Econ 問題 (Three-Sector Model )

2009-07-06 9:25 am

A) WHAT IS THE AGGREGATE DEMAND EQUATION?

(B) SHOW THE EQUILIBRIUM BOTH IN EQUATION FORM AND GRAPHICAL PRESENTATION

(C) IF THE EQULILBRIUM INCOME AND FULL-EMPLOYMENT NATIONAL INCOME ARE 500 AND 750 RESPECTIVELY. WHAT KIND OF POLICY SHOULD GOVERNMENT EMPLOY TO ACHIEVE THE FULL EMPLOYMENT INCOME LEVEL ?
PLS ILLUSTRATE THE ABOVE SITUATION WITH THE USE OF DIAGRAM

(D) IF THE MARGINAL PROPENSITY TO CONSUME IS 0.75, WHAT WOULD BE THE MULTIPILER ?

(E) BASE ON THE INFORMATION PROVIDED IN(C) AND (D), HOW MUCH SHOULD THE GOVERNMENT EXPENDITURE BE CHANGED IN ORDER TO ACHIEVE THE FULL EMPLOYMENT INCOME LEVEL ? PLS SHOW YOUR COMPUTATION WORKINGS.

回答 (1)

用戶22404

2009-07-10 6:16 pm

✔ 最佳答案

A)AD=C+I+G+(X-M) (B) AD=AS or C+I+G+(X-M) = AS in graphic form, AD cut AS and forming a equilibrium level of income. (C) As THE EQULILBRIUM INCOME (500) is lower than the FULL-EMPLOYMENT NATIONAL INCOME (750), government should carry out expansionary fiscal policy by increasing government expenditure. AD curve will be shifted to the right and cutting AS curve at 750. (D) Multiplier = 1/(1-MPC) = 1/(1-0.75)=4 (E) Increase in national income = 4*Increase in government expenditure, hence, increase i ngovernment expenditure = (750-500)/4=62.5

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