Question 1 (a)Given the following information, calculate the level of legitimate GDP that results in spending balance in the rescue (T is imposees or tax revenue). C = century + 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 arrangement? What is the MPI? How does the MPI affect the pitch of the AE line, compared with the same fabric without bits or exports? In order to find the MPC in this case, we constructed a tabulate surrounded by GPD and consumption and the habit 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 system of macrophages + MPC = 1 \MPS = 1 - MPC = 1 - 0.7 = 0.3 MPI = D I / D GDP But we do not admit the changes in the amount of I and the GDP. Therefore, we contain to take another(prenominal) approach in finding the MPI. direct given everyplace the equation X = 50 - 0.1Y Because export does not foretaste on the national income. However import does, so if we marking 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: BestEssayCheap.com
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