Keynesian income determination and the multiplier

ECS1601 Economics IB · number 1 on the Spot Map

How often Keynesian income determination and the multiplier is asked

10 of 10

papers asked it
avg 27 marks · last Oct 2016

Worth 1–16 marks when it appears as a written question, plus 86 multiple-choice items.

Where it was asked

First page of the May/Jun 2011 ECS1601 paperSee a real past paper — freeMay/Jun 2011 · 100 marks · the scan, as written

The questions

  1. May/Jun 2012, Q2.33 marks

    Working within a Keynesian model of an open economy, use the diagram provided to illustrate the impact of an increase in autonomous imports on the equilibrium level of income. Remember to label your diagram fully.Show the full question

  2. May/Jun 2012, Q3.12 marks

    Question 3 is based on the following information describing a Keynesian model: consumption function C = 400 + 9/10 Yd; autonomous investment I-bar = 500; autonomous government spending G-bar = 1 280; the tax rate t = 1/3; autonomous exports X-bar = 900; the import function Z = 600 + 1/10 Y; and the full-employment level of income equal to 5 510. Candidates are required to calculate the following values, showing all calculations. Using the given consumption function C = 400 + 9/10 Yd, calculate the marginal propensity to save for this economy, showing all your workings.Show the full question

  3. May/Jun 2012, Q3.22 marks

    Question 3 is based on the following information describing a Keynesian model: consumption function C = 400 + 9/10 Yd; autonomous investment I-bar = 500; autonomous government spending G-bar = 1 280; the tax rate t = 1/3; autonomous exports X-bar = 900; the import function Z = 600 + 1/10 Y; and the full-employment level of income equal to 5 510. Candidates are required to calculate the following values, showing all calculations. Based on the information given (C = 400 + 9/10 Yd, I-bar = 500, G-bar = 1 280, t = 1/3, X-bar = 900, Z = 600 + 1/10 Y), calculate the value of the multiplier for this economy, showing all your workings.Show the full question

  4. May/Jun 2012, Q3.32 marks

    Question 3 is based on the following information describing a Keynesian model: consumption function C = 400 + 9/10 Yd; autonomous investment I-bar = 500; autonomous government spending G-bar = 1 280; the tax rate t = 1/3; autonomous exports X-bar = 900; the import function Z = 600 + 1/10 Y; and the full-employment level of income equal to 5 510. Candidates are required to calculate the following values, showing all calculations. Using the same information (C = 400 + 9/10 Yd, I-bar = 500, G-bar = 1 280, t = 1/3, X-bar = 900, Z = 600 + 1/10 Y), calculate the equilibrium level of income for this economy, showing all your workings.Show the full question

  5. May/Jun 2012, Q3.42 marks

    Question 3 is based on the following information describing a Keynesian model: consumption function C = 400 + 9/10 Yd; autonomous investment I-bar = 500; autonomous government spending G-bar = 1 280; the tax rate t = 1/3; autonomous exports X-bar = 900; the import function Z = 600 + 1/10 Y; and the full-employment level of income equal to 5 510. Candidates are required to calculate the following values, showing all calculations. Given that the full-employment level of income is 5 510, calculate the increase in exports that would be required to move this economy from its equilibrium level of income to the full-employment level of income, showing all your workings.Show the full question

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