Consider a plain macro model with constant price level and demand determined output Using the following equations C 125 0 81Y, I 250, G 325, T 0 1Y, X 300, IM 0 21Y Calculate marginal propensity to consume marginal propensity the consume out of national income marginal propensity to spend Equilibrium national income Trade balance at eq national income (indicate if its a deficit or surplus) government budget balance at eq national income (indicate if its a deficit or surplus)

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Question: Consider a plain macro-model with constant price level and demand-determined output. Using the following equations: C= 125+ 0.81Y, I=250, G=325, T=0.1Y, X=300, IM=0.21Y Calculate: marginal

Consider a plain macro-model with constant price level and demand-determined output. Using the following equations: C= 125+ 0.81Y, I=250, G=325, T=0.1Y, X=300, IM=0.21Y

Calculate:

marginal propensity to consume
marginal propensity the consume out of national income
marginal propensity to spend
Equilibrium national income
Trade balance at eq national income (indicate if its a deficit or surplus)
government budget balance at eq national income (indicate if its a deficit or surplus)

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