if inflation is increasing
unemployment rate is low
real gdp is increasing
real wages are increasing
and productivity is increasing
What fiscal policy should be implemented...?payment calculator
Y=C+S=cY+S+G G=tY t=tax rates
PY=P(C+S+tY)=(Wages+Profits)P
t=(W+Pr)P-PC-PS / Y=P(W+Pr-C-S) / Y
P= tY/ (W+Pr-C-S)
This one is the equation that tells how much we have to increase t and how prices will move after it.
a) If costs are lower and lower when Y grows, tax rate has to be diminished. A=W+Pr-C-S
b) u=渭Y
P=t (u/渭) /(W+Pr-C-S)=tu/渭 A
u=P渭A/t
Here you鈥瞯e got the equation for unemployment and taxes
c) Y/P%26gt;0
Sorry but it鈥瞫 too boring.
What fiscal policy should be implemented...?
loan
I%26#039;d say contractionary fiscal policy (higher taxes, lower spending) to such some money out of economy, but you should check if you textbook says something similar - I am not that good with macro.
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