14. Calculate Equilibrium GDP (Y*) in each of the following situations (IP is Autonomous Planned Investment): (a) C= 50+.75(Y-10), IP= 100, G=20, NX=-15. (b) a 10, MP C = .8, T10, TR-5, IP = 50, G = 40, NX = 0. (c) a 15, MP C =.85, T=15, TR= 10, IP = 55, G=45, NX = 5. (d) The MPC is 0.75, Autonomous Consumption is 100, Autonomous Planned Investment is 80, Government Spending is 50, Net Exports are -20, Lump-sum Taxes are 50, and Transfer Payments are 20. T

14. Calculate Equilibrium GDP (Y*) in each of the following situations (IP is Autonomous Planned Investment): (a) C= 50+.75(Y-10), IP= 100, G=20, NX=-15. (b) a 10, MP C = .8, T10, TR-5, IP = 50, G = 40, NX = 0. (c) a 15, MP C =.85, T=15, TR= 10, IP = 55, G=45, NX = 5. (d) The MPC is 0.75, Autonomous Consumption is 100, Autonomous Planned Investment is 80, Government Spending is 50, Net Exports are -20, Lump-sum Taxes are 50, and Transfer Payments are 20. T

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 7E

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