Question
Suppose C-bar (autonomous C) is 4, 1-bar (autonomous ) is 1.5, G-bar (autonomous G) is 4, T-bar (autonomous T) is 3, NX-bar (autonomous NX) is
Suppose C-bar (autonomous C) is 4, 1-bar (autonomous ) is 1.5, G-bar (autonomous G) is 4, T-bar (autonomous T) is 3, NX-bar (autonomous NX) is 1, f-bar ((autonomous f) is 0, mpc is .4, d is 0.35, and x is 0.15.
1. Write the IS equation.
2P
2. Ceteris paribus, if T-bar changes by +3, by what amount will Y change?
3. Ceteris paribus, if f-bar changes by +1, by what amount will Y change?
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
4th edition
1305259335, 978-1305259331
