If C= 450+0.5 Yd la= 275 billion Ga= 875 billion (X-M)a= - 50 billion, calculate the multiplier for this economy. Show method -

Multiplier = 2

Explanation:

Below is the calculation of multiplier:

Given, C = 450 + 0.5Yd

la = 275

Ga = 875

X-M = -50 billion

Plug these values in the below formula:

AD = C + Ia + Ga + ( X - M )a

Y = 450 + 0.5Y  + 275 + 875 + 50

0.5Y = 1650

"A"  is the autonomous expenditure.

Thus, A = 1650

0.5Y = A

Multiplier= Change in Y/ Change A

Change in Y/ Change A =1/0.5

Change in Y/ Change A =2

Thus, Multiplier = 2

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

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