In a national income model. Tax Revenue: Government imposes a tax of ten percent on income....

 

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In a national income model. Tax Revenue: Government imposes a tax of ten percent on income. T=tY = 0,1Y Consumption expenditures is linear function of disposable income. C = Co +YD = 100+ 0,6YD Suppose that in our model investment spending and government purchases are determined by government. G = 200 T = 160 What will be equilibrium level of income? Y =? If government decides to increase its expenditure from 200 to 246 what will be equilibrium level of income? Y =? Calculate the government budget before and after the increase in government expenditures. B = ? and B =? In a national income model. Tax Revenue: Government imposes a tax of ten percent on income. T=tY = 0,1Y Consumption expenditures is linear function of disposable income. C = Co +YD = 100+ 0,6YD Suppose that in our model investment spending and government purchases are determined by government. G = 200 T = 160 What will be equilibrium level of income? Y =? If government decides to increase its expenditure from 200 to 246 what will be equilibrium level of income? Y =? Calculate the government budget before and after the increase in government expenditures. B = ? and B =?