Calculate AE given the information below and completely fill in the table. Where is equilibrium in this economy based on the table? (highlight the row) Using the injections-withdrawals approach complete the table and demonstrate that the point you chose in part 2 is the equilibrium. Go back to Chapter 8 if you forget how this is calculated. Create another table and recalculate AE assuming that consumption has decreased at all levels by $25 (e.g. instead of consumption of 125 when total income is 95, consumption becomes 100). Where is equilibrium in this economy now? (highlight the row) Using the injections-withdrawals approach, complete the table again and demonstrate that the point you chose in question 4 is the equilibrium now. If this economy had exports, explain the impact of the net export effect on fiscal policy, providing an example. Taxes: $10 at each level of income Investments: $15 Government Spending: $25 Total IncomeTaxes Disposable IncomeCS I G AE 95125105135120145140150150155165160180170190180200185240200280215300225 Injections-Withdrawals Approach Item (Name the item here)Injections (place the $ amount in this column) Withdrawals(place the $ amount in this column) Totals Total IncomeTaxes Disposable IncomeCS I G AE 95105120140150165This document was truncated here because it was created in the Evaluation Mode.
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