Given the following parameters for the economy of North Happin:
a)What is the value of equilibrium income?
b)What is the value of the government budget at equilibrium income? Suppose $4,000 is the full employment level of income for North Happin.
c)By how much should the government of North Happin change G to reach full employment? Cannot calculate with the new consumption function

Question

Given the following parameters for the economy of North Happin:
  a)What is the value of equilibrium income?
b)What is the value of the government budget at equilibrium income? Suppose $4,000 is the full employment level of income for North Happin.
c)By how much should the government of North Happin change G to reach full employment? Cannot calculate with the new consumption function

Quizplus · Accepted Answer

The Answer of Given the following parameters for the economy of North Happin:
  a)What is the value of equilibrium income?
b)What is the value of the government budget at equilibrium income? Suppose $4,000 is the full employment level of income for North Happin.
c)By how much should the government of North Happin change G to reach full employment? Cannot calculate with the new consumption function

Given the Following Parameters for the Economy of North Happin