Question 1 (a)Given the following information, calculate the level of rattling GDP that results in spending balance in the economy (T is imposees or tax revenue). C = ascorbic acid + 0.7 (Y - T) I = 100 G = 200 T = 200 X = 50 - 0.1Y Real GDP = C + I + G + X = Y = 100 + 0.7 (Y-200) + 100 + 200 + 50 - 0.1Y Y= 310 - 0.6Y 0.6Y = 310 Y= 775 1) What is the MPC in this example? What is the mononuclear phagocyte placement? What is the MPI? How does the MPI affect the position of the AE line, compared with the same fabric without minutes or exports? In order to find the MPC in this case, we constructed a tabulate mingled with GPD and consumption and the custom formula is: C = 100 + 0.7 (Y-T) Since MPC= ê Consumption /ê Income = 3.5 / 50 = 0.07 Which is equivalent t the slope of the consumption function. Since mononuclear phagocyte system + MPC = 1 \MPS = 1 - MPC = 1 - 0.7 = 0.3 MPI = D I / D GDP But we do not screw the changes in the amount of I and the GDP. Therefore, we contain to take some other approach in finding the MPI. without delay given over the equation X = 50 - 0.
1Y Because export does not promise on the national income. However import does, so if we course the export equation with respect to Y, we will get the MPI. Now X = 50 - 0.1Y Dx / Dy = -0.1 \ MPI = -0.1 The bigger the MPI, the steeper the slope of the AE line, As the greater amount of GDP, the greater the amount of import as more import is consumed it... If you want to get a honorable essay, order it on our website: OrderCustomPaper.com< /a>
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