Given that information for Country A are as below:
a) Calculate the GDP market price for Country A
b) Calculate the GDP factor cost for Country A
C) Discuss the problems in calculating Gross Domestic Product (GDP) for a country
Given: C = 600 + 0.8Yd I = 500 G = 300 T=200
a) Determine the equilibrium level of income using expenditure and injection-leakage approach
b) Calculate the value of the multiplier for this economy
Calculate the equilibrium level of income when there is an increase in investment from 500 to 800 using expenditure and injection-leakage approach.
Discuss the differences between expansionary fiscal policy and contractionary fiscal policy.