The partial data in the table below are for the economy of Arinaka. Planned investment, government spending, and all taxes are autonomous. You may assume that the MPC, MPS, and MPM are constant. a. Fill in the blanks in table below. Y $700 800 900 1,000 T $100 YD C $560 S $40 45 I $100 G $90 XN $10 -5 b. The value of equilibrium income is $ c. If planned investment decreases by $20, the new value of equilibrium income is $ AE Unplanned I
The partial data in the table below are for the economy of Arinaka. Planned investment, government spending, and all taxes are autonomous. You may assume that the MPC, MPS, and MPM are constant. a. Fill in the blanks in table below. Y $700 800 900 1,000 T $100 YD C $560 S $40 45 I $100 G $90 XN $10 -5 b. The value of equilibrium income is $ c. If planned investment decreases by $20, the new value of equilibrium income is $ AE Unplanned I
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.7P
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