# macroeconomics

posted by .

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?

• macroeconomics -

I'm not sure what you mean by "leakage schedule" That said, your marginal propensity to consume is .75, meaning your government spending multiplier is 1/(1-.mpc) = 1/.25 = 4. The taxation multiplier is one less than the government spending multiplier = 3.
So, if taxes go up by \$1000, income drops by 3*1000 = 3000.

2) use the government multiplier

3) Use the taxation multiplier.

4) ?? Is the question: "if the A is 1000 more than B, what is the difference between A and B"?

## Similar Questions

1. ### Macroeconomics

During the 1990s, the size of the federal government debt became so large that servicing the interest payments became a significant portion of total federal expenditure. In response, many representatives and senators felt that the …
2. ### Macroeconomics

If government spending (G) becomes negatively sensitive to changes in the interest rate, what effect does this have on autonomous consumption and planned investment that is crowded out?
3. ### Economics

Could you please check these thanks. Directions: Supply can decrease and increase depending upon several factors. Also you must put if that factor increase/decreases amount of supply, if the supply curves to the left/right, and if …
4. ### Macroeconomics - Investment Tax Credit

Assume that some large foreign countries decide to subsidize investment by instituting an investment tax credit. Then the home country's real exchange rate will fall and its net exports will rise. I completely don't understand the …
5. ### economics

With proportional income tax, a. The tax multiplier equals (MPC)(1-MPC) b. The tax multiplier equals –MPC/(1-MPC) c. The spending multiplier equals (MPC)/(1-MPC) d. The spending multiplier equals 1/[1-MPC(1-t)] e. The spending multiplier …
6. ### Economics

List the various causes of inflation and determine if they are an injection or a leakage. Demand-pull theory: This is a leakage. If all sectors in the economy try to buy more than the economy can produce, people may start to rely on …
7. ### chem: equilibrium

In which direction does the equilibrium shift for the following reaction?
8. ### Economics

Consider the simple economy of Behr, whose government does not tax its citizens. The consumption function of Behr is given by: C=500+.8Y, where Y is income. the autonomous consumer spending in this economy is: A. \$1000 B. \$800 C. \$500 …
9. ### Excel

I have my employee schedule in a excel sheet. It is a weekly schedule that doesn't change week by week, but changes day by day within a week. Every Monday, Tuesday, etc. is the same schedule. In the file are days for Monday, Tuesday, …
10. ### math

A can fill in 5min and B in 20min.if both taps are opened then due to a leakage it took 30min more to fill tank.if tank is full,how long will it take for the leakage alone to empty the tank?

More Similar Questions