Teco103

Assignment Task   Question 1 Suppose that the components of planned spending in an economy are C=500 +0.8(Y-T), I=1500, G=2000, X=0, T=0.25Y, where t is the fraction of income paid in taxes (the tax rate). As we will see in this problem, a tax system of this sort serves as an automatic stabiliser, because taxes collected automatically... Get Start

Assignment Task   Question 1  Suppose that your demand schedule for CD is as follows: a) Calculate your price elasticity of demand as the price of CD increases from $8 to $10 if i) your income is $10 000 and ii) your income is $12 000. (2.5 marks) b) Calculate your income elasticity of demand as your income increase from $1... Get Start