C= 100+0.6yd
I= 500
G= 800
T= 200
X= 200
M=50+0.3y
Equilibrium level of GDP in the economy?
Answers
Answer:
(a)
Y=C+I+G+X-M\\Y=100+0.6YD+500+800+200-(50+0.3Y)\\Y=100+0.6(Y-T(+500+800+200-50-0.3Y\\Y=100+0.6(Y-200)+500+800+200-50-0.3Y\\Y=1550+0.6Y-120-0.3Y\\Y=1430+0.3Y\\Y-0.3Y=1430\\0.7Y=1430\\Y=2042.86Y=C+I+G+X−M
Y=100+0.6YD+500+800+200−(50+0.3Y)
Y=100+0.6(Y−T(+500+800+200−50−0.3Y
Y=100+0.6(Y−200)+500+800+200−50−0.3Y
Y=1550+0.6Y−120−0.3Y
Y=1430+0.3Y
Y−0.3Y=1430
0.7Y=1430
Y=2042.86
(b)
Marginal propensity to save (MPS)=Marginal propensity to consume (MPC)
MPC=Slope coefficient of consumption function=0.6
MPS=1-0.6\\=0.4MPS=1−0.6
=0.4
(c)
Marginal propensity to consume or spend (MPC)=slope coefficient of consumption function
0.6
(d)
Net Export function ( NX)
X=200\\M=50+0.3Y\\NX=X-M NX=200-50-0.3Y\\NX=150-0.3YX=200
M=50+0.3Y
NX=X−MNX=200−50−0.3Y
NX=150−0.3Y
The negative slope is based on marginal propensity to import because the net export are different between exports and imports and the induced change in imports causes an opposite change net exports.
(f)
The net export function shift due to unfavorable changes such as increase in price level in domestic economy and decrease in gross domestic product of economies.
Explanation:
mark me as brainlist if answer is correct
