Assume the Ghanaian economy is closed(thus where there is no export and imports)with the information below.C= 400+ 0.8YdWhere Y (Y-T)I= 150G= 250T= 200a) Explain the concepts of marginal propensity to consume(MPC)and marginal propensity to save(MPS)b) What is the MPC and MPS for this economy?c) Explain the concepts of the autonomous spending and taxmultipliers.d) What is the autonomous spending multiplier for this economy?e) What is the tax multiplier for this economy?f) What is the equilibrium level of income for this economy?g) Suppose that the full employment level of output for thiseconomy is 2000.h) What sort of output gap is Ghana facing?i) Present the gap in a well labelled diagramj) What kind of policy can the government use to close this kind ofgap?

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Assume the Ghanaian economy is closed (thus where there is no export and imports) with the information below. C= 400+ 0.8Yd Where Yd=(Y-T) I= 150 G=250 T= 200 a) Explain the concepts of marginal propensity to consume(MPC) and marginal propensity to save(MPS) What is the MPC and MPS for this economy? Explain the concepts of the autonomous spending and tax multipliers.

Assume the Ghanaian economy is closed (thus where there is no export and imports) with the information below. C= 400+ 0.8Yd Where Yd=(Y-T) I= 150 G=250 T= 200 a) Explain the concepts of marginal propensity to consume(MPC) and marginal propensity to save(MPS) What is the MPC and MPS for this economy? Explain the concepts of the autonomous spending and tax multipliers.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 3DQ

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