Enable text based alternatives for graph display and drawing entry

Try Another Version of These Questions

Question 1

Consider the following infomation for Canada.

Autonomous Consumption230
MPC0.9
Tax Rate0.05
Investment500
Government Expenditure200
Exports30
MPI0.25

What is the equilibrium level of GDP in the income-expenditure model?

 

Hint




Question 2

Suppose that there is an increase in Exports by $50.

What is the new equilibrium level of GDP in the income-expenditure model?

 

Hint




Question 3

What is difference between the original and new level of GDP as a result of an increase in Exports?

 

Hint