Given the Following Data for the Economy of Mokka

question 1

Essay

Given the following data for the economy of Mokka:
a)Calculate equilibrium GDP.
b)Calculate the multiplier.
c)If the tax function is: T = 30 + 0.2Y,calculate the government's budget balance.
d)Now change government spending by the amount of the surplus or deficit in an attempt to balance the budget.What will be the new equilibrium GDP?
e)What is the budget balance at the new equilibrium?

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Definitions:

Genes

The basic physical and functional units of heredity, made up of DNA sequences that instruct how organisms are built and function.

Hereditary Characteristics

Traits and features that are passed from parents to offspring through genes.

Negatively Charged Particle

An elementary particle with a negative electric charge, such as an electron.

Nucleus

The central and most important part of an atom, containing protons and neutrons, or a membrane-bound organelle found in eukaryotic cells containing genetic material.