The following data represent the economy of Mayberry: C=1000+0.5Yd, T=200, G=400, I=500 (a) Calculate the equilibrium...

 

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The following data represent the economy of Mayberry: C=1000+0.5Yd, T=200, G=400, I=500 (a) Calculate the equilibrium level of output. Graph your solution. (b) If the government spending increases by 400 what is the new equilibrium level of output? Use the government spending multiplier. (C) If the government increases taxes by 400 what is the new equilibrium level of output? Use the tax multiplier. (d) If the government increases taxes and spending by 400 what is the new equilibrium level of output? (e) Calculate the equilibrium level of output in case where taxes depend on income according to the following: T= -100+0.1Y. The following data represent the economy of Mayberry: C=1000+0.5Yd, T=200, G=400, I=500 (a) Calculate the equilibrium level of output. Graph your solution. (b) If the government spending increases by 400 what is the new equilibrium level of output? Use the government spending multiplier. (C) If the government increases taxes by 400 what is the new equilibrium level of output? Use the tax multiplier. (d) If the government increases taxes and spending by 400 what is the new equilibrium level of output? (e) Calculate the equilibrium level of output in case where taxes depend on income according to the following: T= -100+0.1Y.

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t equilibrium Y I G Y 1900 05 x Y 200 05Y 1800 Y 3... View the full answer