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Urgent

- From Economics, Macroeconomics
- Due on 15 Nov, 2017 12:00:00
- Asked On 13 Nov, 2017 03:09:48
- Due date has already passed, but you can still post solutions.

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**Dod92****Rating :**0**Grade :****No Rating****Questions :**14**Solutions :**0**Blog :**0**Earned :**$0.00

Please see attachment. I would like a tutor who can explain the steps to figuring out the problems.

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**DEEPEYES****Rating :**30**Grade :****A-****Questions :**0**Solutions :**457**Blog :**0**Earned :**$1640.89

1. Suppose consumption is given by C = 1000 + 0.75 x Disposable Income while investment is given by I = 2000 - 20r. If government expenditures equal 0 (no expenditures) and the tax rate is 1/3 (the government collects 1/3 of income as tax revenue), what is the equation of the IS curve? What are the values r-intercept and the Y- intercept?
2. Using the data from #1, compute the value of the multiplier.
3. Using the data from #1, suppose the full employment level of output is 5000. What is the full employment equilibrium level value for r?
4. Using the data from #1, what is the government's budget balance at the full employment level of output?
5. Using the data from #1, suppose that the government decides to start spending. This raises government purchases from 0 to 2000. What is the equation for the new IS curve? By how much...

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