Unformatted text preview: b) Derive an expression for the government budget deficit. c) Suppose that: A = 100; c = 0.7; t d = 0.25; t e = 0.15; G = 300; I =100. Find equilibrium national income and the budget deficit. d) How does national income and the budget deficit change if a (in the consumption function) falls to zero? 3. In the context of the recession following the Global Financial Crisis, discuss the implications of: a) automatic stabilisers b) fiscal stimulus packages c) rising public debt....
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This note was uploaded on 03/15/2012 for the course EC 111 taught by Professor Timhatton during the Spring '12 term at Uni. Essex.
- Spring '12