What is the magnitude of income tax rate? b) What is the magnitude of marginal propensity to consume? c) What is the level of equilibrium output? d) What is the level of unplanned investment at the output level of 2,100 and at the level of 2,900? e) What is the change of equilibrium output when government expenditure increases from 250 to 350? Please provide your explanation. f) What would happen to the equilibrium output level if there are increases in income tax rate and marginal propensity to

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a What is the magnitude of the income tax rate Income tax t Y where t is the income tax rate and Y is GDP Income tax income tax rate GDP 525 t 2100 t ... View the full answer