Consider an economy in which all taxes are autonomous and the following values of autonomous consumption, planned investment, goverment expenditure, autonomous taxes, and the marginal propensity to consume are given: Ca= 1,400 Ip= 1,800 G= 1,950 Ta= 1,750 c= 0.6
a) What is the level of consumption when the level of income(Y) equals $10,000
b) What is the level of saving when the level of income(Y) equals $10,000
c) What is the level of planned investment when the level of income (Y) equals $10,000? What is the level of actual investment? What is the level of unintended inventory investment?
d) Show the injections equal leakings when income (Y) equals $10,000
e) Is the economy in equilibrium when income (Y)= $10,000? If not, what is the equilibrium level of income for the economy described in this question?
f) Is there a surplus or deficit in the goverment budget at the equilibrium level of income? How much?
Consider an economy in which all taxes are autonomous and the following values of autonomous consumption, planned investment, goverment expenditure, autonomous taxes, and the marginal propensity to consume are given: Ca= 1,400 Ip= 1,800 G= 1,950 Ta= 1,750 c= 0.6
a) What is the level of consumption when the level of income(Y) equals $10,000
b) What is the level of saving when the level of income(Y) equals $10,000
c) What is the level of planned investment when the level of income (Y) equals $10,000? What is the level of actual investment? What is the level of unintended inventory investment?
d) Show the injections equal leakings when income (Y) equals $10,000
e) Is the economy in equilibrium when income (Y)= $10,000? If not, what is the equilibrium level of income for the economy described in this question?
f) Is there a surplus or deficit in the goverment budget at the equilibrium level of income? How much?
