDP/income a) Calculate the equilibrium level of income. Keep as much precision as possible during your calculations. Your final answer should be accurate to the nearest dollar. Equilibrium = $0 b) What is the multiplier for government expenditures? That is, increasing government expenditures by $1 increases the equilibrium level of income by how much? Keep as much precision as possible during your calculations. Your nal answer should be accurate to at least two decimal places. Government Multiplier = 0 c) Suppose that the potential income for this economy is $3,143. What change in government spending would eliminate this gap and bring the economy back to equilibrium? Keep as much precision as possible during your calculations. Your nal answer should be accurate to the nearest dollar. Government Change = $0 omciaITimemas 0 Type here to search