For this problem set, we're going to keep things simple. Be sure to watch the lecture before completing this. Please use the following information and the following model from your book (and the lecture) to calculate Y (aggregate incomes in an economy). BE SURE TO SHOW YOUR WORK (It's the reason I made this a problem set instead of a quiz) Y-C+I+G C- Co + C;(Y-t) Total spending in a small society: • Household spending on medicine: $4,000 • Household spending on food: $1,000 • Household spending on recreation and entertainment: 20% of income Household spending on clothing: 15% of income • Household spending on art: 40% of income • Business investment on product lines: $10,000 • Business investment on equipment: $1,500 • Government spending on national defense: $3,600 • Government spending on roads: $2,000

For this problem set, we're going to keep things simple. Be sure to watch the lecture before completing this. Please use the following information and the following model from your book (and the lecture) to calculate Y (aggregate incomes in an economy). BE SURE TO SHOW YOUR WORK (It's the reason I made this a problem set instead of a quiz) Y-C+I+G C- Co + C;(Y-t) Total spending in a small society: • Household spending on medicine: $4,000 • Household spending on food: $1,000 • Household spending on recreation and entertainment: 20% of income Household spending on clothing: 15% of income • Household spending on art: 40% of income • Business investment on product lines: $10,000 • Business investment on equipment: $1,500 • Government spending on national defense: $3,600 • Government spending on roads: $2,000

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter1: What Economics Is About

Section: Chapter Questions

Problem 2QP

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