Macroeconomics II

Philip Leatherwood, Lecturer

Kazakhstan Institute of Management, Economics, and Strategic Planning

23 January, 2001

Quiz # 1

  1. Y = C + I + G + X – M

C = 2000 + 0.8(Yd)

I = 6000

G = 5000

T = 4000

X = 2500

M = 3000
    1. solve for Y* (equilibrium income) ________________
    2. C* = _________________
    3. Find the expenditures multiplier (EM) = ________________
  1. Resolve for Y*, C*, and EM with T as a 25% income tax.
    1. Y* = ________________
    2. C* = ________________
    3. EM = ________________

3. Resolve for Y*, C*, and EM with M = to O.25Y (T = 4000)
    1. Y* = ________________
    2. C* = ________________
    3. EM = ________________
  1. Explain the differences in EM, above.

 

 

5. On the back of this page, graph expenditures and income for problems 1 and 3, above.
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