Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how do we calculate the level of autonomous spending and the multiplier Autonomous Consumption = 465 Marginal propensity to consume = 0.6 Autonomous Investment =295

how do we calculate the level of autonomous spending and the multiplier

image text in transcribed
Autonomous Consumption = 465 Marginal propensity to consume = 0.6 Autonomous Investment =295 Government expenditure = 450 Exports = 225 Imports = 130 + 0.1Y T = 0.2Y Yf = 2 237.9 Show all calculations: Q.1.1 Calculate the level of autonomous spending in this economy. Q.1.2 Calculate the size of the multiplier. Q.1.3 Calculate the equilibrium level of income. Q.1.4 Calculate the tax revenue to the government of this country when the economy remains in equilibrium. Q.1.5 Calculate what the equilibrium income should be if the government of this country decides to cancel all taxes, implying the tax rate would now be 0%. Q.1.6 Calculate the change in government spending required to reach full employment in 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

Research In Forest Economics And Forest Policy

Authors: Marion Clawson

1st Edition

1317362624, 9781317362623

More Books

Students also viewed these Economics questions

Question

What is the name of the program?

Answered: 1 week ago