Business, 26.02.2020 19:27 kalbaugh

Assume the following model of the expenditure sector: C = 420 + (4/5)YD T0 = 100 Io = 160 Go = 180 NXo = - 40 1- Calculate the multiplier? 2- Calculate the equilibrium GDP? 3- If the government would like to increase the equilibrium level of output (Y) to the full-employment level Y* = 3,800, by how much should government purchases (G) be changed? 4- Suppose government imposes a progressive tax policy and the new tax represents by: T = 100 + 1/4 Y a- Calculate the new multiplier? b- Calculate the new equilibrium GDP?

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Assume the following model of the expenditure sector: C = 420 + (4/5)YD T0 = 100 Io = 160 Go = 180 N...

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