Question

please solve number one, two, and three

Assignment Submission For this assignment, you submit answers by question parts. The number of submissions remaining for each question part only changes if you submit or change the answer Assignment Scoring Your last submission is used for your score 1 - 18 points Homework 6 1. Given Y-C+1, C-A + bYd, 1 - 1o and Yd - YOT where A-100, - .6, lo - 40 and T-50 answer the following. a. Find the reduced form equation for aggregate expenditures b. Find the level of Ye. c. Compared to the traditional multiplier 1/(1-b), what happens to the multiplier when a lump sum tax is added to the model? 2. Given Y-C+1, C = A + byd, 1 - to, Yd - YOT and T - To+ty where A = 85, b ,75, 10-30 -2 and To=20 answer the following. a. Find the reduced form equation for aggregate expenditures b. Find the level of Ye. c. Compared to the traditional multiplier 1/(1-b), what happens the multiplier when a proportional tax is added into the model? 3. If the foreign sector is added to the model and there is a positive marginal propensity to import (2) use the equations below to answer the following: Y=C+I+G+ (OZ), C = A + bY, Z-Zo + 2Y where A - 70, -.9, 10.90, Go - 65, Xo -80, 2-15 and Zo -40 a. Find the reduced form equation for aggregate expenditures. b. Find the level of Ye. c. Compared to the traditional multiplier 1/(1.b), what happens to the multiplier when an import equation is added to the model?

Answer 1

♡ (9) y ( +I Y = Atbya + CHI Y = 100+ obly - So) + 40 y = 140 +0.6(4-50) (0) Y - 140 + 0-6y - 36 y = 110 torby 0.44 = 110 y = 110 04 1y = 275 tax or ( lum sum tax does not affect etre value of malliplier, only pes vuit proportionate tax is suposed. e a) y = CAI Y = 85+0.75(y 20-0.24 + 30' (6) Y= 85 +0.754-15-0.15y +30 y = 100 to.by 0.44 = 100 y = 100 E 250 ( there will be change in Gaultiplier: I MPC t t = 110.75 502) value of nullipher will decrease.