Enable text based alternatives for graph display and drawing entry

Try another version of this question

Question 1

Consider the following infomation for Mexico.

Autonomous Consumption150
MPC0.65
Tax Rate0.15
Investment1000
Government Expenditure400
Exports20
MPI0.15

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

 

Suppose that there is an increase in Government Expenditure by `$40`.

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

 

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