Laffer curve Study guides, Revision notes & Summaries

ECON 104 HOMEWORK 6 QUESTIONS AND ANSWERS Consider the following model i) C = 1500 mpc (Y - tY) ii) I = 800 iii) G = 500 iv) X - M = 500 - mpi (Y) where: t = the (flat) tax rate mpc = the marginal propensity to consume mpi = the marginal propensity to import suppose mpc = .80, t = .25, mpi = .2 Given the information above, solve for the equilibrium output: We know that the formula for the (government) spending multiplier is 1/(1-mpc(1-t) mpi). The value of the government spending multiplier in t...

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econ247 exam copy questions with answers all correct 2020 docs Question 1 The equilibrium of supply and demand in a market Select one: a. maximizes the prices at which producers are willing to sell. b. maximizes the total benefits received by buyers and sellers. c. minimizes the prices that consumers are willing to pay. d. produces both an efficient and equitable market outcome. Question 2 Of the areas identified in the answers below, which area is producer surplus? Select one: a....

Consider the following model i) C = 1500 mpc (Y - tY) ii) I = 800 iii) G = 500 iv) X - M = 500 - mpi (Y) where: t = the (flat) tax rate mpc = the marginal propensity to consume mpi = the marginal propensity to import suppose mpc = .80, t = .25, mpi = .2 Given the information above, solve for the equilibrium output: We know that the formula for the (government) spending multiplier is 1/(1-mpc(1-t) mpi). The value of the government spending multiplier in this problem is: Round to 2 decimal pl...