Project #29957 - Macroeconomics

Assume Consumption = 2 + .5Y, Investment spending =$1 trillion, Government purchases = $1.5 trillion, net exports via the ROW is -$.5 trillion (negative $.5 trillion).  (Y is the variable for income.)

1.  What is Income?

2.  What is the income/expenditure multiplier?

3.  If Congress and the President wanted to increase income by $1 trillion, how much would they need to increase government purchases?

4.  How much of the spending in 3 above is a) autonomous and b) induced?  Explain.

Subject Business
Due By (Pacific Time) 05/04/2014 11:59 pm
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy