The following is information for the economy of Tandor, where taxes are wholly autonomous: C = 50+ 0.8YD where YD = (Y-T) I = 150 a. The value of equilibrium income is $ b. At equilibrium, the amount of the budget c. If government increased both its spending and taxes by $70, the new equilibrium income would be $ A) $940, budget Balance is 0 and $1130 B) $1040, budget Balance is 0 and $1080 C) $1140, budget Balance is 0 and $1060 G = T = 300 XN 104-0.15Y D) $1240, budget Balance is 0 and $1380

The following is information for the economy of Tandor, where taxes are wholly autonomous: C = 50+ 0.8YD where YD = (Y-T) I = 150 a. The value of equilibrium income is $ b. At equilibrium, the amount of the budget c. If government increased both its spending and taxes by $70, the new equilibrium income would be $ A) $940, budget Balance is 0 and $1130 B) $1040, budget Balance is 0 and $1080 C) $1140, budget Balance is 0 and $1060 G = T = 300 XN 104-0.15Y D) $1240, budget Balance is 0 and $1380

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter12: Fiscal Policy, Incentives, And Secondary Effects

Section: Chapter Questions

Problem 12CQ

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