Consider planned aggregate expenditure model from question 1 but taxes are proportional to income: so that total taxes paid are the tax rate multiplied by output, ty. assume: planned investment, i = $50 billion; government spending g = $50 billion; the tax rate is t =0.25; the consumption function, c= $100 billion + 0.80((1- t)y).

a. what is the equilibrium level of output?
b. if output in the economy started at 750 billion, what would happen to inventories and output?
c. at the equilibrium level of output: what are total consumption and savings?
d. if government spending increased to $75 billion, what would be the new level of equilibrium output? how has your answer changed from 1e?

Alandowner and his neighbor purchased adjoining undeveloped lots. after both built homes on their respective lots, the landowner suggested to the neighbor that a common driveway be built where the two lots joined. the neighbor agreed. the landowner and the neighbor split the cost of constructing the driveway and entered into a written agreement to equally share the costs of its upkeep and maintenance. the agreement was recorded in the county recorder's office. two years later, the neighbor built a new driveway located entirely on his lot. the common driveway, which the landowner continued to use but which the neighbor no longer used, began to deteriorate. the landowner asked the neighbor for money to maintain the common driveway, but the neighbor refused to contribute. three years later, the neighbor conveyed his lot to a friend. the friend entered into possession and used only the driveway built by the neighbor. by this time, the common driveway had deteriorated badly and contained numerous potholes. the landowner asked the friend to pay half of what it would take to repair the common driveway. the friend refused. the landowner repaired the driveway and sued the friend for 50% of the cost of repairs. will the landowner prevail?

Amarket that consists of all possible consumers regardless of their specific needs or wants is a

Tom has brought $150,000 from his pension to a new job where his employer will match 401(k) contributions dollar for dollar. each year he contributes $3,000. after seven years, how much money would tom have in his 401(k)?