Solved: Assume that t rises to 025 whats the new equilibrium income, Macroeconomics

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Assume that t rises to 025 whats the new equilibrium income

Suppose C=50+0.8Y I=70 G=200 TR=100 t=0.2.

a) Calculate the multiplier and the level of equilibrium income

b) calculating the budget surplus (SP)

c) Assume that t rises to 0.25. What's the new equilibrium income and the new multiplier?

d) Calculate the variation of the budget surplus, would the variation of the surplus be higher or lower if c = 0.9 instead of 0.8.

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Macroeconomics: Assume that t rises to 025 whats the new equilibrium income

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Assume that t rises to 025 whats the new equilibrium income

Reference No:- TGS0649019

Have a Question? (oR Write a Review)

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Assume that t rises to 025 whats the new equilibrium income

Reference No:- TGS0649019

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