Business, 24.10.2019 01:30 Clark1212

Assume an economy in which the marginal propensity to consume, c, is 0.8, the income tax rate, t, is 0.2, and the share of imports in gdp, nx, is 0.04. autonomous consumption, ca, is 660; autonomous taxes, ta, are 200; autonomous net exports, nxa, are 300; planned investment, ip, is 500; and government spending, g, is 500.

(a) what is the value of autonomous planned spending (ap)?

(b) what is the value of the multiplier?

(c) what is the equilibrium value of income (y)?

(d) what is the value of consumption in equilibrium?

(e) show that leakages equal injections.

(f) suppose government expenditures decline by 150. describe the economic process by which the new equilibrium value of y is attained.

(g) what is the new equilibrium value of y?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 04:40

Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Answers: 3

Answer

Business, 22.06.2019 12:30

Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented

Answers: 1

Answer

Business, 22.06.2019 19:50

The new york company produces high quality chairs. variable manufacturing overhead is applied at a standard rate of $12 per machine hour. each chair requires a standard quantity of six machine hours. production for the month totaled 4,000 units. calculate: the standard cost per unit for variable overhead. select one: a. $130,000 b. $192,000 c. $90,000 d. $100,000

Answers: 2

Answer

Business, 23.06.2019 01:30

What is the minimum educational requirement for a pediatric psychopharmacologist? a. md b. phd c. bachelors in medicine d. masters in medicine e. psyd

Answers: 1

Answer

You know the right answer?

Assume an economy in which the marginal propensity to consume, c, is 0.8, the income tax rate, t, is...

Questions