Question

signment 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 signment Scoring Your last submission is used for your score 1 - 18 points Homework 6 1. Glven Y-C+IC-A + bYd, I = lo and Yd - YDT 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+IC - A+ bYd, I = lo, Yd - YOT and T - To+ty where A 85, -75, lo30 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 + X OZ), C = A + bY, Z = Zo + 2Y where A = 70, -.9, lo-90, GO = 65, Xo-80, 15 and Zow40 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?

please do number 3

Answer 1

AE &At6Y+T+G+X- 20-27 AE & 40-O. To+0.94 9065+ AE = Y-AE 4-0.300+365 1060 C) Multiple MPLIMPM /-0-9 o.15 4 1-0.75 Multrphun 4