Suppose that a country is in a period of economic depression

匿名用户 最后更新于 2021-06-24 15:18 经济Economics

Suppose that a country is in a period of economic depression, the consumption function C = 15+ 0.75YD, the tax function T = 6+0.2Y, the transfer payment Tr = 2, the investment I = 20, and the government purchase G = 10. Calculation:

(1) What is the equilibrium total output?

(2) If output at full employment is 120, how much more government buying would be needed to achieve full employment?

(3) What is the impact of increased government purchases on consumer demand?

(4) How much increase in transfer payments is needed to achieve full employment?

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