The change in equilibrium output

Related BrainMass Solutions

• Calculating the Equilibrium Output Level

  Change in equilibrium level of output (due to change in spending)=66.67 Change in equilibrium level of output (due to change in taxes)=-16.67 Net change in equilibrium level of output=66.67+(-16.67)=50 New equilibrium level of output=2400+50= 2450

• the change in equilibrium output

  Hence, the change in equilibrium output is $2000. This solution helps explore the change in equilibrium output within the context of microeconomics.

• Finding equilibrium level of output

  Determine the change in the equilibrium level of output.

• equilibrium prices, output, and unemployment

  213806 Explain the pros and cons of using a change in the tax rate Explain the pros and cons of using a change in the tax rate to achieve the desired increase in output.

• Compute the equilibrium interest rate

  Compute the new equilibrium interest rate (r) and new equilibrium real output (Y). c. Suppose that there is no change in fiscal policy, so that ther IS curve is Y = 11,000 - 250r.

• the effect on the marginal propensity to spend

  In this case the slope is 0.765, and hence the multiplier is Multiplier = 1/(1 - 0.765) = 1/0.235 = 4.2553 Therefore to change output by 3276.5957 we need a fall in aggregate demand that is given by 4.2553 * Change in AD = 3276.5957 Or Change in AD

• equilibrium price and output

  Assuming a competitive market, what effect would this change have on the equilibrium price and output for soft drinks?

• Aggregate Demand & Supply

  Suppose that policymakers change aggregate demand so that in long-run equilibrium, the nominal wage rate stays at 60. What is the long-run equilibrium price level?

• Autonomous Spending

  I've done it in the Excel file I'm attaching. Question b asks us to find the equilibrium level of output. Equilibrium is achieved when output is equal to aggregate spending.