Exercise 4: Multipliers Consider a keynesian economy, where MPC = 0.
Exercise 4: Multipliers
Consider a keynesian economy, where MPC = 0.8. Derive the effects of the following shocks on the income, dis-
posable income, consumption, private savings, government savings and social savings!
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Nowa) The government increases its purchases by 200 units. Use also a graph to show the effects!
b) The government increases taxes by 200 units. Use also a graph to show the effects!
c) The government increases its purchases by 200 units and nances it with a 200-units increase in taxes. Use
also a graph to show the effects!