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Related to the first question Prin Lab 6 (Que 2) -Lyngale x Q laecon1.lyryx.com orviets/LabServier7ceid -3824 b) Find the value of the goods market multiplier
Related to the first question
Prin Lab 6 (Que 2) -Lyngale x Q laecon1.lyryx.com orviets/LabServier7ceid -3824 b) Find the value of the goods market multiplier Pause Goods market multiplier = 0 c) Let G rise to 390. Solve for the new equilibrium Y and C. Y =O d) Demonstrate how the increase in G affects the economy through the multiplier, Use three rounds of effects to demonstrate the multiplier effects. Let the first round be related to health care the second round related to clothing, and the third round related to food. Round 1 -> As the government wants to spend $1 (or $1 billion) on health care, it demands the production of health care equipment such as hospitals, medicine, equipment, etc, to be built and sold to the government. So as AG = 1, the production AY = 0 , This Y is the income to the nurses, doctors, construction workers, etc. Round 2 ->As the nurses receive their new income of Y = 0 , they spend 0 % of this $ 0 on clothing - 0 cents worth of clothing would be produced, or AY = 0 > this 0 cents would be the income of the workers involved in making the clothing. Round 3 > As the clothing workers receive their new income of Y = 0 . they spend 0 %% of this 0 cents on food -> ( 0 )( 0 ) = 0 or 0 cents worth of food would be produced, or AY = 0 > this would be the new income to the food workers. e) Now consider monetary policies only. Suppose the BOC wants to drop the / to 0.05 or 5%, with G still at $290. Solve for the new I and the Al compared to when i = 0.10. Given the multiplier, much would you expect Y to rise by? = 0 Change in 1 = 0 Change in Y = 0 M. the consumption expenditure C, and the investment expenditure I. n Given the changes in (e MacBook Air
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