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Lukecrayonz
Economics question
In the simple two-sector model, if C=120 billion +.75(Y) and I=30 billion, then equilibrium income is equal to what?
|dw:1351493536528:dw|
Assume the government cuts taxes by $5 million. If the MPC = 0.75, what is the maximum potential impact on real GDP according tot he Keynesian model?
Tax multiplier is |dw:1351494352266:dw| I'm writing from what I remember from last year..cause I haven't taken his lecture yet :)