Explain, using the mathematical definition of equilibrium Y, Ye, the role played by autonomous spending in determining the size of Ye and changes in its size. Now, assume that there is a change in Ip of $100 and a change in G of $100, and that for every new dollar of income household saving rises by 25 cents; by how much will Ye change, if at all? Your third task is to compare this effect on Ye of the follow two other changes: A rise in G of $100 and a rise in Ta of $100 – is the effect the same as above? Why or why not? What if we had a rise in G of $100 but a fall in NX or $100 – would the change in Ye be the same? Why or why not? The population of the Czech Republic is ageing quickly and the old, who spent a relatively small proportion of each new crown (their monetary unit) of income, are being

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Given that MPS Change in saving Change in income 025 which means M... View the full answer