Q2. QUANTITATIVE ( PLEASE FILL IN YOUR DIGIT ON THE RED UNDERSCORE SYMBOL In the country Pinarland, autonomous consumption (CA) is 1_0, marginal propensity to consume (C) is 0.9, investment expenditure (1) is 100, government spending (G) is 100, lump-sum tax collection (T) is 100, income tax rate (t) is 0.1, export (X) is 100 and import is given as M = 0.1yd Given the information, find a) the equilibrium output level, b) the budget balance c) the trade balance

Q2. QUANTITATIVE ( PLEASE FILL IN YOUR DIGIT ON THE RED UNDERSCORE SYMBOL In the country Pinarland, autonomous consumption (CA) is 1_0, marginal propensity to consume (C) is 0.9, investment expenditure (1) is 100, government spending (G) is 100, lump-sum tax collection (T) is 100, income tax rate (t) is 0.1, export (X) is 100 and import is given as M = 0.1yd Given the information, find a) the equilibrium output level, b) the budget balance c) the trade balance

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the relative importance of consumption spending (C) in aggreagte demand and some factors that affect it? What is the relative importance of investment spending (I) in aggreagte demand and some factors that affect it? What is the relative importance of government spending (G) in aggreagte demand and some factors that affect it? What is the relative importance of Net Export (NX) (Net Export = spending on exports (X) - imports (M)) in aggreagte demand and some factors that affect it?
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