Given the Following Keynesian Model (A) Calculate the Equilibrium Level of Income and Indicate the
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question 24

Short Answer

Given the following Keynesian model:
$\begin{array} { c l } \mathrm { Y } = \mathrm { C } + \mathrm { I } + \mathrm { G } + \mathrm { X } - \mathrm { M } & \mathrm { I } = 250 \\\mathrm { C } = 80 + 0.75 \mathrm { Y } _ { \mathrm { d } } & \mathrm { G } = 100 \\\mathrm { Y } _ { \underline { d } } = \mathrm { Y } - \mathrm { T } & = 200 \\\hline \mathrm { T } = 0.20 \mathrm { Y } & \mathrm { M } = 0.30 \mathrm { Y }\end{array}$
(a) Calculate the equilibrium level of income and indicate the value of the current account balance when the economy is at its equilibrium income level.
(b) Suppose that all equations in the model above stay the same except the size of exports. Calculate the level of exports needed to yield an equilibrium income level that also has X = M, and indicate that resulting equilibrium income level.

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Definitions:

Second Meiotic Division

The second phase of meiosis where sister chromatids are separated, resulting in the formation of four haploid daughter cells from the initial diploid cell.

Haploid

A cell or organism having a single set of chromosomes, characteristic of gametes such as sperm and egg cells in sexually reproducing organisms.

Nuclear Membrane

A double lipid bilayer that encloses the cell's nucleus, separating its contents from the cytoplasm and regulating the passage of materials in and out of the nucleus.

Mitosis

A type of cell division that results in two daughter cells each having the same number and kind of chromosomes as the parent nucleus, typical of ordinary tissue growth.