$MathMaster logo$

MathMaster

Home
general
with the following information answer the questions c 1060 0 8 yd 1 2000 g 800 x 2000 m 300 0 7 y t 0 3 c find the equilib

Question

With the following information, answer the questions: C =1060 + 0.8 Yd 1 = 2000 G =800 X = 2000 M = 300 ÷ 0.7 Y t=0.3 c. Find the equilibrium income d. If the state decides to increase taxes by 40%. Indicate what happens with the equilibrium income.

228

likes

1140 views

Answer to a math question With the following information, answer the questions: C =1060 + 0.8 Yd 1 = 2000 G =800 X = 2000 M = 300 ÷ 0.7 Y t=0.3 c. Find the equilibrium income d. If the state decides to increase taxes by 40%. Indicate what happens with the equilibrium income.

$Expert avatar$

4.7

111 Answers

Y = C + I + G + (X - M)

Given:

C = 1060 + 0.8Y_d

I = 2000

G = 800

X = 2000

M = 300 + 0.7Y

t = 0.3

c. Find equilibrium income:

Net taxes =

tY

Disposable income =

Y - tY = Y (1 - 0.3) = 0.7Y

So,

C = 1060 + 0.8 \cdot 0.7Y = 1060 + 0.56Y

Equilibrium condition:

Y = C + I + G + (X - M)

Y = 1060 + 0.56Y + 2000 + 800 + 2000 - (300 + 0.7Y)

Y = 1060 + 2000 + 800 + 2000 - 300 + 0.56Y - 0.7Y

Y = 5560 - 0.14Y

Y + 0.14Y = 5560

1.14Y = 5560

Y = \frac{5560}{1.14}

Y = 4877.19298

Rounded:

Y_e=4877

d. If the state decides to increase taxes by 40%:

t \text{ (new) } = 0.3 \cdot 1.4 = 0.42

New disposable income:

Y_d = Y - tY = Y(1 - 0.42) = 0.58Y

C = 1060 + 0.8 \cdot 0.58Y = 1060 + 0.464Y

New equilibrium condition:

Y = 1060 + 0.464Y + 2000 + 800 + 2000 - (300 + 0.7Y)

Y = 1060 + 2000 + 800 + 2000 - 300 + 0.464Y - 0.7Y

Y = 5560 - 0.236Y

Y + 0.236Y = 5560

1.236Y = 5560

Y = \frac{5560}{1.236}

Y \approx 4499.3

Rounded:

Y_e=4499

Frequently asked questions (FAQs)

Question: What is the unit vector in the direction of vector u = ⟨3, -4, 12⟩?

+

What's the unit vector in the direction of vector v = ?

+

What is the result of adding the vector [2, -3] to the vector [-5, 8]?

+

New questions in Mathematics

If you have a bag with 18 white balls and 2 black balls. What is the probability of drawing a white ball? And extracting a black one?

A normally distributed population has a mean of 118 with a standard deviation of 18. What score separates the lowest 72% of the distribution from the rest of the scores?

Determine the absolute extrema of the function 𝑓(𝑥)=𝑥3−18𝑥2 96𝑥 , on the interval [1,10]

What will be the density of a fluid whose volume is 130 cubic meters contains 16 technical units of mass? If required Consider g=10 m/s2

Determine the momentum of a 20 kg body traveling at 20 m/s.

Emma is on a 50 m high bridge and sees two boats anchored below. From her position, boat A has a bearing of 230° and boat B has a bearing of 120°. Emma estimates the angles of depression to be about 38° for boat A and 35° for boat B. How far apart are the boats to the nearest meter?

A mutual fund manager has a $350 million portfolio with a beta of 1.10. The risk-free rate is 3.5%, and the market risk premium is 6.00%. The manager expects to receive an additional $150 million which she plans to invest in several different stocks. After investing the additional funds, she wants to reduce the portfolio’s risk level so that once the additional funds are invested the portfolio’s required return will be 9.20%. What must the average beta of the new stocks added to the portfolio be (not the new portfolio’s beta) to achieve the desired required rate of return?

A researcher is interested in voting preferences on change of the governing constitution in a certain country controlled by two main parties A and B. A questionnaire was developed and sent to a random sample of voters. The cross tabs are as follows Favour Neutral Oppose Membership: Party A 70 90 85 Party B 50 50 155 Test at α = 0.05 whether party membership and voting preference are associated and state the conditions required for chi-square test results to be valid.

John he’s going to the carnival with his friends. He spends $25 on an admission ticket. He buys 10 games at X dollars each and two boxes of popcorn at Y dollars each. Write an expression to show the total cost of admission game, tickets and popcorn.

The sick-leave time of employees in a firm in a month is normally with a mean of 100 hours and a standard deviation of 20 hours. Find the probability that the sick-leave time of an employee in a month exceeds 130 hours.

(a) List the set of possible rational zeros of the polynomial function F(x) = 2x3 - 11x2 + 13x - 4. (b) Find all rational zeros of F(x). Only do part B

During a month's time, an automobile sales person receives a 6% commission on the first $5000 in sales, a 7% commission on the next $5000 sales, 8% commission on anything over $10,000. What is her commission for $36,000 in sales?

Determine the Linear function whose graph passes through the points (6, -2) and has slope 3.

A buyer purchased a North Carolina home for $475,250. The seller allowed the buyer to assume his first small mortgage with a loan balance of $110,000. How much is the excise tax paid in the transaction? $951 $729.50 $950.50 $221 none of the above

if y=1/w^2 yw=2-x; find dy/dx

If the area of a circle is 75.7ft2, what is the radius? Give the answer in metres. Round answer to 2 decimal places and enter the units.

The length of a rectangle is five more than its width. if the perimeter is 120, find both the length and the width.

Construct a set of six pieces of data with mean, median, and midrange of 67 and where no two pieces of data are the same.