Use a well labeled diagram of the Keynesian cross to show the effect of an increased in taxation on equilibrium income.
Suppose lumpsum taxes were increased by 600. What would be the change in consumption assuming an MPC of 0.75
What would be the change in national income for the economy described in b) above and with the same increase in taxes.
Suppose the government expenditures increased by 400 units what would be the change in equilibrium national income assuming the following consumption function C=300+0.8Y
For a custom-written paper on the above topic, place your order now!
What We Offer
• On-time delivery guarantee
• PhD-level professionals
• Automatic plagiarism check
• 100% money-back guarantee
• 100% Privacy and Confidentiality
• High Quality custom-written papers