Macroeconomics Name of the University Student ID Section A 2 Section B 7 Reference 13

Running head: MACROECONOMICS
Macroeconomics
Name of the Student
Name of the University
Student ID

MACROECONOMICS1
Table of Contents
Section A.........................................................................................................................................2
Section B..........................................................................................................................................7
Reference.......................................................................................................................................13

MACROECONOMICS2
Section A
Part 1
Marginal propensity ¿ consume ( c ) =1−Marginal Porpensity ¿ save (s)
¿ , Marginal propensity ¿ consume ( c )=1−0.42
¿ , Marginal propensity ¿ consume ( c ) =0.58
Consumption is given by
Consumption=a+c (Y −T )
¿ , 171701.1=a+ ¿
¿ , 171701.1=a+ 150575.3
¿ , a=$ 21125.8million
Where a= autonomous consumption and Y= income.
Part 2
Income tax=Tax rate × Income
¿ , Income tax=0.175× 466312.6
¿ , Income tax=$ 81604.7 million
Therefore,
Total taxation= Autonomous tax+ Income tax
¿ , Totaltaxation=206700.0+81604.7

MACROECONOMICS3
¿ , Totaltaxation=$ 288304.7 million
Part 3
Income=Unintended inventory investmnet + 466312.6
On the other hand, at equilibrium unintended inventory investment is zero. Therefore, income is
Income=Consumption expenditure+ Planned investmnet +Government expenditure+ Net export− Autonomous tax
¿ , Unintended inventory investmnet +466312.6=171701.1+ 119020.5+ 48621.7+(840223.9−720695.8)
-206700.0
¿ , Unintended inventory investmnet +466312.6=171701.1+ 119020.5+ 48621.7+119528.1-
206700.0
¿ , Unintended inventory investmnet (UII )=−$ 214141.2 million
Now,
Actualinvestment =Planned investment +Changes Unintended invetory investment
Actualinvestment =119020.5+214141.2
¿ , Actual investment =$ 333161.7 million
Part 4
Import expenditure= Autonomousimports+(0.08 ×Y )
¿ , 720695.8= Autonomous imports+[0.08 × ( 466312.6−206700.0 ) ]
¿ , 720695.8= Autonomous imports+[0.08 ×259612.6]
¿ , Autonomous imports=720695.8−20769.0