Mathematics, 26.06.2020 16:01 dsanders20
Let: C = consumption, Ip = investment spending (as a function of price level), G = government spending, Tx = tax revenue, Yd = after-tax income, Assume for a given closed economy: C=100 + 0.9 Yd – 20P Ip= 400 – 40P G=300 T=100 Moreover, aggregate supply curve for this economy is defined by the following equation: P=1.41 + 0.0001Y a. (10 points) According to the investment equation (Ip= 400 – 40P) as overall price level in the economy increases investment spending decreases. How could you explain this situation? Please use graphs to elaborate your answer. b. (10 points) Find the equilibrium level of overall price and aggregate output in this economy. What would be the value of consumption and investment spending at this equilibrium? c. (10 points) How would the equilibrium aggregate output and price level change if government spending increases to Gnew=400? What would be the value of consumption and investment spending at this new equilibrium? d. (10 points) Compare equilibrium values of investment spending and consumption you find in parts (c) and (d). How would you explain the changes? Elaborate your answer for both investment and consumption.
Answers: 1
Mathematics, 21.06.2019 17:30, msdmdsm1186
Danielle earns a 7.25% commission on everything she sells at the electronics store where she works. she also earns a base salary of $750 per week. what were her sales last week if her total earnings for the week were $1,076.25?
Answers: 3
Mathematics, 21.06.2019 19:30, ginocousins06
Fa bus driver leaves her first stop by 7: 00 a. m., her route will take less than 37 minutes. if she leaves after 7: 00 a. m., she estimates that the same route will take no less than 42 minutes. which inequality represents the time it takes to drive the route, r?
Answers: 3
Let: C = consumption, Ip = investment spending (as a function of price level), G = government spendi...
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