MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Transcribed Image Text: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.
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