Question 1 (a)Given the following information, calculate the level of legitimate GDP that results in spending balance in the delivery (T is imposees or tax revenue). C = one hundred + 0.7 (Y - T) I = 100 G = 200 T = 200 X = 50 - 0.1Y Real GDP = C + I + G + X = Y = 100 + 0.7 (Y-200) + 100 + 200 + 50 - 0.1Y Y= 310 - 0.6Y 0.6Y = 310 Y= 775 1) What is the MPC in this example? What is the mononuclear phagocyte g overnance? What is the MPI? How does the MPI affect the huckster of the AE line, compared with the same fabric without here and nows or exports? In order to find the MPC in this case, we constructed a tabulate amid GPD and consumption and the utilisation formula is: C = 100 + 0.7 (Y-T) Since MPC= ê Consumption /ê Income = 3.5 / 50 = 0.07 Which is equivalent t the slope of the consumption function. Since mononuclear phagocyte system + MPC = 1 \MPS = 1 - MPC = 1 - 0.7 = 0.3 MPI = D I / D GDP But we do not get laid the changes in the amount of I and the GDP. There fore, we contain to take some other approach in finding the MPI. without delay given over the equation X = 50 - 0.
1Y Because export does not hold on the national income. However import does, so if we strike out the export equation with respect to Y, we will get the MPI. Now X = 50 - 0.1Y Dx / Dy = -0.1 \ MPI = -0.1 The bigger the MPI, the steeper the slope of the AE line, As the greater amount of GDP, the greater the amount of import as more import is consumed it... If you want to get a honorable essay, order it on our website: Bes tEssayCheap.com
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