Return to the simple Keynesian model in Section 4. Suppose that: G is 700; I is 310;
Question:
C = 250 + 0.8YD Net
Taxes (T) are given by the tax function
T = -50 + 0.25Y
Calculate equilibrium income. Now assume that I falls 80 units to 230. Calculate the new level of equilibrium income and compute the value of the deficit (G-T) at that level of income. Suppose that the government raises lump-sum taxes (increases t0) by the amount of the deficit in order to balance the budget. What will be the new level of equilibrium income? Will the budget be balanced? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
The structural deficit is that portion of the deficit tha...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
As an exercise to gain familiarity with the 2SLS program on your computer, take the data provided for the simple Keynesian model in Section 14.3, and: a. Estimate the investment function with OLS. b....
-
Diagrammatically represent and explain the equilibrating process in the simple Keynesian model in the TE-TP framework.
-
In the simple Keynesian model, increases in AD that occur below Natural Real GDP will have no effect on the price level. Do you agree or disagree with this statement? Explain your answer.
-
Create a T-Account Transaction Account titles Cash d Common stock Supplies Creditors accounts payable) Cash Fees earned Rent expense Cash Creditors(accounts payable) Cash Accounts receivable Fees...
-
Janet Adams is preparing a worksheet. Explain to Janet how she should extend the following adjusted trial balance accounts to the financial statement columns of the worksheet. Service Revenue...
-
Consider the heat treating data in Table B.12. Split the data into prediction and estimation data sets. a. Fit a model to the estimation data set using all possible regressions. Select the minimum...
-
The following function plays an important role in the experimental modal analysis: a. time-response function b. modal-response function c. frequency-response function
-
Management at Glover & Lamb Inc. is concerned about controlling factory labor-related costs. The following summary is the result of an analysis of the major categories of labor costs for 2010:...
-
Given the following free cash flows. determine the IRR for the three independent projects A, B, and C. Data Table Initial outlay (Click on the following icon in order to copy its contents into a...
-
Read the case study: The Crimson Press Curriculum Center: The Crimson Group, Inc. and answer the following questions: 1. Prepare the cash flow worksheet contained in Exhibit 4. What does this tell...
-
Explain the Keynesians' objections to fixed rules for fiscal policy, such as a constitutional amendment that would mandate a balanced federal budget?
-
Suppose that the marginal propensity to consume out of disposable income is 0.8 and the marginal income tax rate is 0.1. What is the value of the autonomous expenditure multiplier? Now suppose that...
-
What taxes are paid by the employee only?
-
-1 1. State Leibnitz's theorem. If y = (sin x), show that (1-x)y+2-(2n+1)xy+-ny = 0 2. Verify Rolle's Theorem for f(x)=log- x+ab ; x [a, b]. How does Rolle's Theorem (a+b)x differ from Lagrange's...
-
PR/2 a+bsinx dx 7. Apply differentiation under integral sign to evaluate log absinx sinx 8. Define Gamma function. Apply Beta and Gamma function to evaluate: cos 60.sin* 30= 7 192 9. Find the area...
-
12. Deduce standard equation of hyperbola. dy dx 13. Solve the differential equation: x logx+y=2logx dy 14. Solve: (x-a)p +(x-y)p-y=0: where p = dx 15. Solve: (D-D-2)y = e* + sin 2x 16. Find a...
-
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 1 0 0 percent of the corporation s stock. The property transferred to the...
-
I need help with the implementation of the method insertStudentsIntoLastChair. The method is already answered. I just need help with an explanation of to why and how to get that answer. (c) On the...
-
Explain what is meant by the phrase pass by value.
-
Create a data model for one of the processes in the end-of-chapter Exercises for Chapter 4. Explain how you would balance the data model and process model.
-
In interpreting ratios such as those in Table one must be cautious about drawing the conclusion that diversification is rising as rapidly as the reported numbers rise. Suppose a Brazilian buys a U.S....
-
Can a government always collect more seigniorage simply by letting the money supply grow faster? Explain your answer.
-
Assume that a countrys inflation rate was 100 percent per year in both 1990 and 2000 but that inflation was falling in the first year and rising in the second. Other things equal, in which year was...
-
Figure 3 presents a network where N users are sharing a link of 1 Mbps bandwidth. Users are generating data at a rate of 100 kbps when busy, but are busy generating data only with probability p=0.1....
-
The big mall near Sally and Amy's city has extended their operating hours to accommodate the huge crowds expected for the After Thanksgiving Sale. In their eagerness to beat the crowd, Sally forgets...
-
While taking the measurement of a different sphere with a radius of r = 2 . 2 2 cm , your instrument has a measurement uncertainty of \ pm 0 . 0 4 cm . What is the propagated uncertainty of the...
Study smarter with the SolutionInn App