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September 30, 2014

Homework Help: macroeconomics

Posted by John on Monday, April 21, 2008 at 12:57pm.

Could you please help me with these couple of problems?

Assume that C=a+(.75)(YD), where YD= Y-T

1. If the autonomous tax increases by 1000, the leakage schedule will shift up by how much?

2. A full employment income, planned aggregate expenditure exceeds income by 1000, what is the change required in G necessary to have equilibrium occur at full employment income?

3. A full employment income, planned aggregate expenditure exceeds income by 1000, what is the change required in T necessary to have equilibrium occur at full employment income?

4. At full employment income, planned aggregate expenditure exceeds income by 1000. The difference between the current equilibrium income and full employment income equals?

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