In the simple Keynesian model, if the tax function is given by T = 0.15Y and the consumption function is C = 50 + 0.7YD then a 10-unit increase in government spending would increase equilibrium income by
a. 10 units.
b. 11.2 units.
c. 22.4 units.
d. 30 units.
e. none of the above
B
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The most prevalent market structures in the U.S. economy are perfect competition and monopolistic competition
Indicate whether the statement is true or false
Refer to Figure 3-2. A technological advancement would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
Consider a hypothetical economy, whose GDP was $10,000 . consumption equaled $9,800, investment equaled $125, goods exported equaled $255, and goods imported equaled $500, in 2010 . Calculate the government spending in this economy during the year
a. $120 b. $380 c. $245 d. $200 e. $320
Which of the following government policies is least likely to increase the standard of living in the United States?
a. Investment in education and skills training for workers b. Raising the minimum wage paid to workers c. Investment in technology d. Investment in tools and capital for workers